Care, or it’ll cost you

Changing technology isn’t enough, people are the key to creating impact

Many of the world’s biggest companies have set ambitious science-based targets to reach Net Zero greenhouse gas emissions by 2050, 2040, 2030 or even sooner. They’re promising to make radical changes to their business models, investments and technology.

But can they really pull it off? Or are these pledges just empty promises for future generations to deliver? With a topic and challenge so big, it’s no surprise that the conversation covered a lot of ground in such a short space of time, so here’s a few highlights:

• The average UK pension is contributing 23 tonnes of carbon per year per employee. With some funds only needing 70% of their securities that are ESG gold standard, workplace pensions could significantly impact our carbon footprint (in a generation). Cushon have developed the world’s first net zero workplace pension scheme — find out more.
• Tuning out rather than confronting the “psychological trauma” of admitting the scale of the climate crisis? The Inside Out project focuses on how as a global community, we must navigate climate and environmental crises together — enormous changes that require us all to level up. It talks about individuals as becoming ‘guides’ — find out more.
• No greenwashing or hollow PR stunts please. This year, the government and businesses of all sizes around the UK are committing to do their bit to cut carbon emissions and protect the planet — find out more about the UK Business Climate Hub and the Race to Zero.
• Businesses have to care, or it will cost them. Firstly, the immediate impact of climate change on business operations — physical impact. Weather-related losses are already soaring: between 2017 and 2019 their annual costs averaged $210bn, twice as high as ten years previously, according to reinsurer Swiss Re — find out more.
• Climate relevant legislation is on the rise. Over 1,900 pieces of climate legislation were counted around the world, with almost two-thirds enacted in the past 10 years so business leaders should expect ever more intense regulation, driven both by governments and by the demands of customers and consumers — find out more.
• The STEM pipeline isn’t where it needs to be. The next generation already knows the importance of our climate agenda; they don’t need to be bought in, but we do need better education. As a dominant contributor to climate change, currently accounting for 60% of total greenhouse gas emissions, the energy system of the future won’t be the same today — find out more.

“You’re like a speedboat piloted by James Bond, and sometimes we feel more like a container ship trying to get through the Suez canal… but, we align on purpose” FTSE 100 Energy company to entech pioneer.

• Bringing purpose to life. Most organisations in the energy sector are truly purpose-driven, but whether they’re a 3-person startup or National Grid, which employs almost 30,000 people, engaging and motivating internal teams is a big challenge.

The need for “nudging” stood out — typically when we hear the word we think of individual behaviour change, but it’s clear that we need to see positive gradual change at a number of levels. In order to encourage consumers to change their day-to-day behaviour and make the right choices, businesses need to offer compelling sustainable products and services, and to encourage them, the government needs to create the conditions to make that as easy as possible.

There’s a role for businesses internally as well — we heard that it’s not just technology and engineering that will get us to net zero, but empowering the people who are making it happen. This requires leaders to help employees understand their organisation’s purpose and how it contributes to the transition to net zero. Then connect the dots so people feel empowered to take an active role in tackling the challenge of climate change.

Magnetic is a design and innovation company that helps design better futures. We’ve worked with global businesses to build capabilities, products, services and transform organisations. If you’d like to find out more about our capability building drop us a line.