Talking points

Based on almost 700 interviews─conducted in 15 countries─Appetite for change examines attitudes in the international business community towards environmental regulation, legislation and taxes.

The executives polled 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.

Below we offer a brief overview of the key findings, from the point of view of businesses and policy makers:

For businesses:

  • As a result of climate change, most organisations around the world already expect to change the way they conduct business in the next two to three years, and are developing strategies to respond, even though government policies remain uncertain.
  • Corporate climate change strategies will affect operations, key performance indicators and innovations, around new products and services.
  • Through action and investment, businesses have proven that they are committed to reducing their impacts on the environment. Many already measure their environmental performance and some also report on this.
  • In response to the growing momentum for tax and regulatory changes, businesses are more closely monitoring tax policy developmentsand are engaging with policymakers.
  • In many businesses, environmental legislation is increasingly demanding cross-functional working, as Environment / Sustainability Directors liaise with Tax Directors on the tax and regulatory implications of policy developments.
  • For the business that is prepared, there are opportunities in terms of cost savings and positive reputational advantage. For those who are not prepared, there is the threat of being left behind.
  • Some sectors are naturally more advanced than others, depending on the nature of their businesses. Heavy polluters are generally far more prepared than low carbon users.

For policy makers:

  • Business leaders around the world recognise the need for meaningful emissions targets. Targets need to be ambitious and backed by legally binding frameworks. To be effective, national targets also need a monitoring and verification regime.
  • In the battle against climate change, government leadership is considered to be indispensable. A large majority of business executives believe that governments should either lead or help to lead behavioural changes.
  • Businesses want clear long-term investment signals, and input into the formulation of direction and derivative policies.
  • Businesses generally believe that existing environmental taxes, regulations and incentives are ineffective, inconsistent and unclear. Tackling this is critical for the transition to a low carbon economy.
  • Carbon taxes, market trading schemes and incentives all have widespread support in the business community as potential policy instruments. Most business leaders do not see carbon taxes and trading as mutually exclusive.
  • Business leaders want to see monies raised from environmental taxes and regulation being used to fund environmental and low carbon programmes.
  • Political leaders who activate this potential have a good chance of creating historic solutions to the unprecedented challenges facing our planet.