Focus on greenhouse gases, achieve a win-win future.
Greenhouse effect
Since the Industrial Revolution, the amount of heat-absorbing greenhouse gases such as carbon dioxide that humans release into the atmosphere has increased year by year, and the greenhouse effect of the atmosphere has also intensified (the greenhouse effect, also known as the "greenhouse effect," is a common name for the atmospheric heat-preserving effect).
In the long-term evolution of Earth's climate, greenhouse gases were of natural, not anthropogenic, origin in the early stages of climate change or in geological periods. However, with the development of human industrial activities, their main sources include the following three aspects: First, the use of fossil fuels and the emission of greenhouse gases such as CO2 increase the concentration of greenhouse gases in the atmosphere, thereby enhancing the greenhouse effect and affecting the climate. This is the main driving force of human activities causing global warming. Second, greenhouse gases such as CH4, CO2, N2O, PFC, HFC, and SF6 emitted by agricultural and industrial activities enter the atmosphere and also enhance global warming through the greenhouse effect. Third, changes in greenhouse gas sources/sinks and changes in surface albedo caused by land use changes further affect climate change. This includes deforestation, urbanization, vegetation alteration and destruction, etc.
Most greenhouse gases persist in the atmosphere for a long time; for example, CO2 can remain for about 120 years, and perfluorocarbons (PFCs) have a lifespan of about 50,000 years. This means that the emissions released today will not disappear for a century or even hundreds of centuries. According to the 2007 IPCC (The Intergovernmental Panel on Climate Change) assessment report, if atmospheric CO2 levels doubled to pre-Industrial Revolution levels, global average temperatures would rise by approximately 3 degrees Celsius, and sea levels would rise by about 10–60 centimeters. CO2 emissions accumulated since the Industrial Revolution have gradually impacted the current climate; and the unprecedented emissions we see today will not only affect future generations but also directly exacerbate our current situation. Global warming, frequent extreme weather events, and a series of other serious problems pose enormous challenges to humanity. Greenhouse gases and the greenhouse effect are directly related to human survival and development, and have attracted widespread global attention.
Research data from the Worldwatch Institute indicates that the current atmospheric CO2 concentration has exceeded 361 PPM (parts per million), 30% higher than the concentration before the Industrial Revolution when humans began burning fossil fuels on a large scale. Scientists estimate that the upper limit of atmospheric CO2 levels that ecosystems can tolerate is 550 PPM.
Faced with the challenge of the greenhouse effect, humanity recognized the need for unified global action. The June 1992 Conference on Environment and Development proposed a strategy for sustainable development and adopted the United Nations Framework Convention on Climate Change (UNFCCC). The Kyoto Protocol was adopted at the Third Conference of the Parties to the UNFCCC held in Kyoto, Japan, in December 1997.
According to the consensus reached by the international community under the United Nations Framework Convention on Climate Change and the Kyoto Protocol, the fundamental solution to mitigating global warming is global participation in controlling greenhouse gas emissions into the atmosphere, including political, economic, legal, and technological means. The Kyoto Protocol stipulated that industrialized countries must reduce their emissions by an average of 5.2% between 2008 and 2012, based on 1990 emission levels. The regulated greenhouse gases mainly include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. The United Nations Climate Change Conference adopted the "Bali Roadmap" on the afternoon of December 15, 2007 (Beijing time). The conference adopted a resolution to complete negotiations on new arrangements for climate change by 2009 and established the globally significant "Bali Roadmap" for addressing climate change.
Governments, businesses, and individuals worldwide will face significant political, economic, and daily life impacts as a result. A recent survey conducted jointly by the China Youth Daily Social Survey Center and Tencent News Center shows that among 4,834 respondents, 88.1% have already clearly felt the trend of global warming, and 84.6% believe it has become an urgent issue that the entire world must address.
The current trend of "carbon offsetting programs"—which involve consumers participating in "emissions trading" and purchasing "emission credits"—has garnered widespread attention. Many airlines, such as Lufthansa, British Airways, Virgin Atlantic, and Cathay Pacific, have already launched such programs. Businesses are also using the purchase of emission credits to become "carbon neutral" companies as a way to project a positive image and gain consumer acceptance.
Greenhouse gas risk impact
While greenhouse gases contribute to global warming, they also gradually put businesses under increasing operational pressure. It can be said that greenhouse gases represent both significant risks and challenges, as well as new business opportunities.
1. How to deal with greenhouse gases?
This not only involves the environmental risk management of enterprises, but also is an issue that needs to be considered at the strategic risk level.
2. Risks posed by climate change itself
Damage to operating facilities, forced interruption of operations due to weather factors, or delays in schedules. The snow disaster caused by the heavy snow in southern China during the 2008 Spring Festival is a typical example.
3. Legal Risks
Fines for exceeding emission targets and carbon taxes levied on energy use are looming.
On July 21, 2004, New York Attorney General Eliot Spitzer, along with attorneys general from seven other states, filed a lawsuit against several of the largest utility companies in the United States (the top five electric power companies) regarding greenhouse gas reduction.
4. Operating Cost Risk
Increased energy prices will raise operating costs.
5. Product Market Risk
Customers may boycott products that emit large amounts of greenhouse gases during production or use.
6. Market Competition Risk
Customers' greenhouse gas quantification and emission reduction requirements based on global green sourcing. Fiona Harvey, a reporter for the UK's Environment Newsletter, reported in the Financial Times London on January 21, 2008, that "many well-known brands in various industries, such as Dell, L'Oréal, PepsiCo, Hewlett-Packard, and Reckitt Benckiser, have announced that they will require some suppliers to measure and publish their 'carbon footprint,' i.e., their greenhouse gas emissions. Each company will initially select no more than 50 suppliers as pilot companies for this project, with the intention of expanding it throughout the entire supply chain. Suppliers will receive a questionnaire in the first quarter to help them calculate their emissions."
Social responsibility risks
ISO 14064 Standard Released
To quantify and reduce greenhouse gas emissions, the International Organization for Standardization (ISO) provides a standardized methodology to help organizations quantify and report their greenhouse gas emissions and address organizational greenhouse gas risks. ISO published standard ISO 14064 on March 1, 2006, and standard ISO 14065 on April 15, 2007.
ISO 14064 comprises three standards: ISO 14064-1:2006 Greenhouse gases – Part 1: Guidance specification for the quantification and reporting of greenhouse gas emissions and removal at the organizational level; ISO 14064-2:2006 Greenhouse gases – Part 2: Guidance specification for the quantification, monitoring and reporting of incremental reductions and removals of greenhouse gases at the project level; and ISO 14064-3:2006 Greenhouse gases – Part 3: Guidance specification relating to the confirmation and certification of greenhouse gas declarations. ISO 14065:2007 Greenhouse gases – Requirements for greenhouse gas confirmation and certification bodies.
Its main purpose is to reduce greenhouse gas (GHG) emissions and emissions trading, promote consistency, transparency and credibility in the quantification, monitoring, reporting and verification of greenhouse gases; ensure that organizations identify and manage greenhouse gas-related responsibilities, assets and risks; promote greenhouse gas cap or credit trading; and support the design, research and implementation of comparable and consistent greenhouse gas programs or procedures.
