With the UN Climate Conference underway, business leaders now take center stage. A recent New York Times OP-ED, Business Leaders, the Planet Needs You, provided some interesting data on American business and their commitment to environmental responsibility. The author, George Kell is the executive director of the UN Global Compact, a UN initiative aimed at urging businesses to take up socially responsible policies and practices.

According to the Times data, “A study of American companies provides an alarming analysis. Of the largest 1,000 U.S. companies by market cap, only 8.4% have stated environmental policies that address emissions of greenhouse gas.” They do cite regulatory uncertainty as a contributor to the reluctance of businesses to fully commit themselves to environmental responsibilities.

More data suggests that, “A recent analysis of the 300 largest global companies by market capitalization reveals a high level of unmitigated climate change risk.” Kell went further with his analysis.  “Of the companies in this group that have high carbon footprints, 60 percent have not set long-term emissions targets, while 80 percent have not disclosed targets related to the climate impact of their products.”

There is also a feeling that those “entrenched” in carbon heavy industries will not change, but there is hope for industry “fence-sitters”, or those unwilling to commit to or against climate change regulations. Kell lays a framework for convincing the fence-sitters to hop over to the greener side of the debate.

Kell’s framework is outlined below:

1) “climate change is the test of business leadership in the 21st century;

2. the future of the global marketplace hangs in the balance;

3. addressing climate can trigger an era of sustainable prosperity;

4. transformation is possible and viable; and

5. climate change is an urgent ethical issue for the broader role business in society.”

Kell makes a great point and it is this – businesses drive our economy. If our economy is to become more viable through environmentally sound practices and sustainability, like promoting energy efficiency to thwart climate change and save wasted money and resources, then business leaders MUST work to convince their counterparts that NOW is the time to act responsibly. The benefits are almost always understated: creating a sustainable future for generations to come, saving wasted energy (means saving wasted money), and, most importantly, being leaders for the rest of world.