No industry is as visible and active in the climate change debate as the energy industry. Almost every day, managers are addressing the short-term and long-term implications of their policies for dealing with this issue. The authors of this article interviewed over 50 managers in 8 firms in the oil and gas industry and found that companies that address the short-term and long-term threats and opportunities of climate change can gain a significant competitive advantage
The trouble with mitigating climate change is that the benefits are uncertain and distant.1
The timing and timeframes of climate-change initiatives may be critical to business success. For example, there are opportunities to balance financial and environmental goals in the short-term — such as improving energy efficiency — which can often create an immediate win-win for firms. Yet some of the most rewarding initiatives may be those in which the payback occurs over a longer period of time. However, these long-term initiatives have benefits that are difficult to quantify, making the business case challenging.
2. Stay the course
6. Complement economic modeling with scenario analysis
Reprint from Ivey Business Journal
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