3 minute read
Jim Fitzpatrick
Columnist
Jim Fitzpatrick,
Journalist and Broadcaster
Weathering the storm
Journalist and broadcaster, Jim Fitzpatrick looks at how businesses are approaching climate change and the disconnect between Europe and the US on this issue.
The relentless rain arriving from the Atlantic this winter and the misery it has inflicted on many communities suffering the effects of flooding has reminded us all of the growing impact of climate change.
The scientists are developing ever more accurate models to understand and predict these new weather patterns. The current phenomenon of wet weather is likened to airborne rivers that are carried across the ocean by the Jetstream. The warmer air allows for greater quantities of moisture to be held before it is dumped on land with devastating effect.
A few months earlier we had the horror of the Australian bush fires with apocalyptic scenes of residents fleeing to beaches trapped by fires on all sides, awaiting rescue by boat or helicopter. And before that it was the spectacle of the Amazon on fire – the lungs of the earth clogged in flames and smoke.
All of this presents a huge challenge to humankind and our political and economic systems. And for business it presents choices that are both moral and commercial.
The moral choice is to do the right thing for the sake of all stakeholders, not just the shareholders. The commercial choice is to amend business practices to adapt to the changes, but also get ahead of the game and the inevitable laws and consumer pressure that will ultimately put environmental vandals out of business.
To some extent we are now seeing the moral and commercial pressures converge – the climate crisis has grown so acute that major boards of major companies no longer distinguish between the two. Good environmental policy isn’t just good business practice, it’s obvious commercial sense and can even provide competitive advantage.
Some of the innovators in this regard are to be found in surprising places. Oil giant BP has just committed itself to shrink its carbon footprint to net zero by 2050. An oil company promising zero net emissions!
To achieve this ambitious target BP will have to cut more greenhouse gas emissions every year than the amount produced by the whole of the UK.
Perhaps unsurprisingly this approach isn’t universally adopted across the energy industry, though there are a surprising number of others who also have ambitious climate policies. Just as we’ve seen in politics with President Trump’s withdrawal from the Paris Climate Agreement, a schism is growing in the industry between Europe and the US.
BP’s new policy has caused it to cut links with three US-based trade associations, because of fundamental disagreements over climate-related policies and approaches. In fact, in withdrawing from the American Fuel and Petrochemical Manufacturers, BP is following in the footsteps of Shell (Netherlands) and Total (France).
BP’s new Chief Executive Bernard Looney was unrepentant: “BP will pursue opportunities to work with organisations who share our ambitious and progressive approach to the energy transition. And when differences arise we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.”
So, the wet weather may be arriving in Europe from the direction of the US and via the Atlantic, but it seems European business is determined to make its own weather when it comes to policy and business practice on the biggest issue of our age.
Once the skies opened, so too did our world
We have come a long way since our first flight in 1940. Thank you for coming on this journey with us.
