Communicating the Strategic Implications of Climate Change Action in Petroleum & Energy Industries: Current Dilemmas, Future Outlook Jacob Park Assistant Professor, Business & Public Policy Green Mountain College (Vermont, USA) E-mail: [email protected]Presentation @ 13 th Annual Conference of the Greening of Industry Network Cardiff University, Wales/UK July 4, 2006
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Communicating the Strategic Implications of Climate Change Action in Petroleum &
Energy Industries: Current Dilemmas, Future
Outlook
Jacob Park Assistant Professor, Business & Public
Policy Green Mountain College (Vermont, USA) E-mail: [email protected]
Presentation @ 13th Annual Conference of the Greening of Industry Network Cardiff University, Wales/UK July 4, 2006
Presentation Outline
• Business of Global Climate Change: Changing Context for Petroleum & Energy (PI) Industries
• Communicating Climate Change Action in PI Industries: Assessing Current Approaches
• Public Communication and Outreach in an Age of Social Computing: Examining the
Strategic Implications for Firms and Industry
Business of Global Climate Change: Changing Context for the PI IndustriesKyoto Protocol, in force since February 2005, encourages the
participation of private and non-governmental actors through its ‘flexible mechanisms’
Increasing business awareness of and global public pressure for ‘beyond compliance’ climate change action
Companies in the PI industry are arguably the most ‘transparent’ in terms of
traditional environmental/sustainability reporting. But, environmental advocacy
groups regard PI companies, particularly ExxonMobil, as eco-unfriendly
‘carbon dinosaurs’
ExxonMobil: Case in point, check out: http://www.exxposeexxon.com/movie
BP (‘Beyond Petroleum or Beyond Preposterous?’ - CorpWatch, Dec. 2000)
Firms in PI industries still have NOT meaningfully engaged the public
in four key sector-related climate change dilemmas
1. Private sector is a leading source of international GHG emissions
• 22 percent of world’s carbon production can be traced to 20 companies, while nearly 47 percent of the global carbon emissions can be traced to 20 private and state owned energy enterprises
2. Many PI companies have a disproportionately large global carbon footprint
• The 1997 carbon footprint of BP would equal 3 percent of the worldcarbon emissions for that year
• Exxon Mobil’s 1997 carbon footprint would exceed the combined annual emissions of Indonesia, Malaysia, Thailand, and the Philippines
SOURCE: NRDC et al (1999) Kingpins of Carbon: How Fossil Fuel Producers Contribute to Global Warming and others
3. Although majority of Americans regard climate change to be an important
public concern, the American public (unlike most of Europe) is very divided
in terms of what constitutes the ‘appropriate’ climate change action
ABC News/Washington Post Survey (September 23-27, 2005)
“Do you think global warming is an urgent problem that requires immediate government
action, or a longer-term problem that requires more study before government action is taken?”
Urgent problem 41% Longer-term problem 47% Not a problem 6% No opinion 6%
4. Global energy consumption and GHG emissions (even with Kyoto Protocol)
between 2005-2030 are expected increase rapidly
Communicating Climate Action in PI Industries: Assessing Current Approaches
Four Types of Risk Communication Situations
• Public Relations: High Hazard, Low Outrage
A particular issue is of high risk to a firm or an industry, but the public awareness is low
Unlike the public, stakeholders are an attentive audience, neither too apathetic nor too upset to listen.
• Outrage Management: Low Hazard, High Outrage
A group of individuals or the public at large is upset with your company and/or industry,
although this anger is not likely to be much consequence to the company
• Crisis Communication: High Hazard, High Outrage
There is no ‘public’ in a crisis situation; everyone is a stakeholder. Crisis communication is
very different from routine public relations, though it is often treated one and the same
(Adapted from Peter Sandman 2003 [http: www.psandman.com])
TV Ad: Do you believe in global climate change?
"I guess as I get older yes I am starting to worry about the environment now, the global warming." Cab driver, London
"We’re destroying the capability of the planet to heal itself." Man, Chicago
"It’s something we need to deal with and we need to deal with it today." Woman, London
Our action:
We were the first major energy company to publicly acknowledge the need to take steps against climate
change.Our energy efficiency projects have reduced emissions byover 4 million tonnes since 2001.
It's a start.
BP: Public/Stakeholder Relations Approach
Shell: Stakeholder/Public Relations Approach
According to Shell, the company ‘shares concern’ that carbon emissions from vehicles
and industrial activity are contributing to global climate change
Carbon TradingCarbon Trading is the buying and selling of allowances for producing carbondioxide emissions. Garth Edwards has seen how carbon trading encouragescompanies to reduce their emissions.
Energise™ for lower emissionsEnergise is a programme for conserving energy and reducing emissions at ourfacilities worldwide. Livio Accattatis advises us where and how energy efficiency can be improved.
Preparing the way for hydrogenHydrogen fuel can power vehicles, with the only emissions being heat and watervapour. It is widely tipped to be a fuel of the future. Rick Scott is already installinghydrogen pumps in Shell refuelling stations.
Cleaner transportAs China’s economy continues to grow, so does the demand for energy. Discoverhow Han Juan is working with the Shanghai Government to find cleaner energysolutions for China’s thriving cities.
Chevron: Public Relations/Outrage Management Approach
Question posted on the company website: “Why won’t ExxonMobil recognize
that climate change is real and take actions to support the Kyoto Protocol?”
Opposition to the Kyoto Protocol does not equate to a lack of concern about the
environment or the issue of climate change. In fact, quite the contrary. ExxonMobil
recognizes the risk of climate change and its potential impact on societies and
ecosystems, and we continue to take actions and work with others to address that risk.
ExxonMobil: ‘Not my sole responsibility so no need for a firm-level communication’ Approach