Climate change and productivity
Indeed, the effects of climate change are irreversible, according to the UN report, which is a moving blow, as was pointed out a few days ago. However, it is an opportunity for improvement for Chile not only because of the ethical responsibility that corresponds to each company, but also because considering the effects of production on climate change is good business.
Companies use the environment to create value and build competitive advantage and must do so efficiently and with adequate returns. It was already pointed out in 2006 by Daniel Estay and Andrew Wilston, in Green to Gold.
Today decisive action is an obligation, and the path is productivity, because it enables less use of natural resources, with the consequent care for the environment. Maximizes the use of resources, so sources of loss are reduced. For example, mining is reducing the use of water resources, in the face of drought and scarcity and being more productive, they use their same equipment for less time.
Conversely, if this aspect is not considered in the industries, and we continue along the same lines, Chile will lose up to 28% of its GDP by 2050 due to climate change, impacting the level of poverty and inequality, as warned by the Swiss reinsurer Swiss Re.
For this reason, the new operating dynamics must be accelerated. Our country is rich in natural resources, so it is imperative to focus on businesses that improve productivity and promote investment and sustainable development, in line with the health of the environment and the economy, and considering the human side of productivity, with salaries according to performance and transversal trades that are truly a contribution to business performance.
It is necessary to professionalize this transit, integrating the different levels with innovation and a long-term perspective. Several of the main companies in the country are already working on it in the mining, sanitation and aquaculture areas, even capturing value in the midst of the pandemic.
Francisco Ortuzar
Orca Business Consulting Partner
Original Text in Radio Cooperativa