In describing climate change as “the greatest and widest-ranging market failure ever seen”, Sir Nicholas Stern’s review of the economics of global warming sent a stark message to businesses everywhere. While the Intergovernmental Panel on Climate Change gathered the science and Al Gore established the moral cause for action, Stern’s review was internationally hailed for putting the challenge of climate change into terms that corporate leaders could understand. The message was clear: companies should act sooner rather than later to reduce greenhouse gas emissions. Doing so would not only be safer for the long-term future of their businesses, it would be cheaper too.

UK companies have announced a host of green initiatives since Stern’s Treasury-commissioned report was published in October last year. But not all say Stern was the key factor in those decisions.

At Cadbury Schweppes, Stern was enough to change the course of the company’s environmental policy. Alex Cole, director of corporate responsibility, says the report was used as a tool by the firm’s board and executives to demonstrate that the cost of inaction may be greater than action.

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