Companies will need to radically change the way they do business in the face of climate change and other pressures.

This warning is one of the findings of a new piece of research published today (13 June) by the South West RDA and launched at the 'Business as usual is not an option' conference at the Eden Project.

David Cameron will be the keynote speaker at the conference, which is hosted by the Institute of Chartered Accountants in England and Wales (ICAEW), the South West RDA and Business in the Community (BITC). The conference will focus on the need for businesses to adapt in the light of climate change, UK skills shortages and future economic conditions, and the opportunities available if they do.

The report, called 'Business not as usual - towards a low-carbon economy in the South West', was carried out by the New Economics Foundation (nef). It highlights that business is responsible for almost half of all carbon emissions in the UK. However, the research found that whilst many companies have signed up to the 'softer' carbon-saving solutions such as energy-saving light bulbs, switching off computers and recycling waste - this is not enough.

Far more companies need to make a radical shift in the way they operate their business - but they cannot do this on their own.

The report recommends that in order for business to make the shift, widespread changes need to be made to areas such as legislation, taxation, public procurement and investment in innovation. These are just some of the factors which affect how a business is run and how far it can go down the road to reducing its impact, especially in respect of climate change.

Simon Hooton, Director of Policy and Strategy at the South West RDA, which has made a commitment to ensuring that its investments are net zero-carbon by 2013, said: "Part of our job is to lead the South West's transformation to a low-carbon economy and help to unlock the region's businesses potential by taking advantage of the opportunities and challenges climate change will bring.

"In coming decades companies will have to change the way they operate as they adapt to the effects of climate change, rising oil prices and carbon taxation. If businesses start to make the changes now they can be more confident that they will be trading for many years to come."

"The report recommends that businesses do not need to switch to a particular business model in order to become more sustainable. Instead, external forces such as legislation and taxation need to change in order to allow business men and women to run low-carbon companies. If this happens, sustainable business models will follow."

There are already a number of businessmen and women in the South West who are evolving their businesses to meet the challenges of a low-carbon future.

The 4 star Bedruthan Steps Hotel in Cornwall is a business with sustainability at its heart. Bedruthan employs 80 staff all year round with up to 150 at peak season. All staff are made fully aware of Bedruthan's sustainable ethos when joining the company and are encouraged to join its Green Team, which meets once a month to discuss new green initiatives to introduce in the hotel.

The Hotel offsets its carbon emissions and contains many sustainable solutions including condensing boilers to save fuel and reduce emissions; low energy lighting; bedrooms are programmed with energy saving key card readers which turn off lights and TV; public bathrooms and showers have infrared sensors on taps to save water; the swimming pool is heated by 40 solar panels; food is sourced locally wherever possible to reduce food miles.

Owner, Emma Stratton, believes the business must do everything possible to reduce its impact on the environment, without compromising its guests' holiday experience. She said: "Sustainability is at the core of all our decisions and actions. The days of bloated over-indulgent hotels are coming to an end. Guests are tired of being over-fed, over-heated and swamped with consumption: they appreciate a great hotel guided by conscience. By consuming less, they receive so much more.

"With this in mind, our new (second) hotel is being built with sustainability at its heart. We hope this hotel will be cutting-edge in every sense of the guest experience. Success for us will be creating a pioneering business model for future generations."

Another good example of sustainability at the heart of a business is the Bordeaux Quay restaurant, brassiere, bar, deli and cookery school in Bristol. It employs 80 staff. The restaurant has been refurbished using existing materials, food is sourced locally and they have worked on a trial to compost their food waste. The building has a rain water harvesting tank and solar hot water panels. Staff are trained to recycle as much as possible ranging from plastic bottles to cooking oil.

Amy Robinson, Sustainability Manager at Bordeaux Quay, said: "We believe that sustainability needs to be incorporated into the heart of a business so we have made sure that everything possible, from the sustainable oak floors to the low energy lights, has a lower environmental impact. Because we are a restaurant, we need to ensure that our core business follows this principle, so we source as many local and organic ingredients as we can and consider carefully the provenance of everything we serve - including the water, which is chilled and filtered tap water, not imported mineral water."

Notes to editors:

1. The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential It works in partnership with public, private and social purpose organisations to drive up the region's productivity by giving people the skills they need, encouraging enterprise, improving infrastructure, regenerating places, and promoting the strengths of the region. For more information see www.southwestrda.org.uk

2. The report is called 'Business not as usual - transforming business for a low-carbon economy in the South West'. If you would like a copy of the report please contact: Fiona Clampin on the number below.

For more details contact: Fiona Clampin, 01392 229548, fiona.clampin@southwestrda.org.uk