The Climate Of Business #109: Corporate Sustainability 101 - the pitfalls of doing it alone

Climate Change Reality

• From climate hell to hope: 2023 in pictures (Euronews)
• 2023 was UK's second warmest year on record (BBC)
• Where has all the honey gone? Scientists point to factors in declining yields (The Guardian)
• Making jet fuel entirely from human poo (BBC)
• Ice cover in North America’s Great Lakes hits lowest level for 50 years (Financial Times)

• Warmer winters and more flooding will be the norm in the UK, scientists warn (The Guardian)
• Belgium in eight-week sprint to close deals on emissions, packaging waste legislation (Euronews)
• Brazil warns dengue cases could hit 5 million as extreme weather takes toll (Financial Times)
• Hurricanes Are Now Made of Microplastics (WIRED)

Business Climate Reality

• Australian regulator steps up greenwashing crackdown (Financial Times)
• Firms face sanctions over harmful impact of business partners (Euronews)
• British Museum signs ï¿¡50m funding deal with BP (BBC)
• Cop29 host Azerbaijan to hike gas output by a third over next decade (The Guardian)

• Europe and US extend trade truce over Trump tariffs (BBC)
• Global shipping fleet ages as shipowners resist shift to greener fuels (Financial Times)
• EU announces €4bn state aid to back battery and green tech factories (The Guardian)
• National plans in doubt as EU plans radical new 2040 climate target (Euronews)
• Climate Activists Tell the EV Industry to Fix Its Filthy Supply Chain (WIRED)

Reality Check

2024 will be a make or break year for business sustainability efforts across the globe. As legislation kicks off the globe, and more visibly across Europe, the result-driven mindset will be key.

In the fast-evolving landscape of corporate strategy, sustainability has emerged as a pivotal factor in attracting conscious employees, consumers, and investors. It has created a sense of urgency in board rooms and allowed for companies to take a pioneering position in their space fast overtaking competition simply by being steps ahead in the sustainability agenda.

As businesses set their sights on ambitious sustainability goals for the new fiscal year, an often underestimated aspect comes to the forefront: the necessity of collaborative sustainability planning.

Today I want to shed light on the pitfalls associated with a "solo" approach to sustainability and advocate for a business-centric strategy that amalgamates diverse perspectives, expertise, and resources to exponentially amplify the impact of sustainability efforts. This approach ultimately leads to success for the business resulting in higher revenues.

Business leaders need to be aware of the following pitfalls when starting or restarting their sustainability efforts in 2024:

1. Operational Blind Spots Due to Limited Expertise: Sustainability, a multifaceted domain, demands expertise across various sectors, from value chain intricacies to innovative solutions for decarbonisation. Being alone on the journey, as a company, or a sustainability leader in a company, may lead to operational blind spots, risking oversight of critical aspects and industry best practices. Collaborating with sustainability experts and industry peers becomes crucial to ensure a comprehensive and operationally effective sustainability strategy.

2. Suboptimal Resource Allocation Hindering Scale: Scaling sustainability efforts requires a substantial commitment of resources, both financial and personnel-wise. Going alone risks suboptimal resource allocation, constraining the scope and impact of initiatives. We have seen since 2017 a lot of businesses trying to understand decarbonisation or the latest legislation without context to the developments that led to the necessity of implementing such initiatives. This can lead to loss of time, resources and ultimately frustration across an organisation. Collaborative partnerships enable businesses to pool resources, share and reduce costs, while accessing a broader array of even funding options, facilitating the implementation of more ambitious and impactful sustainability projects at scale.

3. Missing Out on Innovation Opportunities: Sustainable practices are synonymous with innovation. I always say "Sustainability is simplicity". But to get to simplicity the groundwork needs to be executed with the excellence that needs to simplicity mindset. Partnering with external entities, startups, or research institutions exposes businesses to cutting-edge technologies and novel approaches that can drive both sustainability and efficiency gains. Cultivating a culture of innovation through collaboration positions businesses at the forefront of their industry, contributing to transformative change.

4. Stakeholder Engagement as a Cornerstone: Stakeholder engagement is paramount for the success of any sustainability initiative in any business. Some of our most advanced in decarbonisation and ESG planning clients have a deep importance of involving and educating stakeholders across the board in an organisation, to secure excitement but also stability of the implementation of their initiatives. Businesses attempting to independently plan and execute sustainability strategies risk could alienate key stakeholders, including employees, customers, and investors, as they miss the context albeit potentially deeply caring about the cause.

5. Overcoming Reporting and Measurement Challenges: Effective sustainability planning entails establishing clear goals, tracking progress, and transparently reporting results. Navigating this can be arduous, resulting in inaccuracies and reporting inconsistencies. Collaboration and digitisation can allow for standardisation of the language in an organisation around ESG frameworks and benchmarks.

As businesses navigate the dynamic landscape of sustainability, let 2024 mark the commencement of a collaborative and strategically aligned journey. I truly believe this year will bring the impact and success for industry players committed to sustainability excellence.

Please message me here if you want to discuss how transformative sustainability can be for the success of any business.

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