Environment

Climate change, or more precisely, carbon dioxide, is fast becoming the touchstone environmental issue. Take it seriously, measure and report your emissions, show year on year improvements - and you'll be seen as environmentally responsible.

Governments have latched on to climate change as the issue lends itself to target setting and clear measures. It is also tailor-made for the media - simple proposition (carbon dioxide causes global warming), graphic consequences (storms, floods), easily identifiable villains (companies).

Despite continuing scientific uncertainties, the body of informed opinion has moved strongly in favour of precautionary action. Shell's chairman recently expressed his grave concerns. ExxonMobil participated in the Carbon Disclosure Project this year, firmly encouraged by its institutional investors. BP says it has saved $650 million by cutting carbon emissions. The Association of British Insurers says storm and flood claims have doubled over the last five years, and worse is in store. Indeed the most powerful driver has been the financial services sector, which is increasingly seeing this as a cost and risk issue.

The bad news is that the easy part - increasing eco-efficiency in direct operations - is starting to run its course. Needed now, if national reduction targets are to be achieved, are absolute costs. That means changing the specification of goods bought from suppliers and - crucially - improving the eco-performance of your own products without significant cost increases. One company on the leading edge is Fujitsu, which has just announced 'stage 4' of its environmental programme: all major product groups must have 'super green products' in their ranges by the end of 2006, each one with its CO2 reduction measured, so helping "customers' endeavours to reduce environmental impact". By the same deadline, all Fujitsu suppliers must have an EMS in place. It's here, in the value chain, where a green future surely lies.