How business leaders can lead on climate change

It’s a challenging time in the world to be a business leader. Beyond an increasingly competitive employment market and skills shortages, economic uncertainty and social unrest, our climate is in crisis, and business leaders are facing increasing regulatory and social pressure to be on the right side of history when it comes to climate change. 

Appropriately, this year’s COP was called the ‘Implementation COP,’ which seems particularly relevant to a business community that prides itself on action.  

The US government’s Inflation Reduction Act will direct $370 billion toward advancing renewable energy and reducing greenhouse gas emissions. This is the country's largest investment in fighting climate change yet and should have business leaders taking notice and working to find opportunities. 

However, government investments and regulatory promises will not solve the climate crisis. With businesses (especially small and medium businesses) contributing significantly toward pollution (their combined carbon footprint is estimated to contribute 60-70% of industrial pollution), climate action is not an option anymore. Instead, business leaders should be actively working to implement strategies to collaborate with communities, to take bold climate action and lead change. Keep reading to find out how...

Improve carbon literacy

At Cogo, we believe climate action starts with improving people’s understanding of where carbon emissions lie in an organisation‘s operations and highlighting opportunities to reduce them. Implementing a carbon tracking tool is a good place to start to see a breakdown of a business's carbon footprint and where improvements need to be made. 

Acknowledge the risks 

No significant action can come from ignorance. Negative climate actions affect business operations, reputation and supply chains. It, therefore, makes business sense to identify, measure and reduce those risks in annual planning. 

Set reduction targets

Whilst we focus on taking action now, it’s important that businesses are also aligned to future target-setting, reporting and compliance needs. This helps businesses progress in a way that is future-proof, preventing complexity from compromising their initial steps. 

Invest in reduction to save costs

While all climate actions are a long-term commitment, investing in some immediate reduction strategies can result in some quick wins that still result in long-term climate mitigation. This includes considering areas like transportation (flying less or using an electric fleet), opting for vegan catering at business events and in offices, recycling and using renewable energy. 

The business case for cost savings and operational benefits is relatively straightforward. While our research shows business leaders have several more complex areas of concern when it comes to being motivated to take climate action, these strategies equip leaders with tangible ideas to pursue sustainability with confidence. 

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