Article

How CEOs can win in a carbon-regulated world

The right answer can ensure company longevity; the wrong one can lead to extinction.

By Jorge Leis and Peter Parry

Published on January 06, 2010
min read


Guest-blogging today are two partners with Bain & Company, Jorge Leis and Peter Parry. Leis is head of Bain's Americas Oil & Gas Practice while Parry is head of the firm's global Oil & Gas practice. The heat generated by heads of state in Copenhagen rises from the noisy debate over how their countries can build carbon competitiveness. But CEO's confront a different question: How can I use carbon competitiveness to gain an edge over my competitors? The right answer can ensure the longevity of a company in an increasingly regulated world. Answering wrong—or worse, ignoring the question—could lead to a company's extinction over time. Most CEOs get the big picture on carbon competitiveness. Many attend industry forums and contribute their perspectives to the development of government policies. Many CEOs also track how green their company is, but mainly in terms of compliance with regulations, avoiding negative publicity from activist organizations, or branding products and services to appeal to eco-conscious customers. Few CEOs take a close look at their rivals and try to beat them at carbon competitiveness—by identifying the relative strengths and weaknesses of their carbon footprints. In reality, the battle over carbon competitiveness is no longer simply a national issue, or even an industry issue: Increasingly, it's a battle that pits one company against another. Read the full poston BusinessWeek's website.

Guest-blogging today are two partners with Bain & Company, Jorge Leis and Peter Parry. Leis is head of Bain's Americas Oil & Gas Practice while Parry is head of the firm's global Oil & Gas practice.

The heat generated by heads of state in Copenhagen rises from the noisy debate over how their countries can build carbon competitiveness. But CEO's confront a different question: How can I use carbon competitiveness to gain an edge over my competitors? The right answer can ensure the longevity of a company in an increasingly regulated world. Answering wrong—or worse, ignoring the question—could lead to a company's extinction over time.

Most CEOs get the big picture on carbon competitiveness. Many attend industry forums and contribute their perspectives to the development of government policies. Many CEOs also track how green their company is, but mainly in terms of compliance with regulations, avoiding negative publicity from activist organizations, or branding products and services to appeal to eco-conscious customers. Few CEOs take a close look at their rivals and try to beat them at carbon competitiveness—by identifying the relative strengths and weaknesses of their carbon footprints.

In reality, the battle over carbon competitiveness is no longer simply a national issue, or even an industry issue: Increasingly, it's a battle that pits one company against another.

Read the full poston BusinessWeek's website.