Nov. 26, 2007 Companies will have fundamentally to change their business models to meet consumer needs in a carbon-constrained world, according to a new report published by 18 of the U.K.'s largest firms.

The Confederation of British Industry (CBI), a top business lobby including BP, Tesco, and British Telecom, commissioned the report to assess the challenges and opportunities associated with climate change.

The report stresses that alongside the risks, the shift to a low-carbon economy offers the chance to develop innovative environmental technologies for global markets. Within the report, CBI member companies commit to developing new products and services that will enable households to cut their emissions 50% by 2020.

"This report makes clear that in the future, businesses will have to be green to grow," says CBI director-general Richard Lambert. "To manage their costs and to maintain the trust of their customers, they will need to build carbon management into their corporate DNA."

The companies also pledge to work with employees to lower emissions both at work and at home, with the goal of saving one million metric tons of CO2 emissions within three years.

The CBI cautions that though British business is ready to "do what it takes," climate change must become a priority for consumers and the government as well.