If you don’t like government regulation, it’s a good time to look at what your business can do to reduce your environmental impacts. Many companies across Colorado and the U.S. are doing just that, and getting a jump ahead of potential regulators.
Colorado-based ProLogis is the world’s largest owner, manager and developer of warehouse distribution facilities throughout North America, Asia and Europe. It has made sustainable development a core value and operating principle of its company worldwide. As ProLogis noted on its website, regulators in Europe, Asia and North America “are moving toward tougher standards for real estate development projects, and are requiring builders to account for carbon emissions and other environmental impacts.”
ProLogis sees this commitment as a sound business practice, reducing long-term costs even though it may be more expensive up front. Earlier this year, the company was the first real estate company in the world to join the Chicago Climate Exchange, a voluntary program to reduce greenhouse gas emissions and trade carbon credits. In addition, ProLogis publishes a yearly sustainability report, a “companion document” to its annual report.
It is holding itself accountable for its environmental impacts.
Consumers are increasingly driving economic behavior on climate change. Colorado voters mandated alternative energy use by utility companies in the state. In addition to moving forward on alternative power sources, Xcel Energy has an Energy Design Assistance consulting program, provided free of charge to eligible commercial and industrial electricity customers. The goal is to improve the energy performance of new or renovated buildings. Xcel has responded to a global need and consumer demands.
In an interview on Colorado Public Radio, Hunter Lovins, Colorado’s energy and resource management guru, talked about Wal-Mart’s plans to re-brand itself around affordable sustainability. If the world’s largest retailer takes action to reduce its negative contribution to climate change, and brand itself as a leader in mitigating global warming, you can be sure others will soon follow. When fighting global warming is good business and good public relations, it also makes good sense.
While California has usually led the way in improving environmental standards and accountability, other states have made strides as well. Two years ago, then-Gov. Bill Owens issued an executive order requiring all state agencies “to develop and implement policies and procedures to promote environmentally sustainable and economically efficient practices.” Current Gov. Bill Ritter has emphasized the importance of sustainability and conservation through the Governor’s Energy Office.
As these consumer, business and governmental trends continue to promote action on climate change, one has to wonder at the reluctance of any business or industry to leap on this train. American car companies resist increased fuel efficiency standards and are late to the hybrid game. Foreign car companies are eating their lunch.
Whenever a new coal-fired power plant is proposed, there is a huge outcry, not just from the environmentalists, but from citizens generally. The reality is we need coal to meet our huge energy needs. Managing the conflict between our desire for reducing global warming and running our air conditioners full blast would certainly benefit from strong industry leadership. Solving the problems we face rather than resisting action will be a sound investment in the long run.
ProLogis, Xcel Energy, Wal- Mart and many other companies recognize the dangers of climate change not just to their businesses, but to global society. They are acting now to reduce their own negative impacts on the environment and, at the same time, are showing us how to be successful and sustainable. They know these are sound practices for their stakeholders and the wider world.
If others follow their leadership, voluntary action will work. If not, expect governments around the world to step in and require sustainable business practices.
Gail Schoettler (gailschoettler@ ) is a former U.S. ambassador and Colorado lieutenant governor and treasurer.
