Climate change and sustainability in the energy sector

Concern with climate change and sustainability emerged in the public debate in the 1970s. Over the course of the next 40 years progress was achieved on both fronts, reflecting an evolution in societal values, where economic development was no longer seen as an absolute goal, but one which had to be realized with due regard to its impacts on people and the environment. Governments started to consider means to achieve a balance between these competing goals, while companies started to integrate social and environmental considerations in their business pursuits. This article will describe the origins of the concept of sustainability and international attention to climate change and how changes in societal perceptions regarding climate change and societal expectations of company conduct led to increased action by governments and business alike. It will also show how stakeholder activism on the part of the investor community, NGOs and governments coupled with companies’ endorsement of sustainability as a means to maintain their social licence to operate and hence market position, have resulted in an energy sector prepared to play a part in the transition to a low carbon society.