Climate change: six steps to prepare any business for the legal tsunami.

• Author: Holtkamp, James A.
• Position: Legal Brief

Climate change has emerged as one of the most contentious issues of the 21st century. The overwhelming majority of climate change scientists have concluded that manmade influences are a significant contributor to climate change. Governments at all levels are grappling with policy and legal initiatives to deal with emissions of greenhouse gases and adaptation to the effects of climate change. Regardless of one's views as to the science, there is a legal tsunami developing that threatens to sweep aside businesses who do not prepare for it.

But, you say, what in the world can my business do? How can my company cope with the myriad of fast-emerging and often fast-changing legal requirements dealing with emissions of greenhouse gases? The particulars of any given corporate approach will vary widely depending on the size and type of business. But you might consider some or all of the following six steps, which will allow your company to cope with regulations, reduce its carbon footprint, communicate its good corporate citizenship to its customers and shareholders, and improve its bottom line.

1 Determine Your Carbon Footprint

Figure out your actual "carbon footprint." Does your company generate carbon dioxide or other greenhouse gas emissions from its business activities? What is the carbon dioxide output from company vehicles? How much electricity does your business use? The climate change impact from all of these activities can be calculated using well-established methodologies. You can then make an informed decision as to whether to set a greenhouse gas emissions reduction goal or other climate change-related milestones for your company. Many companies include such goals in company policies on stewardship and sustainability.

2 Reduce Your Greenhouse Emissions

Think about ways to reduce greenhouse gas emissions. Upgrading or modernizing equipment or processes often results in more efficient energy use, which not only means substantial savings in energy costs but also fewer greenhouse gases emitted per unit of output. For example, changing to energy-efficient lighting and ventilation systems will reduce the emissions of carbon dioxide from the electric power plants that provide your electricity. New boilers typically use less fuel to generate the heat necessary for a manufacturing process.

3 Cash in on Incentives

Take advantage...