Including Global Warming in Strategic Planning
Copyright Jack Mixner. 714 449 1040. www.mixnerstrategy.com
So much is happening regarding the effects of global warming, an infrastructure dependent company might want to include a dialog - perhaps even a debate - at the Board level to decide how the different possibilities might effect future growth. Many companies, from the highest tech to the mundane will probably profit from the dialog as well.
Which issues will effect your company, and in what order?
- Water
- State courts in California block water deliveries to Central Valley and Southern California (Lowe, M7).
- New communities put on hold when unable to prove availability of water supplies.
- Land use policy is shifting toward no growth from rapid growth.
- Power
- Heat waves (as much as eight degree jump in average temperatures projected) and power usage spikes - and brown-outs - become the norm. While residential locations will be first effected, industrial users will be quickly effected, as well.
- This relates to green issues, as much of the power generated in the US is sourced from coal and other carbon based supplies.
- It looks to me like the "protection" claimed from producing energy from natural gas will diminish over time.
- Greenhouse Gas Emissions
- New California laws will probably address water, transportation, greenhouse gas emissions, land use and economic development.
- Land Use
- Thirty-one inch rise in sea-level will change ocean-front development specifications, flood plains, insurance companies and zoning rules.
- Ambient Temperature
- Forecast eight degree rise in ambient temperature will effect productivity and livability of communities and businesses nation-wide.
References
Lowe, Cary. California steamin'. Los Angeles Times. 19 June 2007. M7. http://www.latimes.com/news/opinion/commentary/la-op-lowe10jun10,1,7400184.story
Raynor, Michael E. The Strategy Paradox: Why Committing to Success Leads to Failure (And What to Do About It). Currency/Doubleday. 2007.