PRESS RELEASE
30 November 2007
150 global business leaders call for legally binding UN
framework to tackle climate change
The business leaders of 150 global companies have today
published a communiqué to world leaders calling for a
comprehensive, legally binding United Nations framework to tackle
climate change. The initiative represents an unprecedented coming
together of the international business community and includes some
of the biggest companies and brands from around the world,
including the United States, Europe, Australia and China. It has
been led by The Prince of Wales’s UK and EU Corporate Leaders
Groups on Climate Change, which are developed and run by the
University of Cambridge Programme for Industry. The leaders hope
that the initiative is likely to have a significant impact on the
UN climate negotiations starting next week in Bali, Indonesia.
In an article published in today’s Financial Times, The Prince
of Wales congratulates the companies for showing “remarkable
leadership” and expresses his “fervent hope” that the communiqué
“will strengthen the resolve of those gathered in Bali to make the
tough decisions the world so urgently needs”. The communiqué also
appears in full in a double-page spread in today’s global edition
of the Financial Times.
The communiqué notes that “The scientific evidence is now
overwhelming” and that “climate change presents very serious global
social, environmental and economic risks and it demands an urgent
global response”. It presents a strong business case for action by
stating that “As business leaders, it is our belief that the
benefits of strong, early action on climate change outweigh the
costs of not acting”. It notes that the costs of action are
manageable but that each year of delay will result in greater
disruption. The leaders also state that “The shift to a low-carbon
economy will create significant business opportunities”.
The 150 global companies go on to argue that a “sufficiently
ambitious, international and comprehensive legally-binding United
Nations agreement to reduce greenhouse gas emissions will provide
business with the certainty it needs to scale up global investment
in low-carbon technologies”. This is significant because there is
still a debate in the international community as to whether a
mandatory or voluntary approach is most appropriate.
But most significantly, the business leaders argue that “the
overall targets for emissions reduction must be guided primarily by
science”. This is in contrast to the argument that has previously
been made by some parts of the business community that it is
concerns over competitiveness and cost that should set the limit of
emission cuts. The leaders note that evidence from the
Intergovernmental Panel on Climate Change (IPCC) already points to
a reduction being required of “at least 50% by 2050” and comment
that the “greatest effort” will need to be made by those countries
that have already industrialised.
In reference to the Bali meeting, the companies urge world
leaders to “seize this window of opportunity” and agree a
“work-plan of comprehensive negotiations” to ensure an agreement
can come into force post 2012 (when the existing Kyoto Protocol
expires).
US based companies in support of the communiqué include
Coca-Cola, Dupont, Gap, GE, Johnson and Johnson, Nike, Pacific Gas
and Electric, Sun Microsystems and United Technologies. European
based companies include Anglo-American, British Airways, F&C
Asset Management, Ferrovial, Nestle, Nokia, Rolls Royce, Shell,
Tesco, Virgin and Volkswagen while Australian based companies
include Insurance Australia Group, Macquarie, National Australia
Bank, News Corporation and Westpac.
Significantly, the communiqué has also been signed by a number
of Chinese companies including Shanghai Electric, Zhufeng
Technology and Suntech.
James Smith, the Chair of Shell UK said: "The message from the
international business community couldn't be clearer. A
comprehensive, legally-binding United Nations agreement to tackle
climate change will provide business with the certainty it needs to
scale up global investment in low carbon technologies. The cost of
inaction far out weighs the cost of taking action now. It is
crucial that, at the Bali conference, countries agree a work plan
of comprehensive negotiations to ensure a robust policy framework
is in place, to guide us forward over the coming decades."
Alain Grisay, CEO of F&C Asset Management said: “Business
and investors can only play their part in tackling climate change
if governments take decisive action to make this possible. This
problem will not get solved through market forces alone in the time
that we have left to act, because climate change presents a
textbook example of market failure. This means that voluntary
targets won’t do: business needs a level playing field in order to
take on the financial risks that adequate action on climate change
requires”.
Tony Juniper, Executive Director of Friends of the Earth,
welcomed the initiative: “The shift to a low carbon economy is not
only an environmental imperative but also an unprecedented economic
and social opportunity. Scaling up clean energy systems and using
energy more efficiently could not only slash emissions, but help to
improve the quality of life for billions of people and create
millions of jobs. Time is now short, however, and if we are to have
a good chance of cutting emissions by a sufficient amount we need
to act right away, and that is why we need a strong outcome from
the Bali talks, and that is why it is so important that so many
companies have signalled their support for governments to negotiate
a deal that is up to the task at hand”.
Polly Courtice, Director of CPI commented: "The University of
Cambridge Programme for Industry helps leaders from the public and
private sectors understand and act upon the challenges and
opportunities of sustainable development. So we are delighted to be
working through The Prince of Wales Corporate Leaders’ Groups on
Climate Change to bring together so many global companies who are
calling on world leaders to take bold and urgent action in the face
of climate change"
The Bali Communiqué is being sent direct to the 130 Environment
Ministers that will be attending the Bali conference. It will also
be handed personally to the UN Secretary General Ban Ki-Moon, who
will be attending the conference in its second week.
Editor’s Notes
1. The Prince of Wales’s UK and EU Corporate Leaders Groups have
been developed by The University of Cambridge Programme for
Industry. Members of the groups include: ABN AMRO, AIG, Allianz SE,
Anglian Water Group, AXA Insurance, BAA, BskyB, Centrica, Deutsche
Telekom AG, Enel SpA, E.On, F&C Asset Management, John Lewis
Partnership, Johnson Matthey, Kingfisher, Lloyds TSB, Philips
Lighting, Reckitt Benckiser, Schneider Electric, Shell, Skanska AB,
Standard Chartered Bank, StatoilHydro, Sun Microsystems, Tesco,
Unilever, Vodafone.
More information on the groups is available at: www.cpi.cam.ac.uk/bep/clgcc
2. The United Nations Climate Change Conference 2007 in Bali
will start on Monday, 3 December and close on Friday, 14 December
2007. The Conference will be presided over by Indonesian
Environment Minister Rachmat Witoelar, with support from the UN’s
Climate Change Secretariat (UNFCCC), headed by Executive Secretary
Yvo de Boer. The first week will involve negotiations among the
Parties at the level of high-ranking government officials on a wide
range of issues. On Wednesday, 12 December, the high-level segment
will start with addresses by the UN Secretary-General and the
President of Indonesia. It is expected to be attended by 130
Environment Ministers. More information is available at:
http://unfccc.int/
3. The Bali Communiqué and a full list of signatories is
available at: www.balicommunique.com
Press enquiries: for further information please contact
Genevieve Maul, University of Cambridge Press office 01223 332300
gm349@admin.cam.ac.uk
