Researchers at the University of Sydney Business School say a lack of political consensus, and a series of extreme weather events have forced global businesses to engage with climate change as a key strategic risk.
Corporate initiatives around climate change is the focus of an international symposium to be held at the business school this week.
Business school professor Christopher Wright said the event is enitled Climate Change: Generating Business and Organisational Responses.
"Despite the widespread scientific consensus, ideological rhetoric dominates the global debate on climate changes and this is preventing the development of the clear policy companies need for long term investment," he said.
"In spite of this, there are signs of significant progress at the international and national corporate levels.”
For example, Professor Wright cites the development of new “green” products and services such as hybrid and electric cars, high capacity batteries, wind turbines, solar cells and more efficient jet engines.
Moreover, major financial institutions now include "carbon risk" in their lending practices and mark down enterprises that fail to manage these risks.
"Virtually every company in the construction sector offers green construction materials; energy companies are diversifying into renewable electricity generation and insurance companies now focus explicitly on the physical and financial risks of more frequent and intense storms, floods and fires," Professor Wright said.
One of the conference speakers, Andrew Hoffman, Professor of Sustainable Enterprise at the University of Michigan in the United States, adds that many of the world's major companies are now seeking to mitigate carbon emissions and adapt to changing markets and "the physical consequences of climate change."
However, Professor Hoffman, also warns that in the longer term, corporate innovation requires a clear regulatory structure to thrive and prosper
The event which is taking place at the University of Sydney from Thursday, March 21, 2013, features a range of speakers including John Dryzek of the Australian National University, Matthew Bell of Ernst &Young and Emma Herd of Westpac.
