Largest emitters of CO2 demand clear government guidelines to address climate change: Accenture

Mumbai:More than three-quarters of companies in the chemical, energy and natural resources industries worldwide are looking to policy makers to set a clear and consistent framework that supports technology innovation and lays out global emission targets and efficiency standards to help reduce the level of greenhouse gas emissions, according to a study on climate change released today by global consulting firm Accenture.

The study, based on a survey of more than 130 executives in major resources companies in the chemical, energy, forest products, metals / mining and utilities industries in North and South America, Europe and Asia, found that while the executives recognize the importance of their own role in addressing climate change, they are looking to politicians to drive solutions by providing clear frameworks against which they can plan and act effectively.

Asked to list the three elements that are most likely have an impact on stabilizing carbon emissions in the long term, the greatest number of respondents -- 84 per cent --  cited politicians, followed by energy providers (71 per cent) and major industrial users (64 per cent).

In addition, one of the clearest findings from the research is that resources companies, the world's largest emitters of CO2, now recognise the importance of climate change to the future of their business. An overwhelming majority (87 per cent) of respondents said they consider climate change an important challenge that their company will have to face in the next five years, with 50 per cent regarding it as a 'key' challenge. The importance of climate change is highest for executives in the utilities industry, with 71 per cent of these respondents citing it as a 'key' challenge.

''Our research indicates that we are undergoing a tipping point on the topic of climate change, as governments, customers, investors and employees are taking action – moving step-by-step toward a low or no-carbon economy,'' said Sander van 't Noordende, group chief executive of Accenture's Resources operating group. ''Energy companies will face fundamental new opportunities and challenges in various areas of their business, including creating and executing climate change strategies, applying supply- and demand-side solutions, participating in carbon and financial markets, and investing in energy-related physical infrastructure.''

The research also identified geographic differences among executives. For instance, 73 per cent of respondents in European Union (EU) countries said they regard greenhouse gas emissions as an integral part of their business, compared with only 37 per cent of respondents based elsewhere. EU resources companies regard their management of carbon emissions as an important element of corporate performance, not as a siloed regulatory burden. More than half of respondents in EU countries said they regard greenhouse gas emissions performance as a key operational metric, compared with less than 40 percent of respondents in other regions.