Details

  • Service: Advisory, Risk Consulting, Internal Audit, Risk Consulting Services
  • Type: Business and industry issue
  • Date: 12/7/2010

Building Bridges 

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Business is simple. Business invests where it can see a return. If it is not seeing a return it will not invest.

Today is spent at the World Business Council for Sustainable Development Business Day at the COP.

 

The day is entitled Building Bridges and reminds me of the first training I ever received on problem solving - the bridge is a solution, the problem is how to cross a river - beware wrapping an assumed solution into you problem statement.

 

This warning really resonated listening to Christina Figueres who so generously took time out from the main negotiations to open the proceedings.

 

Her insight into what is happening, and particularly why not much is happening, was really valuable.  The Kyoto Protocol path can't move because Russia, Japan and Canada won't agree a second period beyond 2012.  The non-Kyoto path can't really move unless the Kyoto path moves.

 

Her view of the role business is playing in all this, and the responsibility she seemed to place at business' door was worrying.  She clearly stated that the reason that Governments can't progress the discussions is the influence of business.  She called on business to give permission to negotiators to come to a deal as if this was a permission that is somehow in the gift of business and is so far withheld.  I was left imagining that the negotiation room full of government representatives saying "I'd love to take a more constructive approach but business won't let me".

 

I think it worth remembering that business is simple.  Business invests where it can see a return.  If it is not seeing a return it will not invest.  At the moment it makes more sense to do business as usual than low carbon business - that's just a fact of the market.

 

The only permission negotiators need from business is permission to create certainty and stability - and there will never be a time when that permission is withheld.

 

Provide that and business will invest.

 

Blog posting from Vincent Neate, UK Head of CC&S

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