Last week's Bali Communique, in which the world's top business leaders called for a legally binding framework on climate action, has netted media attention aplenty both positive and negative. SLM climate expert Will Sarni says both sides might be missing the point.

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Is it truly significant that 150 multinationals are pushing for global action on climate? Or is the Bali Communique just an opportunity to capture brand value in advance of the widely publicized Bali meeting? The answers are yes, and yes.

First, the posturing: The actual commitments of the signatories vary widely from intensity goals to actual reduction of carbon emissions. While the communiqué provides high visibility, each company's climate commitment is only as good as its concrete carbon-reduction efforts. (But, we knew that already.)

Second, the significance: Business does well in a framework of certainty for planning purposes and managing risk. Before moving on a market opportunity, it helps to know exactly what's coming down the regulatory pike. If nothing else, the Bali Communiqué shows the extent to which the global business community is poised to capitalize in a carbon-constrained world. And that should be very encouraging news.

 

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Will Sarni is CEO of sustainability consulting firm DOMANI. He is also SLM's expert-in-residence on climate strategy and the host of Climate Management Weekly.