[The following is a quick update of the four essential characteristics of a credible corporate climate strategy that I developed whilst working for Forum for the Future]
1) Understand your exposure to climate risk. In all its forms - whether from the physical impacts of climate change or from the societal response; and across your entire value chain (including the public infrastructure upon which your company relies). Any serious consideration of these risks *should* serve as the wake-up call as to the strategic importance of climate change to all businesses.
2) Embrace targets that are fit for purpose. Which, for any company with aspirations to leadership, now means aiming for zero emissions (or better!) by 2030. The remaining carbon budget to have a half-decent chance of remaining under 1.5C is now so small that any company aspiring to leadership must seek to decarbonize well in advance of 2050.
3) Align the fundamentals of your business. Yes, this means your business model – and the products and services your company sells – must be fit-for-purpose. Having an ultra-efficient supply chain won’t cut it if your supply chain is producing something that’s part of the problem…
4) Engage, advocate, and influence ! It’s no longer sufficient for a corporate leader to simply tackle their own value chain – leaders must now become effective advocates for – and agents of – wide, societal decarbonisation. After all, even if you get your own emissions to zero, your company remains exposed to climate risk if societal emissions remain…