Sunday, October 15, 2006

Companies begin adapting to global warming

Companies from almost all sectors are beginning to factor the impacts of global warming into their business strategies. They may be negative impacts, like higher payouts for insurance companies (seven of the 10 most expensive catastrophes for Allstate have happened in the past two years), or opportunities like clean energy investments.

Companies like General Electric, Goldman Sachs, and the reinsurance giant Swiss Re are examining how they'll do business in a world moving away from a dependency on fossil fuels and towards a cleaner, more efficient energy system. A representative of Swiss Re explained that carbon is becoming a commodity. In fact, one report done by a UK-government funded company found that companies can increase their brand value by demonstrating to customers that they are "carbon responsible."

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