Many companies today are taking proactive steps on climate change by reducing or even sequestering their greenhouse gas emissions. But one cannot, as many now do, generalize from these examples the proposition that all companies can benefit from greenhouse gas reductions. Climate change controls represent a market shift; the formation of new markets in pollution, pollution credits, money and emission abatement technology. And in any such transition, there will be winners and losers, those that embrace the shift and those that resist it. The difference between these two postures lies in strategic factors such as capital asset management, market competencies, global competitiveness and managing institutional change. The paper discusses each in turn and concludes with commentary on how present US policy towards the Kyoto Protocol is actually contrary to business interests.
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