Businesses can improve their shareholder value by fighting climate change. This is the inference from the initial trends that are emerging from the ongoing FE-EVI Green Business Survey. The latest round of survey focused on a select group of companies ranging from paper, white goods and glass to retail businesses. While half of the respondents (50%) say that emission reduction initiatives will improve their shareholder value as green markets get popular, 43% respondents believe that undertaking climate change mitigation measures will increase the motivation of their employees.
Different companies are taking different initiatives to mitigate climate change. More than one-third of the respondents (36%) are using energy efficient vehicles. Less than one-third of the respondents (29%) are using alternative energy sources. Also, 29% respondents are planning to map their carbon emissions and become carbon neutral in the future.
The respondents are not only sensing the business opportunity, but also the climate change risk. A majority of the respondents (64%) perceive a reputational risk. Again, 64% respondents perceive an operational risk because they fear that climate change would lead to an energy crisis. There are odd companies, though. Some big retail businesses groups don?t apprehend any climate change related risk.
Knowledge about climate change is fairly widespread, but appreciation of the climate change impact isn?t. Though less than half of the respondents (43%) claim deep knowledge about climate change, only 29% respondents say that climate change will severely impact their businesses. In all, a majority of the respondents (79%) have not been set any formal emission reduction targets.
Most respondents (71%) say that it?s the responsibility of the government to raise awareness about climate change and formulate appropriate policies to mitigate climate change. At the same time, 57% respondents admit that it?s also the responsibility of businesses to tackle the challenges.
The survey is still underway and final results are expected by September-end. Conducted by The Financial Express (FE) and Emergent Ventures India (EVI), a climate change mitigation advisory firm, the survey of 300 top business houses in the country aims to map the greening of Indian businesses and come up with recommendations for the industry to follow a low-carbon and high growth trajectory to stay ahead of the global competition.