Climate change is a long-term, global challenge that can be addressed by starting today with practical, cost-effective actions. Carbon dioxide and other greenhouse gases are emitted into the air from every sector of economic activity, and each year these emissions continue to rise. As they accumulate in the atmosphere, greenhouse gases increase the risk of adverse impacts from climate change.

In the near term, taking steps on a manageable scale will move society along a path toward stabilizing the concentrations of greenhouse gases. The sooner these steps are taken, the quicker they will allow us to get a handle on emissions before they rise too far and too fast. In this way, sensible action today allows for more options and flexibility in making a gradual and stable transition to lower carbon emissions. In particular, we need to spur technological progress across various sectors. Time will be needed before research and development gives way to the full market uptake of new technologies, yet experience with technological advances at the end of the twentieth century offers positive signs that new ideas can be developed quickly and that costs will fall as those ideas are applied.

Businesses have a role to play in bringing about technological solutions to climate change.  Business has the resources and focus on innovation to drive a clean energy future, and its global reach and marketing can help deploy new technologies on a large scale. Companies are practical in nature, using research and  experiments to test new ideas in commercial markets. Businesses also take risks, often making decisions without perfect knowledge and then learning, adapting, and developing new information and ideas as they go. Successful companies understand what it means to lead. In this spirit, businesses have much to contribute toward dealing with climate change.

Many companies have had experience with  lowering emissions and have identified instances where the reductions can be achieved in a cost-effective manner. Companies have also devised new management systems and new products that help reduce  emissions. Businesses need to continue to develop and share this information so it can be broadly implemented.

The goal of developing and sharing knowledge on greenhouse-gas emissions is the primary driver of the Climate Northeast initiative. Our group of partners— nine corporations based in the Northeast and the World Resources Institute—came together to learn, to share practices, to keep abreast of the many facets of the climate change issue, and to find new opportunities. The initiative has allowed us to create a network of peers that support communication and the  transfer of ideas. We wrote case studies, explained our emissions management systems and challenges, and looked for innovation. We also considered market and policy developments, including growth in markets for renewable power and the emerging market for tradable carbon emissions credits. We sought to understand what other companies are doing and the benchmarks being set for progressive corporate action on climate change. Through this work we have been able to gain support for emissions reduction projects and leverage diverse corporate initiatives to advance our environmental goals.

There are many benefits that individual companies can gain by taking action on  greenhouse gas emissions. Businesses can become more efficient and reap financial returns while lowering emissions at the same time. Companies can also position themselves to be successful in a carbon-constrained world and capture new markets for products and services. In this way, businesses identify paths to growth while minimizing the risks they face from changes in the economy, markets, and public policy. Also, at a time when there is much discussion about using  marketbased policy to addressing emissions, the private sector can lead in demonstrating the use of these mechanisms. By ensuring that markets are structured to be efficient, flexible, and responsive to business needs, companies can help build the framework in which they will thrive.

Forward-thinking companies can be proactive on climate change in a manner consistent with growing their bottom lines. Business leaders recognize that taking action on environmental issues is more than being a good corporate citizen; it is also good business.

Businesses alone cannot solve climate change, though. Consumers and policy makers also have roles to play. Consumers need to understand how their actions drive emissions and how they can be a part of the solution. Policy makers need to provide credible incentives for innovation and clear signals that reduce uncertainty so businesses can invest their time and resources with confidence.

At a time when state, regional, and national policy proposals are moving in different directions, policy makers should strive to harmonize their efforts wherever possible to promote maximum efficiency. Consensus has not yet emerged on  comprehensive legislation to address climate change, yet policy makers could foster  agreement between government and the private sector under which businesses commit to reductions in return for credits against future requirements. Proactive companies should not be penalized for reducing greenhouse-gas emissions. On the contrary, early actors should be encouraged by clear policies that ensure their work to reduce emissions will be rewarded. Such an approach would give businesses the confidence to invest resources in reductions and help to jumpstart a market-based trading system for carbon. Though there is no single solution to climate change, longterm success will be achieved by integrating the most effective measures that are proven through experience.

In the Northeast, companies want to operate in a region where policy makers are partners in finding solutions to climate change and where there is cooperative and constructive  engagement with all stakeholders. The partners in the Climate Northeast initiative operate in different sectors and in different countries, and have useful experiences and knowledge to build upon.

In A Climate of Innovation: Northeast Business Action to Reduce Greenhouse Gases, the World Resources Institute draws on the combined experiences of the partners and the activities taken under the Climate Northeast initiative to provide a framework for corporate action on climate change. We hope it will be useful for other businesses getting started with greenhouse-gas management programs and will help inform policy makers about the  opportunities and constraints businesses face in moving forward with climate change solutions.

Susan Voigt
Vice President, Environment, Health and Safety and Corporate Product Quality
BRISTOL MYERS SQUIBB COMPANY

Joseph Sprouls
Global Head, Corporate Realty Services
CITIGROUP

Randolph Price
Vice President, Environment, Health & Safety
CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

R. Hays Bell
Director, Health, Safety & Environment
EASTMAN KODAK COMPANY

Stephen Ramsey
Vice President, Environmental Programs
GENERAL ELECTRIC

Brian K. Boyd
Vice President, Worldwide Environmental Affairs
JOHNSON & JOHNSON

Jean M. LaVecchia
Vice President of Human Resources and Environmental Services
NORTHEAST UTILITIES SERVICE COMPANY

Al Forte
Assistant Director, Environmental Affairs
PFIZER

Mark Buckley
Vice President, Environmental Affairs
STAPLES

Jonathan Lash
President
WORLD RESOURCES INSTITUTE