A new study launched yesterday by Arthur D. Little explores the impacts of the climate change agenda on business strategy and future competitiveness. Facing the carbon challenge head-on is a critical success factor behind leading businesses in all sectors and regions of the world. This report looks at how leading businesses are delivering sustainable growth and improving brand equity through a dual approach to addressing carbon emissions and climate change in general.

Correct positioning is key to an impactful and profitable carbon strategy – but how do decision-makers balance technological innovations with customer-based solutions, as well as balancing regulatory compliance with voluntary efforts? Arthur D. Little’s latest study, “The Carbon Margin,” examines and articulates how businesses across all sectors can view carbon regulation and the surrounding debate as an opportunity to develop new profit streams and gain competitive advantage.

"Our research has shown that while all businesses must adhere to the legal carbon emissions regulations, the leading companies, regardless of sector, are not simply reacting to the carbon problem, but developing sustainable business models that address climate change in a way that is appropriate to their industry and customers,” reflects David Lyon, a leader of Arthur D. Little’s Global Carbon Advisory Service. “With climate change the decided issue du jour, businesses must not simply go through the motions and take a cookie-cutter approach to reducing carbon. In reality, carbon exposure presents specific, and often very different, risks and opportunities for each major industry sector.”

Companies are increasingly developing sophisticated carbon strategies or investing in energy-saving or carbon-cutting technology. However, in many cases, investing in technology or addressing carbon emissions is not enough to remain competitive. In “The Carbon Margin,” Arthur D. Little outlines how businesses that take a holistic approach to their carbon strategies are identifying new revenue streams, saving millions on current operational costs and building strong brand equity and competitive advantage.

Striking the right balance between technological innovations, market-based carbon responses and regulatory compliance is complex and does not offer a tailor-made solution or model of best practice.

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