The Homa Files

Excerpted from  HBR Green: “Winners and Losers in a Carbon-Constrained World”, Andrew J. Hoffman and John Woody, February 19, 2008

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We live in a fossil fuel-based economy. Any alteration in the cost of those resources–both as sources of energy and as raw materials–will alter the competitive dynamics of nearly all sectors of the economy.

And as in any market shift, there will be both risks and rewards, winners and losers. Certain industries, sectors, and companies will feel the impact more than others, but none will remain untouched.

The question to ask is whether your company has an economic opportunity to be green vis-à-vis your competitors; then you must ask how and when you can take advantage of that opportunity. 

The ultimate goal of any good business strategy is to create a measure of control over your future business environment. Consider examining the following three steps as you prepare to develop a (carbon-lite) strategy.

Know your carbon exposure — how potential changes in policy and market price will affect the positioning of your products and services in the months ahead and in the long term.

Take action. Once you know your carbon footprint, reduce it.

Influence the policy-development process. Policies will set the rules of the game and change the competitive landscape, favoring certain actions, companies, and industries.

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Some companies are adapting out of near-term operational necessity, others are acting to mitigate long-term strategic vulnerabilities, and the most forward-thinking are devising ways to profit from clean energy and efficient technology.

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Full article:
http://www.hbrgreen.org/2008/02/winners_and_losers_in_a_carbon.html

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