Last week Jos Delbeke took charge of the new European Commission’s Directorate-General for Climate Action as Yvo de Boer planned his departure as head of the UNFCCC to become a global advisor for KPMG in July. Meanwhile, the US climate change legislation has also been facing a difficult time with three major companies announcing last week that they were withdrawing their support for the legislation in Congress. In the aftermath of the Copenhagen Conference and “Climategate,” it is a difficult time for international climate change politics.  Rather than providing the certainty of an international agreement -- which many of us crave -- we are left with the prospect of a year (or more) where low carbon investment decisions will continue to be difficult ones to make.

Perhaps it is worth remembering that the reasons for action on climate change are not just about avoiding a global average temperate increase beyond 2 degrees. There are more practical reasons for companies to act, which includes the forecasted increases in energy costs, or at the very least, continued price volatility. Concerns about energy supply security are also warranted as our reliance on electronic and electrical technologies requires successful improvements to the electricity grid and generation assets, which requires significant investment across Europe and around the world.

The business costs of water supply and waste disposal are also expected to increase as natural resources become increasingly scarce and legislation tightens. For some businesses, biodiversity is also critical to business success and this can be undermined by deforestation and habitat destruction. Therefore, the efficient use of natural resources will remain critical to competitiveness, despite the delay in reaching an international climate change agreement.

If as a company you do not already have an enterprise view of your natural resource use, then this is a fundamental requirement for successful business. The rapid realization by many enterprises that they need a carbon/sustainability management solution is indicative of the fact that companies are not waiting for politicians to resolve their national differences. Corporate sustainability leaders are well aware that they need to accurately meter and monitor their use of natural resources, and put in place an effective management plan to maintain an advantage over competitors.

These leaders also know that the climate change science will hold true and that sooner or later an international climate change agreement will be found to replace Kyoto, and that the later it comes the more stringent it will need to be to bring us back on course to limit temperatures at 2 degrees. This target for the maximum temperature increase has been acknowledged by both China and the US in the recently signed Copenhagen Accord, the two biggest emitters.