Trucks load coal mined from a mountain top. Credit: MANDEL NGAN, AFP/Getty Images
Environmentalists have long derided the false profits of energy companies. Take coal for example. Sure coal is cheap, but factor in the destructive power of mountain top mining and related health problems for workers and the surrounding degraded watersheds, and the real cost of "cheap energy" is passed along to local communities.
According to a new unpublished report by the United Nations,
the cost of pollution and other damage to the environment by the world's largest companies was an estimated $2.2 trillion in 2008.
If the 3,000 biggest companies were held accountable, the cost would wipe out more than one-third of their profits, according to the UK's Guardian.
The full report is due out this summer, but it already has its critics. Andrew Simms wrote in the Guardian that
the figure is likely much higher.
"Any precise figure, however, is a matter of how risk is quantified and of where you draw the line," he wrote. "In 2006, for example, the New Economics Foundation (NEF), of which I am the policy director, looked at the oil companies BP and Shell, who together had recently reported profits of £25bn. By applying the Treasury's own estimates of the social and environmental cost of carbon emissions, we calculated that the total bill for those costs would reach £46.5bn, massively outweighing profits and plunging the companies into the red."
No matter where the line is drawn, quantifying the value of healthy ecosystems does not equate change in business practices. With the world still suffering from a sluggish economy, this report is unlikely to see a broad shift in how governments regulate their natural resources.
While this report is sure to offer valuable think tank fodder, there could be some subtler real world repercussions. Besides empty rhetoric (think clean coal ads), there are various companies that are seriously examining their ecological footprint and being transparent about it.
Besides encouraging your politicians to
strengthen the Clean Air and Clean Water Act, you can take a closer look at some of your favorite companies to see how transparent they are about their environmental impact.
While governments are not about to bankrupt energy companies by holding them responsible for the total of the environmental damage, there are small changes to laws that can ease the burden on the environment. Electronics recycling laws, that ensure companies responsibly recycle electronics, are popping up around the country.
Obviously some of the biggest offenders are energy companies. Are you signed up for renewable energy? By creating demand it forces companies to build up sources of clean energy.
On a smaller scale, look around the house. Do you know if the wood you're using to build a deck is
Forest Stewardship Council (FSC) certified? Go take a look in your closet. Some companies, like
Patagonia, let you track your clothes from design to delivery.
Apple also accounts on its website for the complete life cycle of its products. Take a turn around your bathroom, are your cleaning products and body products made from earth (and human!)-friendly materials?
While some small changes in governance have boosted sustainably-sourced products such as FSC timber, as consumers we can do our small part to make sure that we are not encouraging environmental destruction.