What does your company look like in a net zero-carbon society? What is your focus? Your source of income? Your cost levels? Who are your clients? Your suppliers? Your stakeholders?
The world is changing as it never has before and environmental risks are peaking. However, on the flip side of risk, there is opportunity.
To avoid your very own Kodak moment, you need to plan for a sustainable business in a net zero-carbon society. In short, if you want to convince your stakeholders and investors that you are financially viable on a long-term basis, you need to be environmentally viable. This means dealing with the impact of climate change on your business, while also exploring the opportunities that lie within the green shift.
The core definition of risk is: “Any event that can prevent an enterprise from achieving its strategic objectives.” The most common way of categorizing risks is operational, strategic and external risks. Environmental risks hit all categories hard. When assessing and handling these risks you can take different approaches:
- Be a defender – handling it as a compliance issue, doing only what you absolutely must
- Be an opportunist – exploring the opportunities
- Be a reformer – leading the way towards the net zero-carbon society
Do you need inspiration to get going? Look to EU’s Green Deal, the banks and investors’ push of capital towards green projects or the proposed changes to the Norwegian Oil Fund’s mandate to include climate risk and reduced carbon emissions in their investment cases. The world is heading in a more sustainable direction which represents an opportunity for any business case.
Do you plan to be in business in 2050? Then start considering your business case in a net zero-carbon society!