Focus On Change, Not Emissions Reductions

As the global urgency to address climate change grows, it's critical to understand that our approach to solving this problem must evolve. While emissions reductions are vital, the real focus should be on the broader changes necessary to enable these reductions and, ultimately, transition to a sustainable energy future.

The Need for Fundamental Change

In many ways, targeting a percentage reduction in emissions—say, a 10% cut this year—can limit our thinking. It’s much like a young basketball player dreaming of an NBA career who focuses solely on winning their first game. Instead of focusing on immediate goals, the player should concentrate on daily habits, foundational skills, and the mindset that will get them to the NBA. Similarly, businesses and governments need to focus on the structural changes that will pave the way for the complete elimination of emissions.

A piecemeal approach to emissions reduction can leave us looking for short-term wins rather than systemic transformation. And that’s where many companies have gone wrong in recent years.        

The Sustainability Slowdown

As the recent Harvard Business Review article “Companies Are Scaling Back Sustainability Pledges—Here’s What They Should Do Instead” points out, many corporate sustainability commitments have recently become muted. Faced with market pressures and challenging economic conditions, companies are scaling back on ambitious environmental goals. This retrenchment comes at a time when decarbonization, biodiversity preservation, and the need to address social inequalities have never been more urgent.

The hard truth is that many of these challenges—such as carbon emissions and resource overuse—are deeply embedded in our economic systems. As long as carbon emissions remain untaxed and the use of natural resources isn’t properly priced, the market will continue to incentivize short-term profit over long-term sustainability. No single company, no matter how dedicated, can change these systemic incentives alone.

But this doesn’t mean companies should give up. In fact, this is a clarion call for a shift in strategy.

Focus on the Changes That Will Enable Decarbonization

To push forward the energy transition, companies need to focus on foundational changes rather than just meeting incremental emissions reduction targets. The following are a few areas that deserve attention:

1. Rethink Supply Chains: Instead of targeting short-term reductions in emissions within current operations, companies should look at ways to completely overhaul supply chains. This may include investing in circular economy models, transitioning to renewable energy across all production stages, or even partnering with competitors to achieve industry-wide shifts.
2. Embed Sustainability into Business Models: Companies must see sustainability as more than just a reporting obligation. It should be embedded in the business model itself. This could mean diversifying into low-carbon technologies, developing products with longer lifespans, or innovating in carbon capture and storage solutions.
3. Work Towards Policy Change: Because no single company can alter the market’s incentives alone, collective action is crucial. Businesses should band together to lobby for stronger environmental policies that price negative externalities and reward sustainable innovation. This includes supporting carbon taxes, promoting renewable energy subsidies, and ensuring that climate action is central to policy discussions.
4. Develop a Culture of Innovation: Sustainability and innovation go hand in hand. By fostering a company culture that encourages employees to think differently about materials, processes, and solutions, organizations can move beyond compliance and create new ways of delivering products and services sustainably.

A Shift in Mindset

The shift from focusing on emissions reductions to focusing on broader change isn’t just about rethinking strategies—it’s about rethinking mindsets. Just like the preteen athlete who dreams of the NBA, companies must recognize that success in the energy transition is not about small, isolated steps. It’s about building the capabilities, relationships, and innovations necessary for a sustainable future.

While many corporate sustainability pledges are being scaled back, now is the time for businesses to double down on systemic change. We must move away from the idea of sustainability as a set of isolated goals and instead see it as a transformative journey.

The future of energy isn’t just about hitting emissions targets—it’s about reimagining the systems and structures that define how we operate. By focusing on the right changes, we can build a path toward true sustainability.

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