Compass and lighthouse: Navigate transition planning with purpose and confidence

As year 2 of New Zealand’s Climate Standards rolls around and transition plan disclosures move into the cross-hairs, more expert voices are joining the fray—some with bigger marketing budgets than others. It’s all useful guidance, and the noise in the room is growing. That’s a good thing. Transition planning is what sustainability professionals have been advocating for more than 20 years. Finally, regulation has forced the issue.

There are two big questions on the table for decision-makers:

The compass bearers: In a noisy room, how will companies decide which approach and expertise add the most value to support a transition planning strategy that’s not only imaginable but actually implementable?

The lighthouse-keepers: And once organisations have done some good transition planning, who is best placed to help them meet the disclosure requirements and share the right aspects of that plan under New Zealand’s Climate Standards?

These are separate, though connected, activities—different expertise required, ranging from strategy to innovation to solution engineering. And we need to get it right this time. Transition planning must be grounded in the scientific realities of life on Earth. Why aim for anything less? Why leave those risks unaddressed?

When I first discovered The Natural Step in 2006, I thought I’d found the golden ticket - a strategic planning framework built on simple Earth-systems science. Today, it has evolved into the Future-Fit Business Benchmark, a strategic management tool embraced by leaders both here in New Zealand (think Tourism Holdings Limited , The New Zealand Institute for Plant and Food Research Limited and Ziptrek Ecotours New Zealand ) and globally (@?rsted, DeBeers, Aviva and Weissmann).

Back then, I was certain businesses would leap at the chance to adopt such a framework. They didn’t. Why would they?

Do good risk management.

Back then, there was no pressing reason not to make money from business models built around externalising impacts onto society and the environment at no real cost. But times have changed. Those externalities? They’re no longer hidden - they’re real risks. And risks, as we all know, cost money. They alienate customers, create bad press, and keep talent away. It’s not just carbon and climate anymore; it’s ESG, it’s sustainability… it’s just good business.

Over the past 15 years, the companies I’ve worked with on science-based strategic transition planning have seen the logic. “Doing well by doing good” isn’t a nice-to-have, it’s where we’re headed. The real questions now are: “How?” and “Can we get there in time?”

Some are not=surprisingly advising businesses to stick just to what’s required - be compliant, avoid penalties, keep your head down, do only what you need to. Sure, that’s one way to play it safe; and put it off for another day. But there’s a growing sense of frustration from businesses. They’re tired of spending time and money on compliance without actually making progress on the real work: transitioning to thrive in an uncertain future at an affordable cost.

Increasingly, directors and executives are asking bigger questions: How do these disclosures relate to the future of our business? How do we move from just meeting obligations to making real strides forward? How do we turn all this thinking into competitive advantage and business value?

There are two good responses to that.

Get practical advice.

First, pick up Ray Anderson’s book - Confessions of a Radical Industrialist. It's an oldie but a goodie, and timely holiday reading. Anderson, an engineer and the founding CEO of Interface , planned a strategic transition for his global company in the mid-90s step by step across seven big strategic goals. Interface, a US$800m revenue company, as Ray put it, was on a mission to climb ‘Mount Sustainability’. And they did it. The story Ray's creative commercial entrepreneurship provides a lighthouse for others to follow.? There are other such examples, but few so compelling and well-documented that go from zero-to-hero.

Second, try thinking like an engineer. Ray was one, after all. Engineers understand problems, devise options for solutions, and then design around constraints towards that vision of success, bit by bit. Like Interface, set goals, redesign what’s necessary, and innovate where it counts. But above all, be serious and be committed - like winners do.

That’s where engineering consultancies have a role to play in the noise. We’re problem-solvers. We’re focused on practical, science-based solutions that go beyond theory and paperwork. We know what’s possible and what works. Businesses need more than just risk management; they need strategies that align with the unchanging laws of physics, chemistry, and biology.

In reality, businesses will benefit from a collaboration of support – business model experts, lawyers, engineers and other specialists.? Having them work together will be a pre-requisite for good transition planning.? No one group has all the answers. Ray himself, convened a council of advisors from many expert disciplines.

Make this an opportunity to set a course that stands the test of time.

Many sustainability challenges stem from systems and models that simply don’t fit with how Earth operates. A compliance-driven approach might manage today’s risks, but it won’t fix that misalignment - nor the emerging risks of tomorrow (water scarcity, plastic pollution, PFAS, biodiversity, social license). What we’re advocating for at this inflection point is more ambitious: build resilience by realigning business practices with planetary boundaries and social needs.

We don’t have time - or the luxury - to tackle climate transition planning, then nature, then social issues, one by one. These are all interconnected aspects of the same problem: flawed and unsustainable business model designs. Transition planning is a chance to unlock opportunities that not only future-proof businesses but also build a more adaptable and prosperous world.

At the end of the day, the choice is clear: you can follow a narrower compliance path. Or you can step back, see the broader landscape, and use this moment to shape the future of your business—and maybe even help shape a thriving planet in the process.

When we look back from the future, I wonder what good leadership would look like right now? If we’re going to do transition planning, let’s start doing it with real purpose. That will give us the disclosures for the XRB process – at the same time as creating new opportunities through more sustainable value creation.