How do we secure net zero in a time of turbulence? Here's what ... - World Economic Forum

Trending 2 weeks ago
  • Davos 2023
  • Climate and Nature
  • Energy Transition
The caller disruptions person shown however rapidly unexpected shocks tin imperil the contention to execute nett zero emissions by 2050.

The caller disruptions person shown however rapidly unexpected shocks tin imperil the contention to execute nett zero emissions by 2050.

Image: REUTERS/Dado Ruvic/Illustration/World Economic Forum

  • In 2022, the satellite confronted highly connected, analyzable and dynamic political, economical and societal risks, arsenic highlighted successful the 2023 Global Risks Report.
  • Business organizations were forced to analyse their offering towards an effectual net-zero modulation portion managing risks and gathering resilience successful the look of ongoing economical shocks.
  • With those duplicate pressures successful mind, we asked concern leaders what actions they are taking for a sustainability strategy that besides foregrounds resilience.

In 2022, the satellite confronted highly connected, analyzable and dynamic political, economical and societal risks, arsenic highlighted successful the 2023 Global Risks Report. The resulting disruptions to food, energy, cyber, proviso chain, fiscal and planetary information has shown however rapidly unexpected shocks tin imperil the contention to execute nett zero emissions by 2050.

It presents a situation that governments, businesses, and the nationalist indispensable look together: however to navigate geopolitically challenging conditions to execute unprecedented systemic translation that volition decarbonize the satellite economy.

Business organizations are being called to analyse their products, worth chains and processes to enactment successful spot this net-zero modulation portion managing risks and gathering resilience successful the look of ongoing economical shocks.

With those duplicate pressures successful mind, we asked concern leaders astir the abbreviated and semipermanent actions they were taking connected those fronts, and what their captious parameters were for a sustainability strategy that besides foregrounded resilience.

"To embed net-zero principles into concern strategy, companies request to commencement with their committee first"

Bonnie Y Chan, HKEX Head of Listing

We judge that sustainability and resilient businesses spell manus successful manus due to the fact that having ESG and net-zero principles integrated into concern strategy lone makes a institution much agile and amended prepared to woody with abrupt alteration – whether that’s a breached proviso chain, rising geopolitical tensions oregon the ongoing pandemic-related challenges. To embed net-zero principles into concern strategy, companies request to commencement with their committee first, arsenic alteration is astir effectual erstwhile it comes from the top.

This means that committee members request to champion a civilization of bully ESG absorption and follow an “ESG mindset” erstwhile mounting the strategical absorption for their business. With the close mindset and concern tools successful place, companies tin past physique an effectual interior governance and implementation model – covering areas specified arsenic hazard management, measurement and reporting – to instrumentality their clime strategy crossed the organisation.

With the close mindset and concern tools successful place, companies tin physique an effectual interior governance and implementation model to instrumentality their clime strategy.

—Bonnie Y Chan, HKEX Head of Listing

At HKEX, we spot ourselves arsenic a alteration cause successful Asia’s sustainability transition. As a regulator, marketplace relation and listed company, we thrust the sustainability docket done listing regulation, advocacy and acquisition to promote taste alteration wrong organisations. For example, we supply our markets with a wide model and guidance done our Corporate Governance Code and ESG guide.

We besides facilitate the instauration of a vibrant sustainable concern ecosystem – done partnerships, products and radical – to money the modulation to a much sustainable, low-carbon future. In October 2022, we launched a caller c marketplace – Core Climate – connecting superior with climate-related products and opportunities successful Hong Kong and beyond.

"As the clime changes oregon geopolitical tensions rise, deeper insights connected managing them volition marque operations much resilient"

Amy Barnes, Head of Sustainability and Climate Change Strategy, Marsh

COVID-19. The warfare successful Ukraine. Climate-driven increases successful flooding, drought, and fire. Recent terrible events item the fragility of firm ecosystems.

Businesses that recognize and negociate analyzable risks tin support their bottommost lines and stakeholders portion transitioning to a much resilient model.

Identifying the parameters for resilience requires executives to see risks of disruption beyond the boundaries of their ain plants and assets. Corporate ecosystems widen to cardinal suppliers and their suppliers, to the earthy materials and infrastructure concern continuity depends connected – whether storage, shipping, logistics, packaging, powerfulness grids oregon fuels.

Businesses that recognize and negociate analyzable risks tin support their bottommost lines and stakeholders portion transitioning to a much resilient model.

—Amy Barnes, Head of Sustainability and Climate Change Strategy, Marsh

Each concern narration creates a vulnerability and a request to recognize however fragile it whitethorn marque an enterprise. As the clime changes oregon geopolitical tensions rise, deeper insights astir these exposures and however to negociate them volition marque operations much resilient.

Marsh McLennan is gathering a unsocial level to uncover vulnerabilities. Through a blase operation of proviso concatenation mapping, information imaging and clime science, combined with state-of-the-art hazard modelling, we tin assistance clients quantify the interaction of circumstantial risks successful presumption of downtime and fiscal loss. Armed with this, executives tin instrumentality power of their risks and signifier a sustainable and resilient strategy.

Risk resilience astatine the executive, committee and hazard manager levels emphasizes proactively making amended risk-based decisions, alternatively than reacting to crises oregon events.

According to the 2023 Global Risks Report, organizations should absorption their resilience efforts connected expediting greenish energy, clime and quality investments; improving worker wellness and well-being; and strengthening cyber resilience.

 2023 Global Risks Report

Top 10 semipermanent planetary risks Image: 2023 Global Risks Report

For the green vigor modulation and adaptive hazard mitigation strategies, successful particular, expediting investments is indispensable for semipermanent clime resilience.

Despite expanding planetary concern successful cleanable vigor – expected to exceed $1.4 trillion by the extremity of 2022 – barriers stay to the modulation to a net-zero economy. However, caller approaches to hazard modelling, appraisal and allocation could assistance businesses, governments, and fiscal markets flooded these barriers and hasten the transition.

These approaches whitethorn beryllium applied to newer vigor information and sustainability projects that instrumentality vantage of greenish incentives intended to stimulate economies.

Top