Ellen Moeller, Head of Europe at Watershed, speaks with members of the FinBiz 2030 Climate Action team to explain how businesses can positively impact climate action.
It may be shocking to discover that some large companies have bigger climate footprints than small cities. With the recent Corporate Sustainability Reporting Directive (CSRD) on the way and a drive to improve environmental, social and governance (ESG) functions within businesses, it is critical for companies like these to invest in an efficient climate change program.
But where do companies that have such a significant impact start? A comprehensive analysis of where the emissions lie within the company will provide a good base for identifying opportunities to invest in the innovative technologies needed to hit the targets that will ensure companies are ready for imminent disclosure requirements.
This article suggests what else businesses, large and small, can do to help address the impact their climate emissions have.
The part businesses play
The world cannot decarbonise without businesses playing their part immediately. The planet cannot wait for top-down regulation to come into effect, especially when companies can make an impact right now by reducing their emissions.
This can include everything from business travel to procuring clean energy for buildings and engaging suppliers to ensure they have sustainable programs. Climate will be a critical revenue driver in some cases, and having a good climate program in place can create opportunities to win business.
This does not come without its challenges for companies wishing to make a positive impact on the climate crisis, however. The main barriers right now are education and understanding.
Education
It can be very intimidating for businesses to embark on their climate journey, and owners and managers might feel like they are falling behind or don't know where to start. This is where third-party companies, such as Watershed—dedicated to helping businesses measure, reduce and report on their carbon emissions to build dedicated climate programs—can help navigate that journey.
Stakeholders must be educated internally, whether they are executives, procurement or finance teams. To help, all of the teams and departments within the business must understand what they can do to reduce carbon emissions and how to go about setting targets.
Terminology
Another challenge for companies is navigating and understanding ESG-related terminology.
One key area is the differentiation between net zero (gold standard) and carbon neutral, for example, and the importance of avoiding emissions as opposed to offsetting emissions.
Also important to grasp are the various regulatory frameworks coming into effect and the acronyms associated with each.
Individual contributions
Individuals can also help alleviate climate risk. One of the most important steps individuals can take is making sure their companies have a climate program in place by becoming vocal advocates for change.
In many cases, we have already seen that employees have been the ones to get companies to start thinking about climate.
So, while companies have a huge part to play as a whole, there are also opportunities for employees to be real advocates for climate action and mobilise change within their organisations.
Get started
For companies that want to change, but aren't sure how to go about it, the simplest way to positively impact the climate crisis is to get started. Begin with the numbers: having data is the best and easiest way to have conversations internally.
No business could reduce its emissions overnight, so get started early and engage multiple people within the organisation. This is a journey, not a sprint, but the goal is reachable with good communication and buy-in from all stakeholders across the organisation.
Ellen Moeller is the Head of Europe at Watershed.
The FinBiz2030 Irish Task Force is committed to facilitating the effort to unite and mobilise the Irish finance and business community to achieve the SDGs by 2030. Member Niamh McLernon, Aileen Noonan, and Derek Lowry conducted the interview.