Stop talking, start acting – how to grow integrity of sustainability initiatives

Industries around the globe are likely facing the perfect storm of disruption in markets, supply chains, operations, technologies and regulations. And with the world still grappling with the impact of COVID-19, the question on how to grow Economic, Social and Governance regimes in firms has increased massively.

Most companies have climate strategies and targets that appear to vitally reduce, or even eliminate, their contributions to global warming. The rapid increase of corporate climate pledges, combined with the fragmentation of approaches makes it even more difficult to distinguish between climate leadership and greenwashing. This is compounded by a general lack of regulatory oversight at national level.

• “Net zero” targets commit to reduce aggregate emissions by only 40% on average, not 100% as suggested or required
• 19 of the 25 companies assessed will rely on offsetting for their future pledges, and only one company plans explicitly without offsets
• Hard to distinguish between real climate leadership and unsubstantiated greenwashing

• TOP-1 GAP “Tools & Systems”: the wide variety of solutions with different functionalities makes it extremely hard for firms to choose the ”right” one
• TOP-2 GAP ”Strategy”: Corporate- / Product Carbon Footprints as well as potential impacts on underlying cost scenarios are not fully understood
• TOP-3 GAP”Organisation & Governance”: Program set-up does not carefully integrate all facets and aspects of the required transformation

Identifying and promoting real climate leadership is a key challenge that, where addressed, has the potential to unlock greater global climate change mitigation ambition.

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