Six truths about climate action that all companies should know

JJust as there is no single solution to the climate crisis, being a sustainability-minded company requires a multi-pronged approach to carbon mitigation and emission reductions. Here are six basic truths that every company should remember as it follows the path of sustainable development.

Hard data is gold when making decisions

A phrase often used in data-driven sustainability circles is “what gets measured gets managed.” In the world of corporate carbon accounting, this truism should not be ignored. Inventorying carbon emissions can be a difficult task as companies work internally to gather the necessary data from various departments and regional offices around the world to transform the data – total spend, fuel miles, hotel days, liquid volumes and kilowatt hours – into a universal measurement ( metric tons of carbon dioxide equivalent) to quantify an individual’s contribution to climate change.

However, simply finding the data, classifying it into “business activities” and analyzing the calculated results allows a company to understand where its greenhouse gas emissions are most intense in its operations. Carbon inventory enables companies to target key operational activities and prioritize the most effective sustainability initiatives to implement.

Typically, companies take a “1-2-3 punch” approach in their decarbonization efforts. First, they implement quick-win energy efficiency measures, such as installing LED bulbs and smart lighting systems in areas where use is sporadic. This is what Bob’s Red Mill, a whole grain producer and client of mine, was the first to do at its manufacturing facility in Milwaukie, Oregon. Guided by energy experts at Energy Trust of Oregon, Bob’s was able to reduce energy consumption by 54% on one of its best-performing production lines while increasing product production by 12% with energy-efficient transportation upgrades in 2023.

Second, companies are implementing operational initiatives that have a measurable impact on reducing carbon emissions without impacting critical company growth goals, such as reducing office size, consolidating warehouses and converting vehicle fleets to electric vehicles – all strategies AVI-SPL, a company dedicated to AV technology solutions, which has worked with my sustainability consultancy, TripleWin, which I am currently implementing around the world to report a downward trend in greenhouse gas emissions. Third, eliminating waste streams sent to landfills through utilization, transfer and recycling options. Danone North America, a food and beverage company, is actively working to achieve its internal zero waste goal by 2025 by redistributing to food banks products that cannot be sold but are still suitable for consumption; sending organic waste to farms for animal feed or use as compost; and converting waste streams into biogas through anaerobic digestion.

Don’t ignore proven solutions

For organizations, the road to sustainability is well paved. There are plenty of proven climate solutions. Renewable and non-carbon energy sources currently generate over 40% of global electricity demand. In 2028, new solar and wind capacity is expected to more than double from 2022 levels, helping the world reach the Paris Climate Agreement’s path to net zero emissions by 2050.

More than ever, we are seeing significant decarbonization solutions at scale. Meta, a social media and technology conglomerate, announced that it achieved net zero carbon status across its global operations in 2020, largely by equipping its data centers and offices with 100% renewable energy systems: solar panels, microgrids and power from spare batteries storage.

Meanwhile, the popularity of electric vehicles (EVs) is growing rapidly – it is predicted that 17 million new electric vehicles will be sold in 2024, or one in five cars produced. Amazon, the e-commerce and cloud computing giant, just revealed in its 2023 Sustainability Report that it has deployed over 11,000 Rivian electric delivery vehicles (now up to 1,000) for last-mile deliveries in North America and Europe , as planned. expand its electric vehicle fleet to 100,000 by 2030

Cooperation is essential

Just as better decisions are made when many heads are in the same room, sustainability efforts are stronger and outcomes more successful when organizations take a collaborative approach to achieving goals. In the industry, we call this catalyzing your value chain. For 2020, Microsoft, a global technology company, has set itself quite ambitious sustainability goals: to become carbon negative, water positive and zero waste by 2030. It knows it can’t achieve these goals without supporting its suppliers’ efforts to realize these ambitions, because Right. In its Supplier Code of Conduct, the company asks its suppliers to measure their carbon footprint and report this data annually both to the company and to CDP, the global not-for-profit organization that manages environmental disclosures for companies and countries. In 2020, 12% of suppliers reported their environmental impact. Just a year later, 87% had done so. Today, environmental disclosures are a mandatory initiative to stay within Microsoft’s “circle of trust.” To further accelerate progress towards the Paris Sustainable Development Goals, Microsoft has developed a free emissions impact dashboard, providing its customers with sustainability insights into how they use the Microsoft Cloud.

Accountability enables meaningful action

Sustainable business development requires persistence, consistency and deepening of efforts as intermediate goals are achieved, new processes are codified and competency and skill levels are achieved. This enables sustainability to be embedded in a company’s products, operations and organizational culture.

Holding companies accountable for their sustainability statements and actions has made it possible to achieve real, measurable progress in this area. If a company becomes a supplier to Walmart, a multinational retail corporation, it is required to register for Project Gigaton, where emissions data is disclosed and shared and suppliers begin their carbon reduction journey. Walmart also requires all of its suppliers to disclose CDP information, where reporting companies are rated based on the progress they have made on their sustainability efforts, and each supplier’s ratings are shared with Walmart. Walmart launched Project Gigaton in 2017, with the goal of reducing or avoiding one billion tons (or gigatons) of greenhouse gas emissions across the global value chain by 2030. Earlier this year, Doug McMillon, Walmart’s CEO, announced that the company had achieved its goal “Project Gigaton moonshot” six years earlier than expected, which is equivalent to eliminating Japan’s annual greenhouse gas emissions.

Commitment wins hearts and minds and helps you achieve your goals

Millennials and Generation Z naturally connect values ​​with sustainability. They, along with Generation Alpha, are the generations most likely to feel the effects of global warming this century. According to a 2024 Deloitte study, 79% of Millennials and 77% of Gen Z want governments to play a role in pressuring businesses to address climate change. These young professionals want a seat at the table to help companies take sustainable action, whether or not the words “sustainability” or “environment” appear in their job titles. Fresh Del Monte, the world’s leading vertically integrated producer, distributor and marketer of fresh fruits and vegetables, is one of the companies that has made the effort, winning the 2024 SEAL Business Sustainability Award and becoming a signatory of the newly established US Food Waste Pact. The company also understands the urgent need to provide employees with basic sustainability education. It leverages employee emotions to advance the company’s efforts to reduce unnecessary food waste and related greenhouse gas emissions through motivational employee engagement competitions at its manufacturing plants.

The work is hard but satisfying

Corporate sustainability can be a messy business. Sandboxes are dirty. It’s similar with cooking. But both are fun and rewarding. Sustainable development can be too. At the beginning of a company’s sustainability journey, data collection is a challenge. Data sets are often missing or frustratingly incomplete. Additionally, customer expectations and new regulations are setting new targets, leaving companies feeling like they’re constantly gasping for air. On the other hand, simply going through the data collection and measurement process uncovers information gaps that can be better understood and provides a deeper awareness of the carbon reduction initiatives that need to be implemented.

Sustainability means progress, not perfection. It’s about committing to the effort and communicating the journey honestly. Enter a state of stubborn optimism. The solution to the climate crisis is ours and it is very easy to solve. Stay motivated, focused and optimistic.

Gaertner is founder and CEO of sustainability consultancy TripleWin Advisory, technical advisor to the Loopt Foundation, and co-author Proven climate solutions: leading voices on accelerating change.