5. Multi-criteria Decision Aid (MCDA)
7.10 The Corporate Climate Change Response Framework
7.10.3 The Detail
A framework, by definition, gives only guidance and is in no way prescriptive, neither is it meant to be. The framework is designed for a variety of organisations in different industries, hence the need for a best-balanced choice response. Thus success in crafting a successful climate change response strategy lies in business executives skilfully generating and evaluating the alternatives against set criteria. Reviewing will be necessary as new information and new technologies becomes available; new skills and competencies are acquired; and as the planning horizons or climate change missions mature.
Internally Focused
Figure 7-2 Climate Change Response Options
Raising Awareness
•Baselining
•Awareness / education
•Behaviour modification
•Public relations / Reporting
•Understanding GHG/CO2
•Community involvement
Adaptation &
Operational Efficiencies
•Energy efficiency
•Material or resource efficiency
•Waste management
•Water Management
•Business operations redesign
•Facilities Management
•Business Travel and Transportation
•Green IT
New Products &
Revenue Streams
•Green product marketing
•Supply chain partnerships
•Value Chain management
•Product / Service Innovation and Redesign
Fully Integrated into corporate strategy
•Green technology &
new investment opportunities
•Carbon markets &
emissions trading
•Research &
Development
•Green Jobs
•Green characteristic Investment appraisal (M&A)
•Industry & Across Industry Collaboration
•Advocacy and Industry Leadership
Complexity & Cost
Return
Internal
Vertical
Horizontal
The first two levels of Figure 7-2 shows a spectrum of internally-focused climate change response initiatives ranging from carbon and water foot printing; communication; education and training programmes in order to raise awareness on the subject of climate change; efficiencies
in materials, energy and water and behaviour modification on reducing, reusing and recycling.
The major preoccupation is on understanding climate change impacts on business, establishing the baselines and mitigating or adapting as necessary.
While both companies in the study are working on initiatives across the spectrum, ATNS‘s current emphasis is on level 1 initiatives, i.e. the Raising Awareness level. This is understandable given the fact that ATNS‘ Sustainability and Climate Change Strategy was only crafted in 2011 in response to the formalization of the aviation industry commitment to fighting climate change in late 2010. As Figure 7-3 show most of ATNS‘ climate change response initiatives show the infancy of the phenomenon in the organization.
Figure 7-3 ATNS' Climate Change Response Initiatives
Raising Awareness
•Footprinting
•Awareness / education
•Behaviour modification
•Public relations / Reporting
•Understanding GHG/CO2
•Community involvement
Adaptation &
Operational Efficiencies
•Energy efficiency
•Material or resource efficiency
•Waste management
•Water Management
•Business operations redesign
•Facilities Management
•Business Travel and Transportation
•Green IT
New Products &
Revenue Streams
•Green product marketing
•Supply chain partnerships
•Value Chain management
•Product / Service Innovation and Redesign
Fully Integrated into corporate strategy
•Green technology &
new investment opportunities
•Carbon markets &
emissions trading
•Research &
Development
•Green Jobs
•Green characteristic Investment appraisal (M&A)
•Industry & Across Industry
Collaboration
•Advocacy and Industry Leadership
Complexity & Cost
Return
Benefits Tracking, Monitoring & Evaluation, Reporting
Program/project Management, Change Management
Policies, Procedures & Processes – Continuous Improvement
In both organisations, some of the executives interviewed showed a lack of understanding of the drivers, the current and planned initiatives or the general roadmap and climate change response strategies in their respective organisations. This serves to underscore the importance
of making climate change response an organization-wide initiative and not something driven by a few executives, some department or some enthusiasts. The need for raising awareness and creating internally-focused educational and awareness programmes cannot be over- emphasised.
Figure 7-4 Tongaat Hulett’s Climate Change Response Initiatives
Raising Awareness
•Footprinting
•Awareness / education
•Behaviour modification
•Public relations / Reporting
•Understanding GHG/CO2
•Community involvement
Adaptation &
Operational Efficiencies
•Energy efficiency
•Material or resource efficiency
•Waste management
•Water Management
•Business operations redesign
•Facilities Management
•Business Travel and Transportation
•Green IT
New Products &
Revenue Streams
•Green product marketing
•Supply chain partnerships
•Value Chain management
•Product / Service Innovation and Redesign
Fully Integrated into corporate strategy
•Green technology &
new investment opportunities
•Carbon markets &
emissions trading
•Research &
Development
•Green Jobs
•Green characteristic Investment appraisal (M&A)
•Industry & Across Industry
Collaboration
•Advocacy and Industry Leadership
Complexity & Cost
Return
Benefits Tracking, Monitoring & Evaluation, Reporting
Program/project Management, Change Management
Policies, Procedures & Processes – Continuous Improvement
For reasons stated under ATNS‘ initiatives, there is still merit in the company working on Raising Awareness initiatives. This was evident particularly with newer members of the executive team who did not seem to be conversant with most of the initiatives currently underway particularly in the Operations Department.
Vertically Focused
The third level of Figure 7-2 shows a spectrum of vertically-focused initiatives where the emphasis is on creating new products, finding new revenue streams from green initiatives and finding ways of collaborating across industry supply chains. Smart companies are finding opportunities to redesign their products and services, and marketing those to green-conscious
consumers and buyers. They are also designing completely new products and services for new uses and users. Others are finding opportunities for conditional cooperation and reciprocity (Brekke & Johansson-Stenman, 2008; Gatcher, 2007; Dannenberg et al., 2007) up and down their local, regional or global supply chains realising significant greenhouse gas emission reductions and competitive advantage.
Horizontally Focused
The fourth and final levels of Figure 7-2 is where entrepreneurial companies are finding opportunities to fully integrate climate change response into their businesses by looking horizontally partnering with competitors, non-profit organisations (NPOs) and across industries to participate in low-carbon technologies, carbon offsetting, green jobs and other initiatives that move them towards zero emissions while creating significant competitive advantages.