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"The issue of climate change is one that we ignore at our own peril."
─ President Barack Obama

The most comprehensive survey of its kind yet completed, Appetite for change examines attitudes in the international business community towards environmental regulation, legislation and taxes. Based on almost 700 interviews─conducted in 15 countries ─executives shared their views on the impact of climate change, their preferred environmental policy tools, the role of government in protecting the environment, and the ingredients necessary for a global climate change deal.

Climate change is testing the ability of the world’s leaders to develop effective environmental policies and many─in and out of government─are frustrated with the pace of negotiations, as evidenced by the Copenhagen summit. While a large majority of businesses are potential supporters of incentives, emissions trading schemes and carbon taxes, many executives also believe that current government policies are not sufficiently coherent or effective. Still, they remain ready to support policies that are consistent, clearly linked to saving the environment, and developed in consultation with the private sector.

Among the survey's key findings were:

• Climate change is undoubtedly a real issue for business. The majority of companies expect to have to make changes to the way they conduct business over the next 2-3 years. A quarter of businesses expect these changes to be significant.
• Government leadership is indispensable in combating climate change, and the business community is ready for, and supportive of, government action.

• Through legislation and regulation, governments exert a stronger influence on environmental practices than any other force motivating businesses. Top influencers on corporate behaviour are compliance, corporate reputation, cost savings and competitive advantage.
• Regulations and taxes will create costs for businesses, but they may at the same time create a level playing field, as well as opportunities for new sources of competitive advantage and new ways to enhance reputations.
• Businesses believe that today's environmental taxes, regulations and incentives are ineffective, inconsistent and unclear; they want clear long-term investment commitments and input into policy formulation.

• Businesses would like to see a combination of "carrots" (tax incentives) and "sticks" (regulation and tax charges) as encouragement to reduce their environmental impact: carbon taxes, market trading schemes and incentives all have widespread support in the business community.
• Executives want to see monies raised from environmental taxes and regulation being reinvested in environmental and low-carbon programmes.
• Business leaders want to see more policy coordination at the national and international levels. They remain hopeful that they can work with governments to create smart environmental policies.