Financial Gain with Climate Change
The issue of global warming and climate change has become an important consideration, the world around. From environmentalists to corporate companies, everyone is debating about the noxious impact of human activities on the environment. Organizations are spending millions of dollars in order to ensure that their carbon footprint does not become a cause for outrage amongst the environmentalist groups. Larger amounts of money are expended to edify people about the effect of global warming and what they might do to rectify it.
Campaigns and rallies are held to oppose and challenge global warming and its causes. Despite this whole propaganda, some still argue that global warming is a myth altogether. Certain people dispute the entire phenomenon of climate change claiming that it is simply a socio-political and financial issue, raised by environmentalists looking for publicity and fame and corporations seeking to make big bucks from the whole affair. Some scientists have gone to the extent of collecting data and proving that global warming is in fact a fabrication, a deception.
Regardless of the truth behind the notion of global warming, what cannot be refuted is the fact that a number of people, companies and manufacturers stand to gain from the subject matter of climate change. Politicians and governments employ it as a means of obtaining the support of environmental enthusiasts and to gain political ground. Ecologists and environmentalists use it to further their own agendas. And corporations utilize the issue for the purpose of their own commercial gain.
As noted by the World Resources Institute’s Capital Markets Research Team, along with the Citigroup Investment Research, in the report, “Investing in Solutions to Climate Change”, While there are companies that will suffer from climate policy changes, there are companies that will benefit as well. Someone must sell the products and services that will help companies meet, say, emissions targets should they become law; and companies are clearly responding to perceived public demand that they address environmental issues (qtd.
in Collin). Thus, the companies that stand to financially benefit the most from the issue of climate change are the ones that will adapt to the needs and demands of the community with regard to global warming. These include small energy companies and green products companies. Smaller Energy Companies The energy production and distribution sector is ruled by a few conglomerates. One will find that there exists an element of monopoly, at least to a certain degree, when it comes to the energy industry.
These companies are involved in producing energy primarily from non-renewable resources such as coal, natural gas and fossil fuel. The pollution and harmful emissions caused by the use of these sources makes them hazardous to the environment. The concern generated by global warming has forced nations and individuals to address the importance of using renewable sources of energy. However, this transition is still in its primary stages.
“According to an Energy Information Administration 2006 profile, the total amount of renewable energy use in the US was only 7 %” (Biomechanicfuel. com). In order to procure the highest financial gain from the climate change propaganda, companies producing energy from renewable and environment-friendly sources have evolved. These companies use such renewable sources as solar energy, wind energy, water energy and other alternative fuels such as ethanol and hydrogen.
Some of the companies that have been recognized to benefit financially from the climate change trend are, General Electric, Archer Daniels Midland, Cypress Semiconductor, Hydrogenics, Waste Management and Magna International (Makower). Other companies are vying to develop and patent new and feasible fuel sources to be able to capture a major portion of the new energy market. As a result of the increasing demand for renewable energy sources, these companies tend to benefit from the climate change issue.
People, communities, governments and corporations all want to ascertain that they are not causing potential and irrevocable damage to the ecology and the climate. If these companies in the new energy market are able to harvest the required alternative fuel sources, they would gradually replace the companies engaged in producing energy from non-renewable and non eco-friendly resources. By employing innovative technologies, reducing carbon emissions and developing sustainable energy sources, these companies can increase their market share and profits and thus reap in the maximum financial gain.
Green Products Companies With the propagation of information relating to the ill-effects of greenhouse gases and the impending changes in the global climate, people are becoming more and more prone to embracing products and methods that would reduce the impact of their consumption patterns on the environment. These products are called “green products” which are commodities that are essentially more environment friendly and less detrimental to human health as compared to their traditional alternatives.
Products may be referred to as being green if they are produced from recycled items or can themselves be recycled, are manufactured using more energy-efficient methods or consume less energy, if they involve biodegradable substances, etcetera. According to a study commissioned by Green Seal and EnviroMedia Social Marketing, and conducted by Opinion Research Corporation, “half of the 1,000 people surveyed say they are buying just as many green products now as before the economic downturn, while 19 percent say they are buying more green products.
” This reveals the fact that consumers are opting for the “greener” alternatives even in spite of the recession and the fact that green products tend to cost more. Various companies have introduced green products in order to exploit this trend of green product purchasing. Since green products can include anything from appliances to food, from building materials to vehicles, green products manufacturers are looking to make it big and cash in on the climate change quandary. For instance, manufacturers of electronics are guaranteeing lesser energy consumption by the appliances and devices produced by them.
Further, they also allow consumers to return old electronic devices to be recycled or disposed off in the safest manner possible. Similarly, companies producing such articles as cleaning agents are promising non-toxic and non-hazardous ingredients to entice consumers. Companies are also engaging in the advancement of technologies to allow farmers to produce more with lesser consumption of energy and other resources. Car manufacturers are competing to produce the most fuel efficient vehicles with low emissions.
Moreover, car companies are also developing automobiles that can run on electricity, hydrogen or other non carbon emitting compounds. According to a study conducted by RiskMetrics Group, a risk management services company, the top five “green companies” are 1. IBM Corp 2. Dell 3. Intel 4. Johnson & Johnson and 5. Nike. These companies have successfully adopted greener technologies and innovations in order to not only benefit the environment, but also benefit the company itself by enhancing investor confidence and improving profitability.
“Where the cost of implementing green initiatives was once the main barrier to change, now ROGI: Return on Green Investment is one of the main drivers for a corporate change of attitude and practice” (EyeForTransport’s Green Transportation & Logistics Report 7). Doug Cogan, director of climate risk management for RiskMetrics Group states that Companies that seize the initiative can gain market share, build investor confidence and insulate themselves against future energy shocks and climate change regulations.
It’s simply smart business to employ these governance practices today (qtd. in Blanchard 1). Therefore one might conclude that the climate change crisis has provided an opportunity for companies to take advantage of the concern and apprehension generated by emissions of greenhouse gases and global warming. Renewable and eco-friendly energy sources and green products and services not only gather more support from environmentalists and governments, but also exhibit higher consumer demand.
Hence, companies involved in the development of these energy sources or green products stand to gain both politically and more importantly, financially from the argument of climate change. ? Works Cited “82 Percent of Consumers Buying Green Despite Battered Economy. ” Green Seal and EnviroMedia Social Marketing release 2009 National Green Buying research (2009). Blanchard, David. “Green is the New Black: Survey suggests that enviro-conscious manufacturers are the best risk for investors. ” Industry Week 1 March 2009. Dunn, Collin. “Investing in Solutions to Climate Change: Making Green by Being Green.
” 20 June 2006. Tree Hugger: A Discovery Company. 9 August 2010. <http://www. treehugger. com/files/2006/06/investing_in_so. php> “Green Transportation and Logistics Report”. July 2008. EyeforTransport. 10 August 2010 < http://businessassurance. com/downloads/2008/07/eye_for_transport_report. pdf> Makower, Joel. “Is Climate Change the Next Big Investment Opportunity? ” World Changing. 20 June 2006. “Why Do We Need Renewable Power? ” 18 December 2008. Biomechanicfuel. com. 9 August 2010. < http://www. bionomicfuel. com/why-do-we-need-renewable-power/Sample Essay of Paperial.com