Catalist

A Stern Warning

Published on the 30th October, the Stern Review is a stark reminder of the cost of taking action to curb climate change, but even more concerning is the cost of taking no action at all.

Environmentalists are usually portrayed a tree hugging, anorak wearing, whining, doom and gloom enthusiasts who dwell on the bleak overtones of climate change by pontificating about melting ice caps, rising sea levels, eroding coast lines, extremes of weather, floods, droughts, crop failures and so on. But all of this merely passes by without much attention due to the fact that it is far away in terms of both time and geography.

However, the Stern Review has turned this on its head, by tackling the problem from a perspective that everybody can focus on – ‘the pound in the pocket’.

Money is something that everybody understands. The seller wants to make a good profit, the buyer wants to get a good deal, the organization wants high output at low cost and the individual wants higher pay. In fact, not only does everybody want more money, but they want to hold on to it and not have it eroded by inflation or taxes – all of which leads to the crunch.

Modeling for the report estimates that by investing now in mitigating the effects of climate change, would cost in the region of 1% of GDP – leave it and it could very soon escalate to a massive 20% or more – and this is not in a Star Trek timeframe; it could kick-in as soon as 2050. In other words, everybody will be a fifth poorer than they would otherwise have been. Or put another way, by investing in reducing the causes of climate change now, we could be 19% richer in the future than we otherwise might be.

The scientific evidence is now overwhelming: climate change presents very serious global risks, and it demands an urgent response. Unfortunately, if that response does not come quickly and positively from a voluntary nature, it could easily transform into imposed higher taxes, the introduction of new green taxes, global recession, eradication of certain products (and manufacturing industries), restriction on personal activities such as travelling (particularly by air), social exclusion, health impacts, conflicts and aggression – all of which nobody would want to endure.

But the medicine may not be easy to take. We need to make a step change in our habits and actions that contribute to climate change. For many of us this may seem unpalatable, but it can be made easier by good reasoning, guidance and timely direction.

Procurement professionals will know the term ‘lead times’. And in the context of the Global Environment, what we do now can only have a limited effect on the climate over the next 40-50 years. However, what we do within the next 10-20 years can have a profound effect on the climate in the second half of this century and beyond

The call for action is now. It will take great resilience and fortitude to carry this through but it will be worth it in the end – for the economy, for society, for the environment and future generations – act now to save later, or put another way ‘invest to save’ in the future, and survival, of the planet.

Posted by Brian Millsom, Environmental Impact Manager from OGCbuying.solutions on 31/12/2006 - 12:45:34