The clock is ticking to get on the pathway to net zero, and the jobs to be done are challenging. They are varied and complex, and every part of society – governments, companies, shareholders and individuals – has to get/be involved. So, what should we prioritise?
We surveyed 450 senior executives across sectors in the US, Europe and APAC to understand the milestones they are working towards and the challenges keeping them awake at night. The results show that most are still focused on the quicker wins, such as reducing waste and energy consumption, rather than the broader challenge of sustainably transforming emissions-intensive economies.
Do you want to know what they have to say?
Let’s get on the ball
We asked business leaders to uncover their priorities for a sustainable transition. Here’s what they say:
1. Identify and mitigate climate risk exposure
Business leaders must face an uncomfortable truth: climate change creates extensive risks for companies.
Companies must do more to identify and mitigate their climate risk exposure. They are trying to understand their level of risk, but most still have a poor grasp of physical risk exposure: only about a quarter have robust assessments of physical risk impacts
2. Decarbonise the supply chain
Adapting product models and reducing Scope 3 emissions will be the really difficult part of the climate transition, but less than a third of respondents have made progress in these areas.
Many companies understand that they need to include their partners and suppliers in their decarbonisation efforts, and 41% are working to improve supply chain communication and transparency.
Supply chain data is an important way to implement sustainability and avoid regulatory risks, but difficulties accessing this data are holding up progress
3. Make it a fair sustainable transition
Decarbonisation is the goal. But it’s going to be disruptive, and in order for climate policy to be sustainable, it needs to factor in social inequalities. It’s vital that the people who are leading change consider the impact of change on communities and customers.
The good news is that many companies are realising their responsibility: 45% say that helping local communities to manage the social impacts of the net zero transition will be a top priority for increased investment over the next two years
Learn more about what business leaders say about their sustainability journey.