The webinar discusses transition planning and the role of the board, with a particular focus on the manufacturing sector. We thank Climact for their support in organising this webinar.
The speakers include:
Jerome Meessen, Associate Partner at Climact
Anne-Laure Demarcy, Global Head of Environmental Sustainability at UCB
Jerome emphasized the importance of aligning targets with climate science, increasing regulatory requirements, and the need for robust transition plans including critical steps in the process and the role of the board. Anne-Laure then shared insights on developing a transition plan, leveraging existing networks, and the ethical responsibility of companies to address climate change. (Further highlights available below)
Slides:
Recording:
Here are some highlights from the webinar:
Credible transition plans are crucial for companies to anticipate climate risks, meet EU regulations, and align with agreed scientific targets to reduce greenhouse gas emissions.
EU targets net zero emissions by 2050, driving regulatory responses like the Fit for 55 package. Financial tools aid in redirecting investments towards climate-friendly options. EU's Green Deal covers all sectors from agriculture to energy, translating into regulations like Fit for 55. Financial regulations aim to shift investments away from fossil fuels.
EU implements tools like EU taxonomy and TCFD framework for sustainable activities and risk assessment. CSRD directive enhances transparency on climate actions and sustainability.
Transition plans are required for organizations to navigate transition risks and capitalize on opportunities arising from climate change.
Reputation risks are evolving into legal risks due to potential disconnect between claims and actions, leading to lawsuits.
Transition plans can enhance reputation, attract talent, open new markets, and increase confidence of investment partners. They also offer efficiency, compliance, and resilient supply chains.
Developing climate action plans requires measuring emissions, setting targets, engaging stakeholders, and implementing changes to reduce greenhouse gas emissions and achieve Net Zero status.
Developing a sustainability strategy requires commitment, delegation, and training, while transition plans must align with scientific frameworks, involve multi-dimensional action plans, and engage stakeholders.
The Board's role in setting the transition plan involves commitment, delegation, and support from various teams like CFO, risk team, and ExCo.
Training on climate change for all internal teams is crucial to ensure understanding, urgency, and alignment with business goals.
To develop transition plans, companies should consider:
Exploring potential actions through brainstorming, external expert support, and clear methodologies is crucial for identifying emission reduction strategies.
Prioritizing actions based on various key performance indicators (KPIs) beyond greenhouse gas emissions, such as financial and reputational impacts, is necessary for effective planning.
Utilizing tools like cost abatement curves to rank options, implement short-term actions, and invest in more cost-intensive measures is vital for achieving sustainability targets.
Adapting transition plans over time by deep diving into internal culture, carbon pricing, and business model changes is crucial for long-term sustainability and success.
To navigate uncertainties like climate change, developing a culture of risk anticipation is essential. Working with scenarios and flexible tools internally can aid in projecting and adapting to future shocks and disruptions.
Adapting to changes in consumer behaviors and client relationships is vital for resilience. Supply chain disruptions can be mitigated through risk anticipation culture. Utilizing scenarios and flexible tools internally can help in stress-testing plans. Being ready to adapt to new technologies and consumer trends is key for future success.
Environmental sustainability should be viewed as a change management program, empowering employees to understand and contribute to reducing carbon emissions through engagement and proposing solutions.