We're All Connected: Taking a "Systems" Approach to Climate Change
Systems thinking is a framework that is based on the belief that the component parts of a system are best understood in the context of relationships with each other, rather than in isolation. A "systems approach" to problem solving attempts to address "problems" holistically, as parts of an overall system, and thereby avoids the trap of making the overall system worse by reacting to specific current outcomes or events in isolation.
Climate change can usefully be seen as the mother of all systems challenges. Complex and interrelated ecological processes, national interests and related policies, business objectives and practices, individual behavior, technology development -- all play their part and have profound impacts on the other elements of the global climate system.
This week's stories highlight some of the critical elements and interdependencies in this massive system we are all working to shift:
China and the U.S.: Our
feature article focuses on the critical -- and evolving -- dialog between the world's top two emitters (the U.S. and China together account for more than 40 percent of global emissions). Progress -- or the lack thereof -- will have a profound impact on domestic legislation in the U.S. and international attempts to conclude a post-Kyoto agreement in Copenhagen.
Government and business: Two items highlight ongoing efforts by government in the U.S. and U.K. to stimulate private sector development in alternative energy. The Obama Administration
published guidelines for project developers to take advantage of new tax grants representing up to 30 percent of costs in lieu of tax credits, which became less useful when the economic downturn hit. The U.K. expanded the powers and oversight of its energy industry watchdog Ofgem to deliver on the government's
renewable energy agenda.
Optimizing business performance via "The Network": JohnsonDiversey achieved 25 percent reduction of energy and emissions in transport and logistics through a suite of improvement projects and creation of a "Global Value Chain" environmental impact tool, a lifecycle analysis application that helps inform decisions related to manufacturing, sourcing and logistics. On the digital side of life,
a report on NetSuite's "software-as-a-service" indicates that customers who outsourced Enterprise Resource Planning and Customer Relationship Management software services saved a combined $61 million in energy costs annually through better utilization.
Expanded understanding of risk: The
Securities and Exchange Commission is reportedly considering whether to require public companies to tell their investors about the financial and physical risks they face from climate change. A
new report from UNEP Finance Initiative suggests that the link between fiduciary law and ESG issues is becoming strong enough that that consultants and asset manager could be sued for failing to account for them.
A final plug: Make your voice heard on the role to be played by carbon offsets in climate change strategies by participating in the
Carbon Offsetting Trends Survey 2009, a research report from partners ClimateBiz.com, EcoSecurities and Baker McKenzie.
Eric Olson is senior vice president of advisory services at BSR.
