The Climate Of Business #137: $36B cost of Hurricane Milton, 73% wildlife decline, rise of floating wind farms, the ROI of tech in sustainability

Climate Change Reality

• French PM presents report preparing for dramatic climate warming scenario (Le Monde )
• In Swiss alps, concerns grow over dangerous landslides (Deutsche Welle )
• The “dirty side” of a hurricane, explained (Vox )
• Scottish Highlands become battleground in the race for net zero (Financial Times )
• Extreme fire seasons are looming — science can help us adapt (Nature )
• Worst drought in century devastates Southern Africa, millions at risk (Al Jazeera )
• Watching over a fragile desert from the skies (Inside Climate News )

• UK rivers contain ‘cocktail of chemicals and stimulants’ endangering aquatic life (The Guardian )

• A colder winter? La Ni?a could bring European temperatures down (Euronews )
• Humanity is on the verge of ‘shattering Earth’s natural limits’, say experts in biodiversity warning (The Guardian )
• World on track for catastrophic 3 degrees Celsius warming (Politico )
• UN Climate Chief Warns of Looming ‘Trainwreck’ as 1.5C in Doubt (Bloomberg )
• Hurricane Milton payouts likely to hit $36bn, according to risk modellers (Financial Times )
• Wildlife populations have declined by 73% since 1970 (World Economic Forum )

Business Climate Reality

• Green Municipal Bonds Grow as Indian Cities Seek Climate Funding (Bloomberg )
• EU sticks to 2035 deadline for ban on sale of new petrol-driven cars (Financial Times )
• Floating wind farms to help reach net zero targets (BBC )
• Glasgow is trialling eco-friendly electric wallpaper to heat its ageing homes (Euronews )
• Global water crisis leaves half of world food production at risk in next 25 years (The Guardian )

• Burning rubbish now UK’s dirtiest form of power (BBC )
• Amazon buys stake in nuclear energy developer in push to power data centres (Financial Times )
• Taking more than 2 flights a year? €50 frequent flyer tax could raise much-needed €64bn for climate (Euronews )
• New York officials call for big oil to be prosecuted for fueling climate disasters (The Guardian )

Reality Check?

Once a relatively vague position, the role of the Chief Sustainability Officer is more clear, and critical, than ever. This evolution is in response to growing ESG pressures and rapid advancements in technology and automation. These factors are reshaping the approach to ESG reporting and decarbonisation planning, which are critical for organisations aiming to meet the global demands for climate action. With the incorporation of cutting-edge technology and the rise of automated reporting systems, the responsibilities of CSOs are becoming more defined, challenging, and data-driven.

The evolving role of the CSO

Traditionally, CSOs have been solely responsible for assessing the environmental impacts of a company, ensuring compliance with government regulations, and developing sustainability strategies across the business. Their responsibilities now extend into integrating comprehensive ESG principles throughout every aspect of corporate strategy, from environmental performance to social responsibility and governance structures. CSOs are tasked with asking crucial questions such as how to implement a sustainability strategy that creates long-term value, ensures compliance, and achieves profitability without compromising social and environmental objectives.??

One of the main shifts in the role of the CSO is the necessity to align the company’s sustainability efforts with global decarbonisation goals. This includes ensuring alignment with net-zero emissions targets and the transition towards a circular economy. By leveraging technology, CSOs can better track resource usage, reduce waste, and optimise supply chains to lower carbon footprints. In fact, ESG management now requires CSOs to utilise advanced data analysis to detect gaps in their strategy, minimise risks, and reduce the potential for greenwashing.

Technology’s impact on decarbonisation and ESG reporting

In the last decade, technological innovations in emissions management and reporting have greatly enhanced the capabilities of CSOs. Automated reporting tools, sometimes powered by artificial intelligence (AI) and machine learning (ML), are helping businesses streamline their data collection processes, ensuring accuracy and compliance with evolving regulatory frameworks. Automation allows for real-time tracking of environmental performance, enabling companies to take swift corrective actions where necessary.

Moreover, the growing importance of scope 3 emissions—those that occur along the entire value chain, both upstream and downstream—has placed additional pressure on businesses to assess and report their indirect emissions. Scope 3 emissions often make up the majority of a company’s carbon footprint, and tracking these emissions is a complex task without robust technological solutions?. However, automated systems, such as life cycle analysis tools and supply chain management platforms, enable CSOs to capture, measure, and report these emissions more effectively. This ensures that companies meet their compliance obligations under frameworks like the GHG Protocol.

These advancements are also pivotal in decarbonisation planning. Automated tools assist in scenario modelling, allowing companies to forecast the impacts of various carbon reduction strategies. Such technology is key in navigating the increasingly complex web of climate regulations that organisations must comply with.?

Looking ahead: the future of CSOs

The future role of the CSO will continue to be shaped by technological advancements, stricter regulatory requirements, and the increasing integration of ESG principles into every level of corporate governance. While automation and AI will ease the burden of data collection and reporting, the CSO’s ability to interpret this data and translate it into actionable strategies will remain critical . In essence, CSOs will need to act as both sustainability advocates and data-driven strategists, ensuring that their companies not only meet compliance demands but also thrive in a low-carbon economy.

As the world moves closer to 2030 and 2050 net-zero targets, the CSO will play a pivotal role in shaping a company’s future. They will need to set ambitious but realistic decarbonisation goals, ensure that ESG risks are mitigated, and inspire a culture of sustainability throughout the organisation. The rise of the CSO is not just a trend—it is a reflection of the changing landscape of corporate governance and the central role that sustainability will play in the decades to come .

Ultimately, as the role of the CSO expands, so too does the need for leadership that can not only respond to the challenges posed by climate change but also harness the power of data to drive corporate transformation. A successful CSO must possess a strategic vision that aligns sustainability objectives with overall business goals while also being adept in technological solutions that improve ESG management.The growing use of ESG-related performance metrics in executive remuneration plans is a clear indicator of the direction that corporate leadership is heading. A study has shown that 41% of businesses now integrate ESG criteria into variable remuneration, with CO2 emission reductions being the most prominent metric .

Ready to explore how technology can bolster your sustainability strategy? Schedule a call with Plan A. Our experts are ready to discuss how your company utilise our can leverage leading carbon management platform to gain a competitive edge.?

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