Climate Business Model Transformation & Organization

A rapidly changing climate is the most significant global challenge faced today. The impacts of anthropogenic climate change have never been more evident, with forest fires, flooding, melting glaciers, crop failures, and severe weather events becoming increasingly more intense and frequent.

The most recent IPCC report has estimated that global surface temperatures are expected to reach the 1.5°C level in the next two decades, all but locking us into the impact of climate change until mid-century unless the most drastic cuts in greenhouse gas emissions are taken. If global temperatures continue to rise between 1.5°C and 2°C, the IPCC states that Climate Resilient Development will become increasingly more difficult, and in some cases impossible.

Sia Partners offers a three-step approach to support its clients which includes the identification, aim, and achievement of climate initiatives to shift businesses to transform for the climate.

 Phase 1 – Identify - Measure, Analyse and Quantify the impact of the organisation on the climate

• Utilise our knowledge of business activities and levers to significantly reduce emissions and achieve climate goals
• Quantify the value and investment associated with these initiatives
• Evaluate the existing business strategy to identify existing climate measures and targets
• Determine how the strategy needs to be adapted

Phase 2 – Aim - Define a climate strategy and ambition

• Redefine the vision and strategic objectives 
• Set climate-specific outcome measures
• Map initiatives across the organisation to identify where change is required
• Prioritise and build a roadmap of strategic initiatives

Phase 3 – Achieve - Mobilise the implementation and transition to a climate-centric strategy

• Conduct detailed planning, identify new technology, process optimisation 
• Communicate, implement, and manage the transition internally and to the external market 
• Establish ownership of initiatives with the execution of quick wins to build momentum
• Secure buy-in from internal and external stakeholders by illustrating the benefits and opportunities in achieving climate goals

• The mobilisation of leaders (political support) via the real will of ambition (aim for carbon neutrality, openness to changes, etc.)

• A clear and structured methodology to treat and prioritise the diversity of issues and impacts 

• Appropriation by employees and stakeholders (participation, communication)

Adapting climate initiatives into an organisation can include a commitment to achieve carbon neutrality, which has many economic, social, and environmental benefits for the business concerned. 

The first level of engagement – Ensure compliance and business risks are mitigated

• Compliance with regulations
• Limit the potential consequences of a negative image through actions and outcomes, developing a positive image of climate with customers, stakeholders, and staff. 

The second level of commitment - Commit to initiatives and realise improvements in attractiveness and performance

• Meet the expectations of customers, employees, and stakeholders, who are increasingly aware of climate issues and the targets set at a national and international level.
• Create a new range of products, and innovative solutions and address emissions across the value chain, working with suppliers up and downstream to achieve goals. 

The third level of engagement - Commit to ensuring the adaptability and resilience of the organization

• Anticipate and mitigate physical risks (scarcity of resources, disruption of the logistics chain) and transition risks (political and legal instability, social influence and reputation, market evolution, and technological disruptions). 
• Challenge internal practices and the organization to gain efficiency. 

To help adapt any Business towards Sustainability, Sia Partners offers an effective development process with our 3-step methodology.

Our accelerators: 

• Sia Partners climate analysis centre lab

• Strategy & Business transformation expertise

• Weather and climate data to measure physical risks

• Energy expertise: support for decarbonisation strategy, M&A for the energy sector

• Proprietary AI Data analysis technology

• Measurement and evaluation of ESG and customer data

• Find sustainable growth drivers

One study estimated that companies experience an average internal rate of return of 27% to 80% on their low-carbon investments.

• CSR and engagement

A sustainability and corporate performance report found that 88% of companies with good ESG practices have better operational performance; with 80% showing positive stock price performance correlating with good sustainability practices.

• Planning for stricter regulation

92% of institutional investors want companies to identify and report ESG factors that materiality affect their business performance.

• Increased Reputation Among Stakeholders

Employee loyalty was 38% higher in companies that implement sustainable efforts. 

• Capitalising on Business Change

Prioritising sustainability allows for new technology and product/service opportunities, leading to business growth and job creation. 

• New customer acquisition

Products marketed as sustainable grew 5.6 times faster than those that are not. In addition, overall sales revenue can increase up to 20% as a result of transparent corporate responsibility practices

Identify 

1. Apply our ‘Climate Lens’ matching country and sector, with known requirements and climate obligations. 
2. External and internal scan to identify levers to drive a reduction in waste, and energy, and derive value from adopting climate changes. 

Aim 

    3. Quantify the value of initiatives and validate through workshops. 

    4. Support you to redefine your strategy, updating vision, mission, strategic objectives, and outcome measures. 

    5. Determine where existing strategic pillars need to change and if stand-alone climate initiatives require their own pillar. 

 Achieve 

    6. Define climate-related initiatives for delivery and work with organisations to implement them successfully.