Born in 1997 at the Framework Convention on Climatic Change, the Kyoto protocol aims at reducing  the global emission of greenhouse gases (GHG) including carbon dioxide (CO2), one of the most polluting gases.   After Russia decided to ratify the agreement, the protocol came into force February 16th when it was signed by 141 countries which produce 61.5% of the world greenhouse gases. The United States, whose emissions account for 31.6% of world GHG emissions, refused  to sign the protocol.

        The system set up by the protocol is quite simple. Every industrialized country has been assigned a gas emission quota. In the event a country exceeds its quota, it is required to pay a fine. In contrast, if the amount of gases produced by a given country is lower than that set by the protocol (this applies for instance in many developing countries), such country can sell its GHG emission rights to another country.  This gives rise to the so-called “carbon market” where “carbon bonds” are the goods exchanged. This market augurs commercial exchanges involving huge amounts of money. To this end, events such as Carbonexpo has already been scheduled. This exposition will be held in the German city of Cologne on May and portrays itself as the biggest world meeting between buyers and sellers of carbon bonds.

Implications for business

        Nonetheless, the coming into force of the protocol does not only imply economic benefits but opens the door to the possibility of promoting alternative sources of energy to encourage clean development. This system forces companies and industries that emit greenhouse gases to implement devices and adopt sustainable business models in order to elude the payment of fines and the sanctions imposed by the Law.

        The prospect of being sanctioned has led shareholders of major US companies operating in  Kyoto participating countries to seek greater disclosure as regards likely financial risks as well as to demand that these companies reduce their emission of greenhouse gases. Exxon Mobil is among the companies that must now face these demands since its shareholders have filed a request demanding information on how the company plans to achieve the goals set by the protocol. Likewise, automobile companies like Ford and General Motors have to inform their shareholders on how they plan to remain competitive in the face of the existing push to reduce gas emissions from motor vehicles.

ifPeople´s approach to climatic change

        Against this background, ifPeople holds a firm position.  ifPeople has committed to being a carbon neutral company since its inception.
Consequently, we have adopted the Greenhouse Gas Protocol's
(www.ghgprotocol.org) methods and tools for evaluating the impact of the generation of carbon dioxide.

        We expect to be able to reduce our CO2 consumption in certain areas and improve the eco-efficiency of our operations. However, we believe this is not enough and we know that we will not be able to eliminate the production of carbon dioxide completely from our activities which -based on the provision of services- imply travel, use of electricity, and other office activities. For this reason in 2004 we engage ourselves in the implementation of programs to sequester carbon dioxide, like forestation, with native species and improving energy efficiency of office appliances.

        For 2005, ifPeople is developing new strategies to reduce the negative carbon impact of our activities. This year we will be focusing on our local markets for a greater portion of our suppliers and clients, we will be extending education programs to our partners and team, and we will also explore alternatives for energy providers and consuming devices.

Sources: www.sustentable.cl, www.safeclimate.net,
www.fundaciónentorno.org, La Voz del Interior newspaper (February 2005)