How leaders can prepare for the net zero world, today.
At a glance
The world’s climate is in crisis, with adverse impacts across economies and communities. According to the World Economic Forum, climate change costs the world US$16 million per hour. Like any other risk on your business, by failing to prepare, you are preparing to fail. Organisations seeking long-term stability and resilience and those wanting to continue to perform in an increasingly complex environment need to evaluate climate change risks to their business and implement strategies to address them.
There’s a call for leaders to sit down and re-think their five-, ten- and fifteen-year plans to consider what needs to change to thrive in a net zero reality. It could include changes to operations and practices, adaptation of products and services, or even more significant diversification and strengthening of your supply chain. Whether it’s a future where we are dealing with even more climate-related disasters or operating with entirely zero emissions, if you are not already thinking about what your organisation will look like in ten years, you could be too late. Here are three ways to do this.
1. Prepare, right now.
How do you begin tackling the world’s biggest challenges alongside many variables and co-dependencies? Much of the big-picture thinking from the World Economic Forum and COP28 suggests that there is undoubtedly enough momentum to fundamentally meet sustainability targets. Yet, it’s up to every organisation to invest and unpack their role in contributing to that. Reframe the conversation from a set of problems to solve and costs to outlay into one about investment and opportunity.
Recent conversations suggest that many organisations are in progress paralysis or experiencing a moderate to significant gap between their sustainability goals and action. There’s an underlying hesitancy due to uncertainties and risks of the journey ahead. Climate goals typically range in stretch targets spread across ten to 20 years, usually without a clear pathway to get there. Shift from a risk mitigation approach to a growth mindset, seeking opportunities and transformation. While you don’t have to make every decision needed for the strategy between today and 2050, planning now will help tomorrow.
First, focusing on what is certain and defining precisely what needs to happen or change within your business to adapt and grow will help the plan come together. Don’t overthink it. You are likely already undertaking several initiatives; do a stock take and build from that. Starting a plan will immediately force decisions to be made and remove a layer of uncertainty. If you are not already making climate-change- and sustainability-related choices, you aren’t adequately preparing your organisation for what’s inevitably to come.
2. Create your ecosystem.
No individual, organisation or country can do this alone. The GHD Sustainability Monitor 2024 indicates that executives need help to get all the right people in the room to find ways to make a more significant impact. At some point, an organisation will have done everything possible within their scope of accountability and needs to think in broader terms.
Global climate targets are contingent on many connection points that must be considered together. The need for radical collaboration, a different level of ambition and courage in tackling shared complex challenges, requires leaders to think beyond singular initiatives, traditional approaches and conventions.
At a broader level, leaders from the public and private sectors and government must be aligned on mindset and actions. At an organisation level, leaders can take action by identifying and bringing together your ecosystem of like-minded customers, partners, suppliers and peers to work on targets and outcomes.
The success of climate plan implementation relies on every organisation within this ecosystem coming together and approaching the goals from every angle. Isolated planning and lack of coordination on corporate sustainability preparation will limit reach and impact. Layout the combined collection of plans and frameworks on the table and engage, discuss and get cracking on the way forward. Once that work is solidified, the next layer to consider is how your ecosystem’s approach can be applied to connect to broader industry on a country and global level.
3. Embed stakeholder engagement.
Sustainability is firmly embedded in the strategy and vision of most organisations. However, GHD Advisory research says leaders have less confidence about the extent of integration. We are seeing the realisation that proper integration demands greater stakeholder engagement and change management within the organisations than currently exists.
A net zero vision and strategy that includes a program of work dedicated to changing mindsets, attitudes and behaviours across all stakeholders – employees, suppliers, and customers – is a critical enabler of success. Prioritise creating a well-established and proven framework that helps to educate, incentivise and motivate a sustainability mindset across internal and external stakeholders that promotes participation, involvement and accountability.
Good planning and tools will help leaders build resilience, adapt and benefit from a net zero world. Gain more insights and advice on actioning your sustainability ambition by downloading the GHD Sustainability Monitor 2024.
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