By working collectively it is possible to turn net zero commitments into tangible actions and help everyone play their part in progressing to a more sustainable future.
A major crisis, climate change, is already changing behaviours within society as well as the agendas and strategies of business. Widely perceived as the biggest imminent threat facing us all, the pandemic offered a glimpse of the scale of change that would be required to mitigate some of the worst effects of climate change. As the world turned to isolation as a strategy for limiting the spread of the virus, the result was cleaner air and skies, as well as a drop in global emissions by around 7%. These effects, albeit temporary, have put renewed focus on how to build back greener.
For businesses, climate change is no longer a distant threat. This was reflected in our recent research into views on environmental sustainability which found that over 30% of business executives are already feeling the operational impact of climate-related disasters. Against this backdrop, the pandemic has also led to 65% of organisations pushing or cutting back on environmental initiatives in some respect.
Looking to the future, its essential business leaders reverse this trend as a priority and recognise that climate change is going to be the leading concern for consumers, activists, employees, and shareholders alike. There is increasing expectation on organisations to commit to progressive net zero goals, and inaction could present a serious risk to the bottom line for businesses.
Environmental commitments are also likely to be enforced on businesses from a regulatory perspective with governments seeking to introduce stricter rules and guidelines aimed at contributing towards global climate change targets.
The risks of delay are clear, but it’s crucial that businesses also look at the opportunities that responding to climate change can bring to their organisation. Many of the innovative strategies and skills deployed during the pandemic should be considered as a catalyst for helping business leaders and organisations to actively work towards climate change targets. There will also be opportunities for new businesses to grow in this space, as the possibilities offered by the green economy are accelerated.
This will be supported by new ways of living, working and consumption, all of which will be required for the growth of a greener economy. Deloitte recently led a consortium on an international COP26 project “Futures We Want” which saw academics, business, civil society, and citizens across the globe work together to set out their visions for climate resilient, feasible and desirable global net zero futures for nations across the world. A truly collaborative effort, the visions for the UK makes the most of its resources as a coastal nation, embracing solar, wind and tidal energy and it shows how the UK can also champion its role as part of a global net zero community that trades with and learns from other nations.
Ultimately, business leaders will need to take an entrepreneurial approach over the long-term, employing creativity and innovation at a scale and pace not seen since the industrial revolution. This will be underpinned by outcomes from the COP26 summit where world leaders will need to agree very bold targets to reduce global greenhouse gas emissions, and outline how this will be achieved, which in turn, will help give businesses a clearer call to action.
This will require a comprehensive review of all operations to ensure businesses are rewired and prepared for the coming changes. However, by working collectively it is possible to turn net zero commitments into tangible actions and help everyone play their part in progressing to a more sustainable future.
Vol 45, no.3