Climate Transition expedited by Regulation, Investment Competition and Board Engagement 

  • Summary from a webinar organized by Boards Impact Forums partner Boardman, featuring insights shared by EU Policy Officer Susanna Perko and Boards Impact Forums Chair Liselotte Engstam, facilitated by Boardman Partner Aija Bärlund.  Articles previously posted at Boardman website. 

Despite these extraordinary times, there are some positive news. China, US, Europe, Japan, Korea, India and others are making record-breaking investments in renewable energy and other sustainable solutions. The International Energy Agency (IEA) estimates that the global market for key mass clean energy tech is worth around EUR 600 billion by 2030.

More money than ever is being pumped into climate projects. – Susanna Perko

Susanna Perko works as Policy Officer in DG Climate Action (CLIMA) European Commission and shared the intent and actions of the recently proposed EU Green Deal Industrial Plan.  

Her insights shared at the webinar is summarized in this article:

Climate, sustainability and responsibility – these are the topics boards of directors, company owners and managing directors need to consider more and more.

Board members need to find a common ground and prioritize climate topic on the agenda. The board should discuss what climate topic mean for the company and identify key trigger points for change. The more the chairman of the board raises climate issues in the discussion, the better.

The importance of education in climate topics cannot be underestimated. Climate education should include scenario work and active participation in different networks. Attending networks is valuable because it allows sharing of information and best practices.

“We are experiencing a complex system change where the climate topic is very important.” – Liselotte Hägertz Engstam

Once the climate topic is integrated into the strategy, ambitious goals should be set. There should be a clarity within the firm regarding roles, including the roles of the board and management. Should a new sustainability committee be established?

As the strategy is formed, the board should consider where they want the firm to be in 2030 and 2040, and establish key metrics based on these goals. Businesses should not simply wait for legislation to drive their climate efforts, but instead establish their own key metrics.

For small companies, it can be challenging to address the climate topic on their own. For this reason, companies should take time to work with their suppliers on climate topics. Companies should take time to work with their suppliers to assess their commitment to climate action and determine what they can do together. SME Climate Hub can be a helpful tool to measure firm’s emissions and understand the free tools available to reduce them.

Liselotte Engstam, MSc in Engineering and Sustainability, is the founder and chair of the Boards Impact Forum, and a member of the global board of the World Economic Forums’ Climate Governance Initiative. In the recording above, she shares tools and tips on how companies boards can succeed in an uncertain and fast-changing world where the climate topic is very important.

A version of this article was originally written by Boardman and  shared at Boardman website

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