5 Steps to Address the Impact of Global Warming Via Sustainability

The impacts of climate change are being felt across the globe - from extreme weather like Canadian wildfires that disrupt air quality and travel, to recent massive flooding and high temperatures in California impacting the way we live and work. Man made CO2 emissions continue to be the biggest contributing factor to climate change. 

This struggle around climate change has also led to negative impacts on global business. Climate change threatens many industries including automotive, insurance, agriculture, wine, energy, and commercial fishing. For instance, as a result of the uncontrollable wildfires, State Farm has pulled out of the home insurance business in California. 

According to a S & P Research report, almost 60% of companies in the S&P 500 and more than 40% of companies in the S&P Global 1200 hold assets at high risk of physical climate change impacts. Wildfires, water stress, heatwaves and hurricanes linked to increasing global average temperatures represent the greatest drivers of physical risk.

Following the UN Conference on Climate Change, many of the world’s largest companies and financial institutions voluntarily announced bold new plans aimed at mitigating global warming. Over 5,200 businesses pledged to meet net-zero carbon targets by 2050, and some 450 banks, insurers, and investors—collectively representing $130 trillion in assets and 40 percent of the world’s private capital—committed to making their portfolios climate neutral during the same period. A group of major automakers pledged to stop selling fossil-fuel-powered vehicles by 2035. The challenge will be making these plans a reality (Mckinsey Report 2022). 

Here are 5 steps businesses can take to address the impact of global warming: 

1. Conduct Sustainability Audits: First step is to conduct a thorough assessment of the company's operations- waste management, supply chain, energy consumption and identifying inefficiencies and areas of opportunities.
2. Outline Sustainability Strategy and Set clear Goals:  Adopting sustainable practices throughout a company’s business operations is critical for reducing greenhouse gas emissions, improving resource efficiency, and minimizing environmental degradation. Businesses can adopt software to monitor governance practices, create travel policies that put sustainability at the heart of the business needs, and ensure  suppliers understand the challenges of emission reductions related to the supply chain. By transitioning to renewable energy sources, implementing energy-efficient technologies, and embracing sustainable business models, organizations can achieve significant emission reductions and contribute to a greener future. Make your goals public for transparency and driving accountability.
3. Engage Employees and Stakeholders: Governments, businesses, and employees at all levels must collaborate to implement sustainable practices and reduce greenhouse gas emissions. For instance: Employees can contribute to this important effort by reducing emissions from business travel, adopting energy-efficient practices, supporting sustainable businesses, and demanding accountability from policymakers and corporations. 
4. Be a visible Advocate: Identify the target audiences you’re trying to influence.Collaborate with other industry peers, non-profit organizations and policy makers to address the issues collectively including setting industry standards, sharing best practices. Get involved in climate strikes. Engage like minded political leaders/allies.
5. Deliver Transparent Reporting and Walk the Talk: Track your company’s performance and progress towards sustainability goals and commitments made. Leverage the reporting frameworks from the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI). These standards enable organizations to provide industry-based disclosures about sustainability-related risks and opportunities that could affect the company's cash flows, access to finance or cost of capital. Understand the financial implications of ESG by using the SASB standards. 

Without immediate and effective action, global warming could result in irreversible damage. Transitioning to sustainable practices is not only a moral imperative, but also a strategic choice for businesses worldwide. 

Sustainability is no longer a choice; it is an imperative. Let us heed the call to action, and work collectively to mitigate the impacts of global warming, safeguard our planet for future generations, and build a sustainable and resilient world. Let’s leave this world better than how we found it!

#sustainability #globalwarming #ESG #CSR 

Source(s): 

S&P Report: https://www.spglobal.com/en/research-insights/featured/understanding-climate-risk-at-the-asset-level-the-interplay-of-transition-and-physical-risks

Mckinsey Report: https://www.mckinsey.com/capabilities/sustainability/our-insights/sustainability-blog/how-big-business-is-taking-the-lead-on-climate-change