Influence, a Just Transition, & Supply Chain Decarbonization
by: Daniela Grava | February 21, 2024
GreenBiz 24 brought together over 2,500 business leaders and innovators for three days of cross-industry collaboration on what’s next in decarbonization, biodiversity, supply chains, social impact, strategic communications, and more. Some macro themes of the conference included the power of influence in making systemic shifts to reach ambitious goals, contributing to a just transition, and supply chain decarbonization.
Under the macro themes of the conference, ClimeCo’s ‘on-the-ground team’ noted five related key takeaways:
1. AI Will Play a Catalytic Role in Optimizing Sustainability Innovation.
From enhancing supply chain transparency to optimizing resource management using AI-driven analytics, companies are leveraging AI to enhance efficiency, minimize waste, and make progress against their sustainability goals. The impact of AI extends to advanced climate modeling for better climate prediction, precision agriculture for sustainable food production, improving greenhouse gas (GHG) footprint quantification efforts, streamlining ESG data analysis and reporting, and influencing circular product design. Through predictive models, AI is driving efficiency in the renewable energy and transportation sectors – and is only expected to grow. The key is striking the right balance between AI and expert-driven solutions. Microsoft, for example, is using advanced analytics and AI with its ESG data to accelerate impact and drive innovation as part of the company’s larger playbook for accelerating sustainability solutions with AI.
2. Environmental Disclosure Is a Strategic Imperative, With California Leading the Way.
Driven by an evolving regulatory landscape, sustainability reporting should be a business imperative. Although achieving harmonization in reporting standards may be a long-term goal, companies can effectively navigate the current landscape by recognizing commonalities among various reporting frameworks, such as CDP, and regulatory directives, such as CSRD, CA SB253, and SB261, and the proposed SEC climate disclosure rule. Investing in robust internal reporting systems, engaging suppliers intelligently, and leveraging AI and consultants are other key strategies for navigating the ever-evolving and complex landscape.
3. Voluntary Carbon Markets Play a Pivotal Role in the Global Path to Net-Zero, but There’s a Need for an Industry Standard for High-Quality Credits.
Emma Cox, ClimeCo’s Senior Vice President of Impact, and Nick Deak, Associate of Sustainability, Policy & Advisory, hosted a roundtable discussion around the role of carbon credits in global decarbonization amid a narrative of skepticism that has resulted in missed opportunities for net-zero progress. The consensus: a company should be on a science-based decarbonization journey and leverage the voluntary carbon market to take responsibility for emissions along the way, but there’s room for growth in creating an industry standard for high-quality credits.
One of the most significant areas of conversation centered around low-quality credits (i.e., those that are not credible, overstated, or rely on flawed methodologies and incentives with little oversight). These tend to be lower in cost, which should not be determining criteria. Low-cost, low-quality credits have clouded the positive role that verified, high-quality credits can play when viewed as a financing mechanism for decarbonization projects that wouldn’t otherwise happen. High-quality credits are credible, ensure measurable and verifiable emissions reductions, adhere to recognized standards, and avoid double counting or leakage. Essentially, credits should not replace companies’ efforts in reducing their GHG emissions; instead, they should be considered a transitional tool and additive to existing reduction efforts.
4. A Just Transition Intersects Equity, Opportunity, and the Environment.
With social justice and environmentalism intrinsically linked, businesses must take a holistic approach to fully shift from extractive to regenerative practices. Wawa Gatheru, Founder of Black Girl Environmentalist, and Derrick Johnson, President and CEO of the NAACP, discussed how a just transition involves protecting workers’ rights, fostering wealth distribution, and creating opportunities for marginalized communities. For Gen Z, ESG commitments from prospective employers and companies selling products are pivotal decision-making factors. Embracing a just transition is a strategic imperative and a pathway to building trust with Gen Z and fostering a sustainable and inclusive future.
5. Influencing Consumer Behavior Change and Supply Chain Decarbonization Are Key Drivers for Lowering Scope 3 Emissions.
Businesses must strategically decarbonize their supply chain to address Scope 3 effectively, which involves reimagining processes, engaging suppliers, and adopting innovative technologies. B2C companies such as Procter & Gamble and Starbucks underscored the power of shaping consumer behavior to lower their Scope 3 emissions significantly. Through product innovation and marketing campaigns that embed sustainability with superior product performance, successful behavior change strategies are rooted in specificity and actionability and benefit the consumer. For example, bringing a reusable cup to Starbucks will earn them extra points, and washing their clothes in cold water will save them money on their energy bill – with no tradeoffs on the quality of their drink or the cleanliness of their clothes.
ClimeCo has experts to help your company on its decarbonization journey through strategic advisory and implementation as we collectively work toward a more equitable, sustainable future – learn more here.
About the Authors
Daniela Grava serves as ClimeCo’s Manager of Impact. She helps companies drive meaningful progress in responsible business. She is experienced in helping clients better communicate their stories around environmental sustainability and social impact, including ESG strategy and reporting, while navigating the industry’s changing landscape.
Before ClimeCo, Daniela was an Account Manager within the Impact & Sustainability practice at MSLGROUP where she worked with Fortune 500 consumer goods giant Procter & Gamble and its various brands in advancing progress and driving share of voice across environmental sustainability, social impact, DEI, and purpose, laddering up to the company’s 2030 goals. Daniela also worked at Edelman, the world’s largest public relations consultancy, where she helped lead sustainability and social impact communications for TAZO tea, helping build its equity in the environmental justice space and announce its large-scale business transformation to a regenerative organic model, including new ESG goals across seven pillars. Daniela is committed to leveraging her skills to drive impact with businesses of all shapes and sizes and advance a circular economy.
