Extreme weather events and scientific evidence of shifting weather patterns have heightened awareness about climate change. A variety of actors are now assessing the effects of climate change. On one side, central banks and regulatory bodies are considering policies and programs to lessen the impact of climate change, setting up institutions like the Task Force on Climate-related FinancialDisclosures. On the other hand, individual consumers are monitoring the climate action initiatives of governments and industries — and highlighting any lapses on public platforms.
The impact of increased international attention on climate change was seen during COP26—the UN Climate Change Conference that convened in Glasgow last year. Many of the world’s biggest businesses and financial institutions voluntarily unveiled innovative new strategies for reducing global warming.
- Over 5,200 companies decided to achieve net-zero carbon emissions by 2050.
- Around 450 banks, insurers, and investors agreed to make their portfolios climate-neutral by the same year.
- In India too, businesses agree with the government’s plan to achieve net zero emissions by 2070. In fact, 83% of business managers want to reach the net zero carbon target by 2050, reveals the Salesforce’s Trail To Net Zero For India report.
Recognising the importance of sustainability in business
As crucial stakeholders in society, businesses possess the social and financial capital to speak up for pressing causes. Consumers are aware of this and are tailoring their expectations accordingly. They expect their preferred brands to drive awareness about the impact of climate change, focus on sustainable consumption, and take actions to reduce the adverse effects of their manufacturing and distribution policies on the environment.
The latest Salesforce State of Connected Customer report found that 78% of customers are influenced by a business’ environmental practices when deciding on a purchase. 68% of such customers trust businesses to act considering society’s best interests
So how can companies reduce emissions and keep a check on their carbon footprint?
Integrating climate change action into your business philosophy
“Planning and acting upon climate change responses is a critical priority for all types of organisations, including businesses focused on profitability. Companies need to develop an instinct for avoiding actions that impact the planet’s health, and this fact should be internalised at the leadership level,” said climate activist and educationist Sonam Wangchuk, during a conversation with Arundhati Bhattacharya, Chairperson & CEO, Salesforce.
How? Here are some steps a company can take to integrate sustainability and climate action into its core philosophy.
1. Ensure transparency
To build trust and showcase genuine commitment to climate action, companies need to be transparent about aspects such as:
- The organisation’s processes for managing climate-related risk
- The metrics used to quantify climate-related risk
- Existing carbon footprint
- Steps taken to optimise resources and innovate processes to reduce wastage and increase efficiencies.
2. Collaborate with like-minded partners, stakeholders
Clean supply chains are the first step to a green company. “Beyond our own actions, it is important to engage with others who share a similar approach. Accordingly, organisations must look at engagement with suppliers and markets that share a focus on clean values and not just financial profitability,” says Wangchuk.
3. Spread climate action awareness at all levels
While change should start at the top, it is essential that the learnings are passed on to the employees so that they grasp the gravity of the situation and the need for action, Wangchuk explains. Accordingly, businesses should:
a) Encourage a fundamental shift at the management level where practices like carbon accounting are seen as a cue for innovation rather than a mere compliance checklist.
b) Equip employees with the right tools and technologies that can provide actionable, data-led intelligence. This will eventually lead to actions that help in mitigating and reversing the impact of climate change.
From the above, it is clear that incorporating sustainability into business strategy requires significant time and effort, and the consequent change can result in disruption as well. How can organisations ease this process?
Manage climate change action with Salesforce
By using Salesforce Net Zero Cloud, companies can ease the process of going carbon-neutral with the latest technology. Net Zero Cloud provides a complete overview of sustainability data – including carbon footprint, energy use and emission factor. It helps quantify carbon footprint and track emissions with cutting-edge analytics, use data-driven insights to highlight sustainable practices to all stakeholders, and streamline data gathering and climate action plan with embedded guides and user flows.
Using Net Zero Cloud, companies can
- Get investor-grade data and detailed dashboards for Scope 1,2 and 3 emissions, plus waste management, all in one place
- Collaborate safely and securely with suppliers with a pre-built portal template and a supplier management data model
- Find fastest path to Net Zero with what-if analysis, alignment to science-based targets and forecasting
- Customise apps and workflows and seamlessly integrate data from multiple sources.
