Case Study: Earnscliffe

Ignore environmental responsibility and face the possibility of corporate extinction.

Thanks to the sustained efforts of researchers, activists, forward-thinking politicians and environmentally conscious citizens, the environment (and climate change) has become one of the key policy drivers influencing decisions from the boardroom to the dinner table.

This has begun affecting the way consumers make choices, the way media cover stories, and governments regulate. Change is no longer a blip on the horizon - its here and business needs to align with this new reality or risk losing out to competitors who do.

Operating in Unsure Times

We are living in a transitional time. Governments are in different states of action (or inaction) while corporations are trying to demonstrate their greenness while juggling a complex and ever-changing regulatory environment. Activists are encouraged that people are finally listening - but face the challenge of redefining and refocusing themselves now that their fight has gained general acceptance. So where does this leave citizens? And how does business fit into this new reality? To answer these questions, we need to look at a few key drivers.

Regulation Will Change But it Won't Go Away

Put aside for a moment the public's desire for business to use more sustainable practices - and the advent of search engines, blogs, and social networking sites that can easily mobilize large armies of people with a single click. Regulation is something that business simply cannot ignore.

Although federal governments in Canada and the United States have both failed, thus far, to commit to hard reduction targets for greenhouse gas emissions, political leadership is out there. In the West, the state of California and province of British Columbia have initiated concrete actions to reduce greenhouse gases and address climate change. From California's Renewable Portfolio Standard to British Columbia's Carbon Tax, a political assault on climate change has begun.

North American Cap and Trade systems are also being developed at the state and provincial level such as the Western Climate Initiate and the Regional Greenhouse Gas Initiate. Chances are if your regional government doesn't have a carbon-costing system in place, they will soon and it's going to cost you.

Communicating and Positioning

Get past that warm fuzzy feeling - now it's about branding, positioning, opportunity, and mitigating risk.

Governments are regulating and consumers are making choices based on environmental criteria.

Ensuring your brand or corporate identity is recognized as a social and environmental leader is critical to your future success.

Ten years ago, Corporate Social Responsibility (CSR) programs were very uncommon. Typically, a corporation would engage its employees and community through supporting a "run for a cure" or helping to fund a new playground. While these initiatives are important and need to continue, new best practices far exceed showing a commitment to the community in which you operate or market products - they go to the core of your commitment to sustainable development.

Companies need to integrate thinking and action based on how they operate. Whether it's sourcing materials and products or transporting them to market, tomorrow's green leaders are addressing their carbon footprint through reductions and offsets - today. An effective CSR program can help develop employee satisfaction, create ways to drive down costs, generate new opportunities, and ultimately drive sales.

CSR programs can be a foundation for action toward communicating with customers, regulators and potential third-party allies. Building from this foundation, a business can set priorities, and demonstrate to stakeholders a commitment to environmental issues while creating a position to hedge impending government regulatory commitments. A well-thought out plan, with buy-in from all levels of your company, will save you a lot of money and headaches down the road.

As consumers become more aware of corporate economic and social footprints, successful companies that integrate economic, environmental, and social imperatives into their bottom line will prosper. Those that think it's a fad might find they have more in common with fossils than fuel.

*Footnotes