Environment

It's been a long-running theme at Briefing that many of the most awkward CSR issues are best tackled through a concerted industry approach. Last issue, we reported on the mobile phone sector sorting out handset recycling (aided, it must be said, by an imminent EU directive). Here we report on travel, motor, agriculture and, ahead of the curve, financial services, variously addressing their own industries' issues and agreeing how to report them externally.

Why are the banks and insurance companies moving ahead? One reason is that, if there is an overall business case, as financiers they see it first. The doubling in the cost of natural disasters which we've seen over the last decade feeds straight through to insurance costs and premiums. And when bankers lend money or invest in projects, they take a keen interest the world over risks that might affect their ability to get the money back. However, the business case clearly has its limitations. UNEP says lack of awareness is a critical barrier to further action, with banks citing delays by governments in reaching international agreement as a reason for not acting.

At heart, this boils down to difficulties integrating big picture climate change worries into individual commercial decisions. Without the numbers, bankers and actuaries find it hard to assess risks. Their scepticism about international climate change agreements such as Kyoto is understandable. It would take a cut in emissions by 60%, not a slow-down in the increase, to get down to the sort of double preindustrial levels that experts say we need. In truth, we are a long way from market mechanisms solving the sustainability challenge. At least for now we can say that these new industry reporting initiatives should yield consistent and usable numbers out, and so prepare the way for the bold and radical steps that must lie ahead.

Do you agree? Disagree? Share your views with us by emailing editor@ccbriefing.co.uk