Last month, Dan Kreeger was in town to talk about just that. He is co-founderand executive director of the Association of Climate Change Officers (ACCO), agroup of environmental executives of major Fortune 500 companies includingFedEx, Bayer and Applied Materials. Together with the University of Michigan,ACCO held an executive education course to help local and multinationalcompanies create strategies that focus on climate-related changes in the marketand public policy.

Here are some of his thoughts on how companies, communities and more aremaking climate change profitable. Maybe Detroiters can find some gold at the endof this rainbow.

Modernizing the Workforce: A Look at HowIndustry is Addressing Energy and Climate Change in a Tough Economy
By Daniel Kreeger, Executive Director, Association of Climate ChangeOfficers

As corporate America digs out of one of the most significant recessions inAmerican history, a wealth of significant risks and opportunities lie aheadrelated to managing energy consumption and greenhouse gas emissions.  Energycosts are on the rise, and at some point, presumably, a Federal greenhouse gasregulatory regime will be passed by Congress.

However, industry need not wait for a milestone in that regard.  I amfrequently asked whether I believe that climate change is real — my answer isalways quite simply, “the business case for responding to climate change andenergy considerations is here … now.”  In fact, one could argue that industry isdecades past due for a complete overhaul in how business is conducted,professionals are educated and trained, management is structured and how energyand environmental considerations are factored into the business bottom line.

In the past few decades, extraordinary changes have taken place in areas thathave an enormous impact on business considerations.  Those include:

• Technology – Developed and emerging technologies in the areas of computing, the Internet and renewable energy alone are so significant that they fundamentally alter the opportunities (and risks) of any business.
• Cost and Availability of Natural Resources – The volatility of oil prices in the past few years are a reflection of how a wide range of factors (natural disasters, war, increasing demand due to rapidly developing nations, droughts, etc.) can make sourcing incredibly chaotic.
• National Security – The increased threat of terrorism, wars in the Middle East and other national security considerations related to countries who are funded by international dependence on oil have led numerous high-ranking defense officials to conclude that energy independence must be a priority for the United States.
• Environmental Impacts Related to Climate Change – Our understanding of how climate change is already and will continue to impact us is changing by the day.  While there continues to be a large percentage of the population that is skeptical about the published findings related to climate change impacts, basic risks assessment principles should necessitate developing sophisticated mitigation and adaptation strategies.
• Investor and Stakeholder Forces – An unprecedented surge in pressure from investors and stakeholders of corporations (e.g. Carbon Disclosure Project, Walmart's supply chain initiatives, President Obama's Executive Order 13514 to Federal agencies on sustainability, etc.) require a company to assess the market risks of ignoring energy and climate change considerations.
• Evolving Markets – Businesses and government are greening their supply chains.  Walmart and President Obama's Executive Order No. 13514 exemplify the challenges and opportunities for industry in this respect.  Are you going to be able to supply these potential clients, or will you miss out to the competition who can prove they're “greener” than you?  Additionally, there's unprecedented policy support – and stimulus money – geared toward moving toward a clean energy (and greener) economy: these efforts are helping to create new markets and moneymaking opportunities.

To address some of these considerations, industry leaders are increasingly trying to augment their current governance and operational approach by addingcapable professionals to their teams.  However, most companies have not madesignificant changes to governance structures, education and training for middleand senior management, or how their middle management and executives engage oneanother.

Read more at:
http://detroit.blogs.time.com/2010/06/09/unfiltered-dan-kreeger-on-a-changing-environment/#ixzz0qNcL8wBb