Technology-Enterprises and Climate Strategy

Climate Change

What is Climate Change?

Climate Change? ?Let us blame it on Carbon dioxide, Methane, and the other greenhouse gases (GHGs). The burning of fossil fuels is producing greenhouse emissions that are heating up our planet Earth by not letting the heat escape from our atmosphere. Apparently, GHGs love building a warm blanket around our Earth. This in turn has long term impact on the temperatures and weather pattern. The uncertainties’ in how cold the next winter or how hot the next summer is a consequence of Climate change.

What causes Climate Change? ?There are number of factors that are leading us slowly into a Climate Change, be it generating power using non-renewable resources, for instance: The generation of electricity in most parts of the world is still done by burning fossil fuels like coal, oil or gas that generates greenhouse gases like Carbon dioxide and Nitrous oxide. ?Why don’t we switch to renewable sources? I wish it was an easy answer.? Sun, wind and water are certainly our go to option when it comes to making sustainable choice but there are number of factors like financing, availability that determine the suitability of these options.

We must also not forget that our food choices can also have an impact on the Climate Change. However silly, it may sound but it does come to the GHGs emitted as part of the end to end production, packaging and storage processes.

Another factor is deforestation that is a consequence of urbanisation, and increasing demand for housing is an attractive investment option for builders to build new housing societies. There are various products that we consume that produce greenhouse gases because of the burning of fossil fuels during the manufacturing process. Not only this, it impacts our bio-diversity, the food chain, food-pyramids and ultimately adding to our woes.

How are Climate Change, Technology and Enterprises related?

The climate change is everyone’s responsibility like millions of other social causes. However, we have seen various corporate social responsibility (CSR) initiatives lead by these enterprises that endeavor to contribute back to the society.

As it is expected by leaders, social influencers to set a precedent for the wider community; the enterprises take great pride in leading these philanthropic efforts; to ensure we all are living in a healthy environment and a progressive society. It is fantastic to have a purpose and if technology is created to solve a challenge or reduce the impact or alleviate the world from challenges like Climate Change then technology becomes more valuable.

Imagine an enterprise called “y” being able to create technology and services that are helping the world to adopt more renewable sources of energy and in turn reducing the greenhouse gas emissions. That’s innovation with a greater societal impact. What does it do for “y”? More business, support from investors and a reduced carbon footprint.

?That’s why, more and more enterprises are investing in building sustainable products, services, and solutions. Not just that, financial institutions have set their ambitious targets to be a net zero bank in few decades. Wait a minute, what is Net Zero? Simply put, it means cutting greenhouse gas emissions from these several activities to zero and it also includes the objective of absorbing the remaining emissions, if any in the atmosphere. Currently,?the Earth is already about 1.1°C warmer than it was in the late 1800s, and emissions continue to rise.?To keep global warming to no more than 1.5°C;?as called for in the United Nation’s climate change conference in Paris, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

?To meet these targets of being a Net Zero Bank, the financial institutions have introduced investments portfolios that invest in sustainable businesses. The banks are tracking the emissions by supporting customers in the highest emitting sectors to reduce emissions and decarbonise. Additionally, the banks are making a bolder move by prohibiting the financing of new thermal coal mines and new coal fired power plants. There are new partnerships with retailers on various supply chain finance programmes to link financing rates to sustainability performance. To bring another level of seriousness to it, Chief Sustainability Officers are being appointed to drive the financial institutions towards their ambitious net zero targets. In fact, the Chief Sustainability Officer is becoming a very key profile across enterprises irrespective of the sector they operate in.

Climate Strategy for an enterprise- What it entails?

A Climate Strategy for an enterprise includes identification of activities that will enable them to be compatible with the net zero targets of their organization and world of net zero emission by 2050 through various possible ways. This also implies that company’s technical, financial and growth strategy must be in-line with the overall Climate Strategy. There are various ways in which the enterprises can contribute and act to reduce these emissions and reduce their carbon footprints. First and foremost, the enterprises must review their supply chain and all other major processes to find the sources of these greenhouse gases emissions and look for optimisation of these processes to either eliminate or reduce the emissions. Secondly, the enterprises must think/re-think about their products and services and how these products/services can decarbonize or must consider options of supporting projects that finance the businesses focusses on reducing GHGs emissions. Thirdly, the Climate Strategy must be elevated by support for building Carbon Sinks around the world. The carbon sinks are the ocean, soil and forest that can absorb the carbon dioxide from the atmosphere.

What are the enterprises doing about it?

What not, it is not just the Climate strategy that they are building they are doing much more than that. Many enterprises are setting examples for their peers to transform their business operating models to become a more sustainable business and workplace too. There is a plethora of start-ups that have sprung up and are offering sustainability solutions for personal and professional consumption. Example: The way the workplaces are transforming is unbelievable, we are becoming more mindful about the electricity that is being used at work, the emissions that we are generating and the modes of transportation. Thanks to the IoT sensors, Cameras and the latest platforms powered by various APIs and software. The corporates are encouraging employees to purchase Electric Vehicles for their commute by various financing options. Electronic Vehicles are picking up sales in few developed nations and are supported by the underlying infrastructure whereas few developing countries are still trying to curb the pollution that is being caused by the old diesel run vehicles. The employees are driving various initiatives globally to contribute back to the society. The enterprises are making wiser and sustainable choices when they are investing in for equipment’s for their offices, data centers etc. ?The technology manufacturers are offering take back, recycle and re-use program across the globe to reduce the e-waste and make best use of the existing resources. The Governments are investing in similar practices and activities across the value chain to be able to contribute to the green footprints. There are number of claims of a “Greenwashing” agenda lead by various consortiums and organisations, but we don’t want to go there, right? We want to make it happen! It is not as easy as it sounds though, but who wants an easy challenge to solve. There is one clear message for the whole humankind here that this is a behemoth goal of Net Zero that we need to get to and we all have to come together, be it a small enterprise or a tech giant, we all are sharing space on one planet- Planet Earth!

“Believe you can and you’re halfway there”- Theodore Roosevelt.

-?????? Priyanka Shiravadekar

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