Cimate Change: New Zealand’s Obligation to the Kyoto Protocol

Climate change is described by the Oxford dictionary as being ‘a change in global or regional climate patterns, in particular a change apparent from the mid to late 20th century onwards and attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels’. Corporations have been faced with the need to protect our limited resources and environment for future generations whilst also trying to meet the needs and wants of consumers today. This has been defined as sustainability.

In 2006 New Zealand prime minister Helen Clarke declared that New Zealand should aim to be the first country which is truly sustainable (Clarke, 2006). New Zealand has long promoted itself as being a ‘clean and green’ nation. It has been estimated that New Zealand could lose billions a year if they were to lose their reputation as being a clean and green environment. This would be hugely detrimental to our economy as this is a country whose economy relies very heavily on the dairy, farming and farming industries.

In research carried out by E. Collin et al, it was discovered that over the period of 4 years organizations in New Zealand had increased their sustainability practices by 10% on average. Businesses were however only likely to adopt practices that would benefit them in some way as well. One of these ways was for the recycling paper because it was relatively easy and least costly for the organizations.

There has been a growing demand from stakeholders for businesses to incorporate more sustainable practices and products or services. Organizations need to consider the impacts their products have on the environment and how their processes may be viewed by consumers and stakeholders.

This can have many im...

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...ch the emissions trading scheme can be viewed as one of the key indicator of environmental risk factors within an industry or organisation (Busch, 2006). There is great importance that companies recognise that acting irresponsibly towards emissions can reflect badly on the organisation’s reputation but could also be a great indication that the company needs to improve its management and business strategies.

The call for transparency in organisations emission levels may impact on stakeholder interests with a company. Organisations need to realise that some stakeholders may evaluate the organisations culture and attitude towards environmental issues and therefore organisations need to be prepared with strategies to meet the expectations of stakeholders. The intangible effects of losing reputation could be far reaching than the costs of fines and ETS permits.