GE Citizenship

Expert Perspective: Adapting to the Challenge of Climate Change

David Runnalls
Executive Director, International Institute for Sustainable Development (IISD)

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Climate change is the most important challenge for economic policy makers over the next 20 to 25 years. The science is becoming more certain and ominous. Some eminent scientists, such as Dr. James Hansen of NASA, think that we are already very close to the point of no return. Even the more optimistic predict that we have only a decade or two to make major changes to the energy systems that underpin our economies. And even if we do slow down, the earth will still be faced with the prospect of rising sea levels, water shortages and droughts, hotter temperatures, more frequent and more violent storms, and increasingly acidic oceans.

The response of the best companies has been one of the bright spots in this gloomy scenario. They have not only sensed the business opportunities in helping to limit CO₂ emissions, such as the development and sale of more energy efficient products, but also in their investments in renewable energy sources. Some companies have even been actively encouraging governments to move quickly to establish an effective international climate change regime and proper pricing regimes for carbon.

While it is vital to reinforce mitigation measures in this way, most companies have failed to respond to the challenge of adapting to the current and future impacts of climate change. Are a company’s facilities secure enough to withstand flooding and other natural disasters in vulnerable regions? And even if the company’s facilities are secure, are the communities in which their employees live likely to survive the changes? Will the various components of a global supply chain be robust enough to face the challenges?

Some of this can be dealt with through much better risk assessment. Some of it must present promising lines of business in water supply, for example. But much of it will pose a real challenge for companies that believe in the broader social responsibility of the corporation. Can we help those at the bottom of the pyramid to adapt to the changes in the global climate?