The first far-reaching climate-change bill is headed for the Senate floor after Labor Day, heating up the debate in Congress and in corporate boardrooms about the costs and benefits of stricter environmental regulations. The Climate Security Act, spearheaded by Joseph Lieberman (I-Conn.) and John Warner (R.-Va.), would reduce greenhouse emissions 65% by 2050. The Chamber of Commerce is campaigning against the bill and mandated standards, while other corporate leaders favor increased regulation because, they say, it's good for the environment and it's good for the bottom line.
It's too early to determine the outcome, but even opponents recognize the issue won't go away any time soon. The word "sustainability," code for the ability to tackle environmental, social and economic concerns and risks through automation, has become part of the corporate governance vernacular. Up to now, though, the technology hasn't been available to address these issues in a systematic way. "While most executives agree that a green strategy is a good idea, few know how to value or prioritize their initiatives," says Kimberly Knickle, practice director of IDC Manufacturing Insights. "They struggle with the business case, waiting to implement strategies until outcomes can be predicted more reliably."
In recent weeks, however, the drive to introduce tools to measure and manage the environmental impact of corporate decisions has accelerated. SAS Institute Inc., a maker of business intelligence software, recently launched widescale distribution of a decision-support software platform for proactively identifying strategies across an enterprise that measure sustainability activities, report ongoing performance, suggest ways to improve performance and manage and forecast the resources needed to achieve the desired goals.
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Cisco Systems Inc., an early adopter of the SAS for Sustainable Management software (known as SAM, for short), endorses the technology. "By partnering with SAS and using SAM, Cisco can better prioritize projects and resources that create a positive return for the environment," said Laura Ipsen, co-chair of Cisco's EcoBoard and senior vice president of Cisco global policy and government affairs, in a recent release. "The SAS solution will enable us to simulate the impact on carbon footprint and waste reduction targets, greenhouse gas emissions and other goals so we can more effectively predict and manage the impact of our operations on the environment."
Even buy-out firm Kohlberg Kravis Roberts & Co.–not known for its commitment to green causes–is getting into the act of measuring and monitoring environmental impact. In announcing a partnership with the nonprofit Environmental Defense Fund earlier this month to measure sustainability at its U.S. investments, KKR said it would work with EDF to develop analytical tools by which companies can assess and track improvements on a series of environmental metrics. The tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as greenhouse gas emissions, the use of toxic substances, waste generation and water consumption.
The jury is still out on how KKR's commitment to the "green" movement will play out and how soon, or whether, Congress itself will restrict greenhouse emissions. But the actions taken now will likely define the global warming debate for sometime to come. Meanwhile, all three presidential candidates have said they would press for global warming legislation if elected.
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