Companies that fail to shrink their carbon footprints and integrate energy policies with business strategies won't survive in today's marketplace, argues University of Michigan Professor Andrew Hoffman in a new book.

Every chief executive officer, regardless of company size, should be focused on those issue, argues Hoffman and co-author John G. Woody in "Climate Change: What's Your Business Strategy." The book is being released May 1 by Harvard Business School Press.

"You should not think of climate change as an environmental issue at all. Instead, you should think of it as a market transition," Hoffman said. "And as in any such transition, there will be winners and losers."
Hoffman is the Holcim (U.S.) Professor of Sustainable Enterprise at the Erb Institute for Global Sustainable Enterprise. Erb students are dual-enrolled in the School of Natural Resources and Environment and the Ross School of Business at the University.

The authors present questions every CEO needs to consider: What kind of climate-related action is prudent for your company? Are there opportunities in the uncertainty of this market transition? What do your competitors see? They then discuss three steps CEOs need to take to develop an effective climate-change strategy:

• Determine their company's "carbon footprint" and ways in which potential changes in policy and markets will affect how the company's products and services are positioned.
• Reduce that carbon footprint in ways that create new strategic advantages.
• Gain a seat at the policy-development table in order to influence policy decisions affecting the company.

"All companies should be aware of their carbon footprints," said Hoffman, who has taught at U-M since 2004. "If they are not thinking about their energy management, they are throwing money out of the window."

Carbon footprints are a measurement of a company's effect on the environment in terms of greenhouse gases it produces as measured in units of carbon dioxide. The larger the number, the bigger the "footprint" and the greater the company's environmental and business challenges, argue Hoffman and Woody, who is a deal associate at MMA Renewable Ventures, a renewable-energy firm in San Francisco.

The $18 book ($12.50 when ordered in bulk) is the latest in the "Memo to the CEO" series from Harvard Business School Press. The series takes contemporary business issues, from managing media and confronting climate change to learning lessons from private equity companies, and then presents solutions-focused advice from leading practitioners. The work builds on Hoffman's years of experience in the areas of corporate responsibility and climate, and offers new interpretations and insights based on the latest technologies and trends.

"The book is more of a policy memo. The publisher did not want a data dump on the CEO, particular the CEO of a smaller company, who typically doesn't have the resources to devote the people and time, or the luxury of making mistakes," Hoffman said.

Hoffman lectures to and advises many companies that have already started developing business strategies to deal with climate change. "If you're an organization waiting out for that scientific í¢â‚¬Ëœsmoking gun' to be found before taking action, you're wasting your time. The policies are shifting at all levels - locally, statewide and nationally. The smart corporations see that regulation is coming. The momentum is building, without a doubt. The really smart companies see an inconsistent set global climate control standards all over the country and are saying, í¢â‚¬ËœEnough. Give us one standard.' They hate the uncertainty."

Many of the book's arguments build on ideas Hoffman first outlined in 2006 in "Getting Ahead of the Curve: Corporate Strategies That Address Climate Change," published by the Pew Center on Global Climate Change.

About the School of Natural Resources and Environment:
The School of Natural Resources and Environment's overarching objective is to contribute to the protection of the earth's resources and the achievement of a sustainable society. Through research, teaching, and outreach, faculty, staff, and students are devoted to generating knowledge and developing policies, techniques and skills to help practitioners manage and conserve natural and environmental resources to meet the full range of human needs on a sustainable basis.

About the Erb Institute for Global Sustainable Enterprise:
The Erb Institute at the University of Michigan fosters global sustainable enterprise through interdisciplinary research and education initiatives, including our acclaimed MBA/MS Program. Utilizing a collaborative approach, we help business, government andcivil society organizations to achieve meaningful progress toward sustainability.