The issue of climate change has never been more important than today. The World Economic Forum´s 2022 Global Risks Report described how current government commitments will not be enough to achieve the 1.5° C goal set on the Paris Agreement.
With our current commitments, we are expected to reach a 2.4 ° C warming by 2030 and the most optimistic scenario of global warming after 2030 reaches 1.8° C.
Under this scenario, climate change mitigation is ever more important. Businesses, particularly smaller ones, can play an important role to fight climate change.
But how can they do it?
Find new ways to generate value
We currently live in a world with growing population, limited resources, and sensible environments. There is a demand for businesses to change the way we make things and transition towards a more sustainable business system. It is essential then, that we find new ways for companies to generate new value through Sustainable Value Creation.
It demands creativity and willingness to think outside the box, to observe and identify areas of opportunity in different sectors of the business. It requires that large parts of the production of goods and services change to gradually increase the company´s sustainability performance.
Build strategic relationships with stakeholders
When a business wishes to extend their activities in meaningful ways, companies can get build strong relations with its stakeholders, who held particular interests in the activities of the company. This allows for meaningful communication and engagement throughout the entire life of the company, and not only during specific projects. This can help a business to identify new opportunities to improve and reduce its emissions, as well as include all or most stakeholders in the development of solutions.
This can allow for companies to develop more integral solutions for climate-related issues and develop more effective strategies.
Invest in renewable energy and energy efficiency
Most of the energy used currently in the world comes from fossil fuels such as oil and coal instead of renewable sources of energy, such as solar and wind power. While changing the way our societies produce energy is important, we also have to consider how current practices of citizens and companies affect how much energy we consume.
Small businesses have the opportunity to not only invest in renewable energy, but also reduce the average energy consumption to create more energy efficient societies. This is crucial if we are to achieve the climate target established in the Paris Agreement which are slipping ever further out of our reach.
Conclusion
No single action alone will be enough to tackle the challenges that we are currently facing. Instead, we need broader and more complex strategies that are focused on long-term solutions rather than short term gains.
For that, companies need the best guidance and expertise possible to address their goals and Sustainworld Solutions can lend meaningful support. With rich experience helping clients find answers to these challenges, we can not only grow and make business endeavors profitable, but protect the environment as well.
References World economic Forum (2022). Global Risks Report 2022. Insight Report. Recovered from: https://www.weforum.org/reports/global-risks-report-2022/
