Business leaders need to be clear that there should be dual motivation for going Green : profit and sustainability.  There is no need for pretense to sainthood or being the planet's saviour; in fact, that position is ill advised, as it can have unintended consequences.  Profit and sustainability are necessary and worthy goals when pursued together.  Ultimately, companies should be thinking about competitive advantages enabled by taking a leading position on sustainability in their sector, such as the opportunity to drive or influence government regulatory agendas. 

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If anyone still doubted that the valuation of environmental risk, including risk related to climate change, should be considered material to a company’s financial performance, the Ontario Securities Commission (OSC) recently set the record straight with its Staff Notice 51-716 on Environmental Reporting.  The notice states that company disclosure on environmental liabilities, asset retirement obligations, financial and operational effects of environmental protection requirements, environmental policies and environmental risk, is currently inadequate and that a higher standard is required.

This is good news for a range of stakeholders in the environmental industry, including environmental regulators, lobbyists and believers in true cost accounting. It signifies one more step toward valuation of the environment, following the lead provided in recent years by carbon trading. It is also good news for investors, other than those holding shares in companies with significant potential liabilities!

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This week Ethical Corporation lauded “15 individuals from business, politics and civil society who have done most to push forward the case for responsible business in 2007” www.ethicalcorp.com/content.asp?ContentID=5561&newsletter=24 .

At what position on this list would we find the CEO of RioTinto Alcan, after his comment in late October on the consequences of governments who may favour absolute standards for greenhouse gas emission reductions over intensity-based standards:

"If you look at absolute reductions as a solution, the likely consequence is you will drive growth of aluminum production offshore and potentially to other jurisdictions that do not have the same environmental standards, do not have the same commitment to greenhouse gas reductions.'' http://news.therecord.com/Business/article/261435

Likely not very high....this type of comment is reminiscent of the “jobs vs the environment” veiled threats made by industry 30 years ago, in reaction to initial government regulation of the environment - and somewhat surprising for a sustainability leader like Alcan.

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