by Andrew Laxton
Director, PPR Greater China
As the global demand for corporations to run their entire business operations in a more socially responsible manner increases, executives in Asia are now beginning to realise that true corporate social responsibility (CSR) extends way beyond charity engagement and publicity-driven cheque donations.
Over the past decade, companies that ran environmentally-friendly businesses were simply seen as making a moral and emotional connection with customers and shareholders. Being ‘green’ provided useful marketing publicity though, at the time, many viewed CSR investment as an unnecessary expense.
Not anymore. Climate change and environmental sustainability has made a quantum leap over the last 12 months, highlighted by a combination of frightening science and the formation of the Kyoto Agreement by the world’s most powerful governments committed to cutting greenhouse gas emissions.
The alarming increase in the price of oil has also forced many corporations to fast track due diligence and research on alternative fuel sources and ‘clean’ energy, while many automotive manufacturers are getting closer to mass marketing zero-emission vehicles powered by hydrogen fuel cell technology.
Astute investors already realise that there is also serious money to be made by tackling climate change. The number of hedge funds investing in renewable energy and environmental technology is rapidly increasing, so to are the number of organisations offering carbon trading programmes to measure, neutralize and cut corporate greenhouse gas emissions.
The list goes on and on but they all share one common end goal – and that is to facilitate a shift in mindset that will create a more sustainable economic and social environment for us all to live in.