Climate Change and its Impact on Business

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Climate Change and its Impact on Business

• Intelligence for Business b.v.
• Naim Kenan Hacievliyagil

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Agenda

• Introduction
• Status Quo
• Impact on Business
• Policy ?? Resources ? Business
• Policy ?? Economics ? Business
• Policy?? Behavior ? Business
• Wrap up
• How de we help clients
• Basis of our approach
• How to help managerial decisions
• SVS Approach
• Discussion

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Introduction

• World has a threat
• Business has a challenge
• We propose a perspective
• Discussion Economical system and threat

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Introduction

• Company Introduction
• Intelligence for Business b.v.
• (The Netherlands, Veenendaal)
• Program Management
• Project Management
• Clear Emphasis on SCM and Logistics
• Sustainability Services
• Customers

• Shell
• BASF
• DSM
• Rockwell Automation
• Friesland Foods
• ASML
• Corporate Express
• Philips
• TU Delft

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STATUS QUO
26 B
90 B
100 B
Approximately 15 in excess of Natures regular
annual CO2 intake capability
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STATUS QUO
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STATUS QUO
a particular community of people living in a
country or region, and having shared customs,
laws, and organizations
CLIMATE
SOCIETY
Political Structure POLICY
BEHAVIOR
RESOURCES
?
ECONOMICS
PARADIGM CHANGE
THE COMPANY
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Agenda

• Introduction
• Status Quo
• Impact on Business
• Policy ?? Resources ? Business
• Policy ?? Economics ? Business
• Policy?? Behavior ? Business
• Wrap up
• How de we help clients
• Basis of our approach
• How to help managerial decisions
• SVS Approach
• Discussion

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IMPACT on BUSINESS
POLICY
BEHAVIOR
ECONOMICS
RESOURCES
VALUE
COST
THE COMPANY
INPUT
OUTPUT
PROFITREVENUE-COST
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IMPACT on BUSINESS
Less dependency to oil exporters (Russia, Middle
East etc.)
POLICY
Subsidizing Green
BEHAVIOR
ECONOMICS
RESOURCES
Depleting resources
Internalization of Externalities
Consumer Behavior B2B Relations Investor Behavior
THE COMPANY
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IMPACT on BUSINESS
Even leaving aside climate change, we will be
living a carbon constrained world because
Less dependency to oil exporters (Russia, Middle
East etc.)
POLICY

• Policies
• national security
• reducing reliance on imported oil
• Rising oil prices with rising demand from
  emerging economies
• Water as a raw material

RESOURCES
Depleting resources Increasing demand
THE COMPANY
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IMPACT on BUSINESS

• ETS
• Main Pillar of EU Climate Policy
• Cap and Trade System
• Innovation
• Member State National Allocation Plans
• Industry level? company level allocation
• Phase II started
• More countries
• More industries
• CDI and JI in the scope
• U.N. Framework Convention on Climate Change

• Kyoto Protocol
• EU Climate Policy / EU Energy Policy
• Target
• 5.5 below 1990 by 2012 (Kyoto target -8), and
• 6.7 below 1990 by 2020
• Approach Internalization of Externalities
• European Emission Trading Scheme
• Taxes, charges etc. (Road charging)

POLICY
ECONOMICS
THE COMPANY
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IMPACT on BUSINESS

• Subsidizing Green
• i.e. Tax Reduction for Hybrid Cars
• Internet Equipped NGOs, savvy consumers and
  activists
• on lookout of company transgression
• communicate findings
• CO2 emission is a criteria at the procurement
  decisions
• Investors go to green
• The Carbon Disclosure Project
• Green Capital

POLICY
Subsidizing Green
BEHAVIOR
climatecounts.com ExxposeExxon.com
WalmartWatch.com
Consumer Behavior B2B Relations Investor Behavior
THE COMPANY
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IMPACT on BUSINESS

• WRAP UP
• Being sustainable is a source of competitive
  advantage now
• More Value
• Less Cost
• There is no tension between sustainability and
  efficiency anymore
• Carbon related charges/taxes and oil prices can
  change the business structures deeply
• Hot topic Corporate Social Responsibility
• Sustainability
• Social Awareness
• Responsible Investing
• Labor Rights
• Animal Rights

POLICY
BEHAVIOR
ECONOMICS
RESOURCES
VALUE
COST
THE COMPANY
INPUT
OUTPUT
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Agenda

• Introduction
• Status Quo
• Impact on Business
• Policy ?? Resources ? Business
• Policy ?? Economics ? Business
• Policy?? Behavior ? Business
• Wrap up
• How de we help clients
• Basis of our approach
• How to help managerial decisions
• SVS Approach
• Discussion

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HOW DO WE HELP CLIENTS?

• Basis of our Approach SVS
• CO2 footprint is essential
• Examining the impact of macro-economical changes
  on micro-economical elements
• Help to develop strategy
• Help to deploy it through
• Programs
• Projects
• Develop KPIs for reduction

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HOW DO WE HELP CLIENTS?

• Basis of our Approach
• CO2 footprint model developed
• Help to examine CO2 emission over a Value System
• Identify associated cost burdens and changes on
  cost structure
• Support Managerial decisions

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HOW DO WE HELP CLIENTS?
Approach
How we can support managerial decisions (1)
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HOW DO WE HELP CLIENTS?
Approach
How we can support managerial decisions (2)
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HOW DO WE HELP CLIENTS?

• SVS APPROACH
• What is SVS (Sustainable Value System) Approach?
• System perspective
• Do not optimize every part in a value chain
• Optimize complete system
• Cost minimization and Value Maximization
• The first step of SVS approach
• Quantify environmental impact of the value system
• Position you on the system
• Predict shifts on the value system
• Prepare for next steps

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HOW DO WE HELP CLIENTS?

• FIRST STEPS at SVS

VALUE SYSTEM
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How to quantify this impact?
VALUE SYSTEM
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How to quantify this impact?
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How to quantify this impact?
CO2 RELATED COSTS

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Agenda

• Introduction
• Status Quo
• Impact on Business
• Policy ?? Resources ? Business
• Policy ?? Economics ? Business
• Policy?? Behavior ? Business
• Wrap up
• How de we help clients
• Basis of our approach
• How to help managerial decisions
• SVS Approach
• Discussion

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Discussion

• Can the followings save the world?
• SVS, Internalization of Externalities, Cap and
  Trade Systems, Energy Revolution, Carbon Taxes,
  Technology
• The Great Global Warming Swindle
• "the biggest scam of modern times
• Globalization and Global Warming
• Is there a link?
• (Consumption Culture, Consumer Capitalism)

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Further Reading
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Thanks for Listening

• Any more question?