The Psychology of the Business Brain

Jonathon Porritt, speaking at Cardiff Business Club - March 2008

Jonathon Porritt presented to a packed audience at Cardiff Business Club on the 10th March 2008 explaining that addressing climate change issues really does fit in with the psychology of the business brain.

Citing the Stern Report, which states that climate change is the “biggest market failure the world has ever seen”, Jonathon went onto explain that in fact, climate change is an opportunity that presents real business opportunities, with investment in clean technologies in 2007 reaching a massive $140bn, which was driven by regulation. Jonathon reminded the audience that they need not be afraid of regulation to help address climate change.

"It is a myth that business is hostile to regulation. Regulation is the bedrock for innovation and will enable new business opportunities to be realised. Businesses are demanding more regulation so they can justify spending money on addressing climate change and the business opportunities it presents. Indeed, some businesses in the USA are already lobbying for the government to regulate for emissions reduction so they can justify using shareholders money for this area".

Jonathon put forward his view that government needs to set a price for carbon which fully reflects the seriousness of climate change and make alternative technologies competitive with fossil fuel based technologies. Once this price of carbon is set, the cost of carbon needs to be internalised into everything.

Referring to the impact of Pearl Harbour on the US economy, when one year the USA was put on a war footing and 90% of its industry was ordered to produce products needed for war, Jonathon explained that this demonstrated that large scale change can happen.

"All businesses need to do what entrepreneurs and successful business do best and that is to have a can-do approach and a positive perspective, whilst remembering that the old business model is dead, sustainable development is no longer an add-on, but an integral part of the mainstream business model”.