The Stern Report on Climate Change, which formed the basis for the UK’s 2008 Climate Change Act, says that climate change is caused by companies’ avoiding paying for the costs of the damage their greenhouse gas pollution causes. This is called “externalising” costs – putting them outside the company, so that something or someone else – the environment, customers, the public or employees – have to pay for them.

A new report, Expect the Unexpected, by the accountancy firm KPMG says that companies are externalising all kinds of environmental costs, not just the costs of climate change caused by their greenhouse gas emissions. The environmental impacts of industries like farming and food, beverages, mining and so on are worsening, but companies are avoiding paying for the damage they cause.
Continue reading →