Don’t go it alone: collective impact delivers change on climate

Key takeaways from the discussion were:

1. Companies should explore opportunities to create internal ‘fighting funds’ or budgets that allow sustainability teams to reinvest cost savings into further initiatives. There should be reward for doing the right thing and that reward would be earning the resources to do more to deliver net zero.
2. This is a time for innovation. For example, companies could investigate the feasibility of implementing an internal carbon tax or pricing mechanism to better account for environmental externalities. Boards should look for ways of investing in nature-based solutions to drive sustainability. This includes setting the right incentive structure. But companies should start with one hot spot and build momentum to drive sustainability efforts. We also need to see the cost of carbon appearing on balance sheets – a different type of innovation.
3. It is also time to collaborate externally. The panel suggested companies could engage with biodiversity and nature groups to learn about opportunities for businesses to involve themselves in addressing the planet’s biodiversity challenges. Companies could explore partnerships with local businesses and organisations to unlock green financing and support small organisations with decarbonisation efforts.
4. Boards must ensure that climate is integrated into their governance activities to make a clear case for climate being part of strategy and not a separate initiative. There must be a fundamental shift in mindset, so that sustainability is viewed as, and becomes, an engine for growth that includes listening to stakeholders across the entire business ecosystem. Creating a business case for sustainability and leveraging supply chain engagement to achieve cost savings will also help.
5. The role of the C-suite is to set the tone, aligning incentives, and communicating the strategic priority of sustainability. Now is the time for leadership that can manage uncertainty and communicate the need for controlled risk-taking. This means endorsing a culture that supports risk and failure. The role of leadership is also to think about future markets and transition.
6. Collective change and impact will shift the dial – it is a question of mobilising organisations to be better and do more in relation to climate and nature. A shared vision and the leveraging of partnerships will break down silos and drive collective action. There is also a need for businesses to understand the policy environment and how to leverage green finance and creative solutions to unlock funding for sustainability projects.
7. And accountability is king.