Two pieces on the environment, and one of them is by Al Gore, naturally (remember, there's a documentary on the environment coming that stars him)

1. Global Warming: What, Me Worry? -- by Molly Ivins

On the premise that spring is too beautiful for a depressing topic like Iraq, I thought I’d take up a fun subject—global warming.

Time magazine warns us to “Be Worried. Be Very Worried.” On the other hand, my sister is on the Global Warming Committee of the Unitarian Church in Albuquerque, N.M. They go around replacing old light bulbs with more energy-efficient models. My money’s on my sis.

It’s a good thing the phrase “the tipping point” became a cliche just in time to help us describe global warming. Just a few years ago, we were more or less cruising along on global warming, with maybe 50 years or so to Do Something about it. Suddenly, the only question is how soon to push the panic button, and 10 minutes ago appears to be the right answer.

People in journalism are the worst criers of “Wolf!” imaginable. We are always setting off alarms about Ebola, or avian flu, or the impending water shortage, or the Social Security crisis, or killer bees, or the pine bark beetle, or anorexia among teenagers (surpassed only by obesity among teenagers). Boy, if we can’t sell you a scare with a few headlines and some mashed facts, no one can.

Naturally, having listened to the media set off endless alarms, the public is inclined to discount them, not to mention that global climate catastrophe is not an inviting topic. We’re somewhere between “Don’t Panic Yet” and “Panic Now!”—edging toward “Now!”

What is happening is not just what climatologists told us would happen, but global warming turns out to reinforce itself by a number of feedback mechanisms. For example, when the polar icecaps start melting, there’s less blinding bright ice to reflect heat back into the atmosphere—over 90 percent of sunlight simply bounces off ice and back into space. Whereas the dark water left behind by melted ice does the opposite, pulling in more warmth and accelerating the process.

The political fight over global warming is over, except for the Bush administration, which has some weird problem with science in general. I’m still not sure what’s behind that: I recall Rush Limbaugh and the radio right taking great glee in pooh-poohing the Kyoto treaty and the whole idea of global warming. Maybe they associated global warming with Canadians or something equally awful.

You might think some premise like, “The whole world is getting hotter, and disastrous consequences will ensue,” would be more persuasive than, “I don’t like Canadians, they’re wusses,” but I suspect part of the fun of being Rush Limbaugh is never having to say the word “responsible.”

The shame for journalism is that it has always been so easy to expose those few “scientific” voices claiming there is nothing to global warming. When the money for “scientific research” on such a subject comes from oil companies, skepticism is required.

Instead, many “journalists” let the bullies on the right cow us with the “liberal media” nonsense and reported there was “a debate” over global warming. There was no debate. The only question is how fast it’s happening. And the answer that keeps coming up is “faster than we thought. And still faster.”

Time magazine, in its warm and fuzzy way, proposes that capitalism can solve much of the problem of global warming—Henry Luce would be so proud. Can’t you see it now? Boy, I’ll bet those titans can hardly wait to cut into next quarter’s profits. The insurance industry, for obvious reasons of its own, has long taken global warming seriously. By simply refusing to insure housing or enterprises near low shores, insurance can make quite a difference.

It’s true the United States could make a good thing out of specializing in green energy and green technology—but we are still living with an administration that subsidizes the oil industry. The question is where the political leadership is going to come from before we reach the Panic Point, before Miami Beach sinks underwater, before Wall Street needs a seawall.

Al Gore is all we’ve got, and the right wing is still prepared to dismiss him with contempt and ridicule, not because he’s wrong but because they’d rather talk about the time he was supposedly advised to wear earth tones.

As the Earth drifts toward crisis, our president does not yet seem capable of grasping even the First Rule of Holes. We’re in one, and it is time to quit digging.

At the very least, it is time to replace those old light bulbs. Get busy, team.


2. For People and Planet -- by Al Gore and David Blood

Capitalism and sustainability are deeply and increasingly interrelated. After all, our economic activity is based on the use of natural and human resources. Not until we more broadly "price in" the external costs of investment decisions across all sectors will we have a sustainable economy and society.

The industrial revolution brought enormous prosperity, but it also introduced unsustainable business practices. Our current system for accounting was principally established in the 1930s by Lord Keynes and the creation of "national accounts" (the backbone of today's gross domestic product). While this system was precise in its ability to account for capital goods, it was imprecise in its ability to account for natural and human resources because it assumed them to be limitless. This, in part, explains why our current model of economic development is hard-wired to externalize as many costs as possible.

Externalities are costs created by industry but paid for by society. For example, pollution is an externality which is sometimes taxed by government in order to make the entity responsible "internalize" the full costs of production. Over the past century, companies have been rewarded financially for maximizing externalities in order to minimize costs.

Today, the global context for business is clearly changing. "Capitalism is at a crossroads," says Stuart Hart, professor of management at Cornell University. We agree, and we think the financial markets have a significant opportunity to chart the way forward. In fact, we believe that sustainable development will be the primary driver of industrial and economic change over the next 50 years.

The interests of shareholders, over time, will be best served by companies that maximize their financial performance by strategically managing their economic, social, environmental and ethical performance. This is increasingly true as we confront the limits of our ecological system to hold up under current patterns of use. "License to operate" can no longer be taken for granted by business as challenges such as climate change, HIV/AIDS, water scarcity and poverty have reached a point where civil society is demanding a response from business and government. The "polluter pays" principle is just one example of how companies can be held accountable for the full costs of doing business. Now, more than ever, factors beyond the scope of Keynes' national accounts are directly affecting a company's ability to generate revenues, manage risks, and sustain competitive advantage. There are many examples of the growing acceptance of this view.

In the corporate sector, companies like General Electric are designing products to enable their clients to compete in a carbon-constrained world. Novo Nordisk is taking a holistic view of combating diabetes not only through treatment but also through prevention. And Whole Foods and others are addressing the demand for quality food by sourcing local and organic produce. Importantly, the business response is about making money for shareholders, not altruism.

In the nongovernmental sector, organizations such as World Resources Institute, Transparency International, the Coalition for Environmentally Responsible Economies (Ceres) and AccountAbility are helping companies explore how best to align corporate responsibility with business strategy. Over the past five years we have seen markets begin to incorporate the external cost of carbon dioxide emissions. This is happening through pricing mechanisms (price per ton of carbon dioxide) and government-supported trading platforms such as the European Union Emissions Trading Scheme in Europe. Even without a regulatory framework in the U.S., voluntary markets are emerging, such as the Chicago Climate Exchange and state-level initiatives such as the Regional Greenhouse Gas Initiative. These market mechanisms increasingly enable companies to calculate project returns and capital expenditures decisions with the price of carbon dioxide fully integrated.

The investment community has also started to respond. For example, the Enhanced Analytics Initiative, an international collaboration between asset owners and managers, encourages investment research that considers the impact of extra-financial issues on long-term company performance. The Equator Principles, designed to help financial institutions manage environmental and social risk in project financing, have now been adopted by 40 banks which arrange over 75 percent of the world's project loans. In addition, the rise in shareholder activism and the growing debate on fiduciary responsibility, governance legislation and reporting requirements (such as the Global Reporting Initiative and the EU Business Review) indicate the mainstream incorporation of sustainability concerns.

While we are seeing evidence of leading public companies adopting sustainable business practices in developed markets, there is still a long way to go to make sustainability fully integrated and therefore truly mainstream. A short-term focus still pervades both corporate and investment communities, which hinders long-term value creation.

As some have said, "We are operating the Earth like it's a business in liquidation." More mechanisms to incorporate environmental and social externalities will be needed to enable capital markets to achieve their intended purpose -- to consistently allocate capital to its highest and best use for the good of the people and the planet.

(Al Gore, a former vice president of the United States, is chairman of Generation Investment Management. David Blood, formerly head of Goldman Sachs Asset Management, is managing partner of Generation Investment Management, which he co-founded with Gore.)