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Canadian execs have yet to define green strategy

By: Nestor E. Arellano, senior writer, IT World Canada(06-21-2007)

Two recent surveys have revealed that while environmental issues have been taking centre stage in the public eye lately, most Canadian business leaders have yet to clearly define a green energy strategy.

While eighty-eight per cent of Canadian C-level corporate officers do keep abreast with climate change and global warming issues, about 62 per cent of the Canadian firms surveyed do not have a plan for conserving energy and reducing its environmental footprint, a study by research firm Penn, Schoen and Berland Associates found.

The survey polled 420 senior executives in Canada, the United States, the United Kingdom and China. The cross-industry survey, conducted from March 19 to April 20, was commissioned by public relations firm Hill and Knowlton of Toronto.

The executives questioned over the phone or in face-to-face interviews are decision makers involved in IT purchases for companies with revenues of $100 million or more.

The survey revealed 86 per cent of respondents in China, 82 per cent in the U.K. and 77 per cent in the U.S. are "closely following the issue of global warming."

More than half the executives said they believe greenhouse gases contribute to global warming. About 55 per cent said environmentally friendly technologies can help reduce harmful emissions.

But 77 per cent in China, 67 per cent in the U.S. and 51 per cent in the U.K., said their companies do not have an energy strategy.

Only 35 per cent of the executives polled said their company has a specific person designated to handle energy and environmental issues.

Respondents in the U.K (80 per cent), Canada (84 per cent), China (87 per cent), and the U.S. (66 per cent) agree there is an emerging need for the post of a chief energy officer (CEnO) - a person who could implement environmentally friend business strategies.

One Canadian IT industry analyst says executive inaction is possibly due to a perceived lack of compelling reasons to initiate any green strategy.

"There appears to be a feeling among corporate executives that the threat of global warming and climate change is not real," according to David Senf, manager of software research at Toronto-based analyst firm IDC Canada Inc.

He says companies are probably held back by the perception that the cost of implementing sustainable strategies outweighs the benefits.

In a recent survey of 200 Canadian IT and business managers, IDC found a significant number of executives "still have their heads in the sand" on the issue of global warming.

When asked if they agreed global warming and climate change is real and affecting the planet, about 40 per cent answered they "strongly agreed" and 30 per cent said they "agreed".

Another 16 per cent were spread in categories between the two answers, but Senf notes that 14 per cent didn't believe global warming and climate change were real issues, or had an affect on the planet.

Asked when they thought environmental changes would negatively affect their businesses:

- 27 per cent said 10 or more years from now;

- 17 per cent, six to10 years;

- 24 per cent, three to five years;

- Eight per cent, one to two years;

- Five per cent, 12 months; and

- 19 per cent, "never"

"Canadian organizations don't feel this is an immediate issue they should deal with," says Senf.

Continued:How environmental concerns factor into IT expenditures

Related content:

Finding perspective amidst IT's green agenda

Green computing: tips, tricks and energy cost-cutters

Climate for change: Ten ways to greener highways

Procurement for Public Servants 101

Clinton's new carbon tracker aims to cut Toronto smog

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