Low carbon revolution and the emergence of the green-glomerate

Given how often parallels are drawn between the Industrial Revolution and the emerging low carbon revolution, it is remarkable how little detailed analysis there has been of the similarities that exist between the 19th century phenomenon that provided the foundations for the modern world and the imminent shift in the global economy that represents the last best hope of saving us from the ravages of climate change.

While the urgent need to decarbonise represents a unique challenge, there is no doubt that keen students of corporate history should be able to draw lessons from the Industrial Revolution (not to mention the mass market, IT and globalisation revolutions that followed) to help ascertain how the low carbon revolution will pan out.

…However, signs are now emerging that suggest the complexity of the business challenge presented by climate change could herald a revival of the multi-pronged generalist business model – a return of the conglomerate.

The most obvious evidence for this trend is found in the form of the engineering giants that never really gave up the conglomerate model. GE and Siemens, for example, have quickly realised that their sprawling operations are the perfect breeding ground for the integrated low carbon developments that are required to tackle the climate change challenge. Both companies have moved remarkably quickly for organisations of their size to tap the booming low carbon markets, no doubt helped by the fact that they not only produce the wind turbines that provide renewable energy, but also either understand or produce the smart grids that will transmit the energy, and the devices that will use it.

Computer Active