JAs there is no single solution to the climate crisis, being a sustainability-driven company requires a multi-pronged approach to carbon reduction and emissions reduction. Here are six important facts that every business should keep in mind as they walk their sustainability journey.
Hard data is the gold of decision making
A phrase often said in data-driven sustainability circles is “what gets measured, gets managed.” In the world of corporate carbon accounting, this fact should not be ignored. Carbon calculations can be a complex task, as companies work internally to collect key data from various departments and regional offices around the world to transform data—total consumption, fuel miles, number of hotel days, liquid volumes and hours of operation. kilowatt – a general measure (metric tons of carbon dioxide equivalent) to quantify an entity’s contribution to climate change.
But the very act of finding data, categorizing it into “business activities,” and analyzing the calculated results allows a company to understand where in its operations carbon emissions are greatest. Carbon accounting allows companies to focus on key operational activities and prioritize the most effective sustainable initiatives to implement.
Typically, companies take a 1-2-3 approach to their carbon reduction efforts. First, they quickly adopt energy efficiency measures such as installing LED bulbs and smart lighting systems in areas where consumption is sporadic. This is what Bob’s Red Mill, a whole grain manufacturer and client of mine, handled first at their Milwaukie, Oregon manufacturing plant. With the guidance of energy experts at the Energy Trust of Oregon, Bob’s was able to reduce energy consumption by 54% in one of its top manufacturing lines while increasing product output by 12% through energy-efficient transportation improvements in 2023.
Second, the business pursues operational initiatives that have measurable carbon-reducing effects without compromising the company’s growth goals such as downsizing offices, consolidating warehouses, and converting vehicle fleets to electric – all strategies AVI-SPL, a solutions company of audio video technology that has worked with my sustainability consultant, TripleWin, is currently monitoring its global footprint to report a downward trend in its greenhouse gas emissions. And third, eliminate waste streams from landfills through opportunities to divert, donate, and plant. Danone North America, a food and beverage company, is working to achieve an internal goal of zero waste by 2025 by distributing non-marketable but still edible products to food banks; sending garbage to fields for animal feed or to be used as compost; and converting waste streams into natural gas through anaerobic digestion.
Do not ignore proven solutions
For organizations, the path to sustainability is well-established. Proven climate solutions are plentiful. Renewable and carbon-free energy sources generate more than 40% of the world’s electricity demand today. New solar and wind capacity is expected to more than double in 2028 from 2022 levels, helping the world meet the Paris Climate Agreement’s path to zero emissions by 2050.
More than ever, we are seeing meaningful solutions for decarbonisation at scale. Meta, a social media and technology conference, announced that it has achieved zero carbon status in its global operations in 2020 mainly by equipping its data centers and offices with 100% renewable energy systems: solar panels, microgrids, and backup battery power. reserve.
Electric vehicle (EV) approvals, meanwhile, are on a tear with predictions of 17 million new EVs to be sold in 2024 or one in every five cars manufactured. Amazon, the e-commerce and cloud computing giant, has just revealed in its 2023 sustainability report that it deployed more than 11,000 electric delivery vehicles made by Rivian (now up to 1,000) to make its last-mile deliveries across North America and Europe, and plans. to expand its EV fleet to 100,000 by 2030.
Collaboration is important
Just as the best decisions are made with many heads in the room, sustainability efforts are stronger and results are more successful if organizations take a collaborative approach to achieving goals. Within the industry we call this fueling your value chain. In 2020, Microsoft, a global technology company, set itself ambitious sustainability goals: to be carbon negative, water positive, and zero waste by 2030. It knows it cannot achieve those goals without advancing the efforts of its suppliers toward those aspirations as well. Through its Supplier Code of Conduct, the company asks its suppliers to measure their carbon footprint and report that data annually to the company itself and to CDP, an international non-profit organization that oversees the disclosure of the environmental impact of companies and countries. In 2020, 12% of suppliers reported their environmental impact. Just one year later, 87% did. Today, that environmental disclosure is a must-have plan to remain in Microsoft’s ‘circle of trust’. To further spur progress toward the Paris-aligned sustainability goals, Microsoft developed a free Productivity Impact Dashboard, providing its customers with sustainable insights into how the Microsoft Cloud is being used.
Accountability leads to meaningful action
Business continuity requires consistency, consistency, and increasing effort as interim goals are met, new processes are streamlined, and a level of competence and proficiency is achieved. This enables sustainability to be embedded in the company’s products, operations and organizational culture.
Holding businesses accountable for their sustainability statements and actions has allowed real and measurable progress to be made in this area. If a company becomes a supplier to Walmart, a global retail organization, it is required to sign on to Project Gigaton where production data is disclosed, shared, and where suppliers begin their carbon reduction journeys. Walmart also mandates that all of its suppliers disclose to the CDP, where reporting companies are ranked according to the progress they have made on their sustainability journeys, and scores are shared with Walmart for each of its suppliers. Walmart launched the Gigaton Project in 2017 with the goal of reducing or avoiding one billion metric tons (or gigatons) of greenhouse gas emissions from its global value chain by 2030. Earlier this year, Doug McMillon, CEO of Walmart , announced that the company was successful. its “Moonlight Project Gigaton goal” six years earlier than expected, equivalent to eliminating Japan’s annual carbon emissions.
Engagement wins hearts and minds, and helps achieve goals
Millennials and Gen Z have a natural alignment of value and sustainability. They, along with Alpha, are the generations that will be most affected by global warming in this century. According to Deloitte’s 2024 survey, 79% of millennials and 77% of Gen Z want the government to play a role in pushing businesses to address climate change. These young professionals want a seat at the table to help businesses take sustainable action, whether they have “sustainability” or “environment” in their job titles. Fresh Del Monte, the world’s leading producer, distributor and wholesaler of vertically-cut fruits and vegetables, is one company on the move, having won the 2024 SEAL Business Sustainability Award, and becoming a signatory to the Fresh American Food Created. Waste Agreement. The company also understands the urgency of providing continuing basic education to its employees. Increases employee motivation to advance the company’s efforts to reduce unnecessary food waste and associated carbon emissions through employee engagement competitions in its manufacturing plants.
The work is hard but rewarding
Corporate sustainability can be a messy business. The sandboxes are damaged. So does cooking. But both are fun and satisfying. Sustainability can be too. At the beginning of a company’s sustainability journey, collecting data is a challenge. Data sets are often missing or confusingly incomplete. Additionally, customer expectations and new legislation are moving targets, leaving companies feeling as if they are always holding their breath. On the positive side, the act of going through the process of data collection and measurement reveals information gaps to be better understood and brings a deeper understanding of carbon reduction initiatives to be implemented.
Sustainability is progress, not perfection. It’s about committing to the effort and communicating the journey honestly. Show a sense of stubborn optimism. The climate problem is ours to solve and it can be solved well. Stay motivated, focused, and optimistic.
Gaertner is the founder and CEO of sustainability consultancy TripleWin Consulting, a technical advisor to the Loopt Foundation, and a contributing author. Proven Climate Solutions: Leading Voices on How to Accelerate Change.
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