Insights That Matter on The Transition to a Green Economy
Insights That Matter on The Transition to a Green Economy
In our 4th annual Disruption Index, climate change was shared as a top challenge for business leaders.
Its disruptive impact works in two directions.
One is the transition to a green economy. As energy production shifts from fossil fuels to renewable energy, companies revamp operations to reach Net Zero goals, government policies and regulations change, and a so-called circular economy emerges where waste is eliminated or recycled.
The other transition is adapting to, and sometimes suffering from, the effects of climate change. As the number and scale of calamitous weather events increases, sea levels rise, and some regions become less productive or habitable.
The more business and society can mitigate climate change through a transition to a green economy, the less they will have to adapt to it; and the more they can mitigate and adapt, the less they will suffer.
ESG is no longer a nice to have, it’s a business imperative. And 2023 is the year when ESG strategies will––and must––get pragmatic.
In this edition of Insights That Matter we look at how different industries are starting to put this into action.
New EU sustainability reporting requirement offers significant opportunities
A new corporate sustainability reporting directive (CSRD) will enter into force for the 2024 fiscal reporting year. The strengthened and broadened reporting expectation for businesses operating in the EU may be weighing on the to-do lists for 2023, but CSRD should be far more than just an intense tick-box exercise.
So, what is CSRD and what value can firms find in its implementation? Our experts explain.
Telcos: Powering through the rising energy cost challenge
For an industry grappling with flat revenue forecasts, and rising operating expenses, the rising energy costs has created further pressure on telecom operators. Driven in part by the continuing increase in mobile network traffic and data usage, there are huge carbon consequences beyond the cost challenges.
So, how can telecommunication providers be more strategic in their approach to fundamentally address these issues, reduce energy costs, and support environmental goals all at the same time?
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The grocery industry is ready to get back to basics
The question of what the next “normal” for the grocery sector will look like is being hammered out by industry leaders. Top of mind, alongside issues like supply chain disruptions and economic concerns, is the rise of environmental, social, and governance (ESG) initiatives.
The point many leaders are making, is that what is good for ESG can be good for business. Our retail team examine what this means and share some of the conversations they’re hearing from retail leaders so far in 2023.
Look for automakers to lean on the supply chain to meet climate net-zero commitments
Many automakers are publicly committing to meet net-zero emissions targets by midcentury, if not sooner. To do so, our experts estimate that suppliers must drive 25% to 50% of the improvements, because Scope 3 emissions—those that come from indirect sources across the supply chain—account for the lion’s share of total automotive-related emissions.
While talk of decarbonizing supply chains is easy, the actual work is extremely complicated. Success for all will hinge on making smart, pragmatic decisions, based on deep analysis and a commitment to speed.
Sustainable aviation beyond CO2
The aviation industry's approach to ESG must accelerate. Firms often singled out as disproportionately responsible for global emissions need to craft sustainability strategies that consider the environment, but also tackle the social and governance challenges that represent serious hurdles to future competitiveness and financial health.
AlixPartners aviation experts look at how firms can derive a holistic approach and take a broader view on ESG and sustainability, to lead the way instead of playing an expensive game of catch-up.
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