Q&A: How can CSOs better engage with the C-suite to achieve net zero?
Nearly every major company has committed to achieving net zero emissions within the next decade. But despite these widespread commitments, there remains a large gap in execution.
Carbon accounting platform Normative's Carbon Accountability report recently found that over 70% of the 200 businesses surveyed are not calculating their downstream and often hard to abate scope 3 emissions. The survey also revealed that businesses do not have the carbon visibility needed to reduce emissions and reach net zero. "As a result, the pursuit of net zero can become marginalised, either as a symbolic gesture or confined within organisational silos, in a business ecosystem that traditionally favours short-term gains over long-term sustainability," Normative chief executive and co-founder Kristian Rönn tells CSO Futures.
With still-forming standards and a generally shaky economic climate, some businesses may be pushing their sustainability goals to the backburner. But Rönn argues that if businesses can accurately trace and monitor their emissions, the journey to net zero can unlock positive new opportunities.
Why is it important for businesses to continue to prioritise net zero even amid trying economic times?
Rönn: While it's true that the full benefits of sustainability unfold over time, prioritising net zero even during economic uncertainty is crucial, as it can deliver immediate cost savings. By focusing on energy efficiency and waste reduction, businesses can significantly reduce operational expenses. These savings can quickly offset any initial investments in sustainability initiatives and contribute directly to a healthier bottom line, making it a smart move even in challenging times.
Thinking long-term, sustainability is both ethically sound and strategically advantageous. It attracts eco-conscious consumers, investors, and talent, boosting your brand and unlocking new markets. In addition, achieving net zero safeguards your business against future risks like carbon taxes and regulatory shifts. Prioritising sustainability now, even amidst economic uncertainty, is a strategic move for a responsible future and long-term success.
What is stopping the C-suite from achieving net zero?
Rönn: Several factors limit the C-suite’s progress to net zero, including short-term financial pressures, lack of accurate emissions data, and insufficient integration of sustainability into business strategies. Many executives prioritise short-term growth and perceive sustainability goals as secondary.
The challenge lies in obtaining a detailed carbon footprint, especially indirect supply chain emissions, and turning data into actionable insights. Normative's Carbon Accountability report reveals that over 70% of businesses surveyed are not calculating Scope 3 emissions. Overcoming these barriers requires viewing sustainability as a core business driver, supported by reliable data and a collaborative approach across the organisation and its value chain.
How can CSOs better engage other C-suite members in sustainability performance?
Rönn: CSOs can better engage other C-suite executives by contextualising sustainability within business objectives, highlighting regulatory imperatives and competitive opportunities. Sustainability delivers a clear ROI: reduced operational costs, energy savings, and enhanced brand value. Presenting these financial benefits in their own language proves to fellow C-suite leaders that sustainability is a smart, profitable investment.
Leveraging data-driven insights from carbon accounting, CSOs can demonstrate the tangible benefits of sustainable practices, such as cost savings. Collaborating with internal teams to integrate actionable insights into business strategies and fostering a culture that values sustainability will help align the entire C-suite with the company’s net-zero goals. Emphasising the long-term payoffs and competitive advantages of sustainability can bridge the gap between ambition and action.
What could climate success look like in the next several years?
Rönn: Climate success in the next several years involves the widespread adoption of comprehensive carbon accounting, with businesses across all industries actively measuring and reducing their total carbon footprints. This universal adoption will transform how we approach sustainability on multiple levels.
When comprehensive carbon accounting becomes universal, consumers and investors will gain a clear understanding of the impact of the products and businesses they support. This transparency allows them to make informed and decisive purchasing and investment choices, prioritising companies that are genuinely committed to reducing their environmental footprint.
Moreover, businesses will be held accountable for their sustainability plans. With detailed emissions data available, we can monitor emissions increases and reductions year to year, ensuring companies stay on track with their commitments.
In addition, policymakers will also benefit greatly from universal carbon accounting. Equipped with accurate emissions data, they can make informed, effective policy decisions that drive further reductions in global emissions. Critically, accurate and actionable data will enable the creation of regulations that not only enforce compliance but also encourage innovation and sustainable practices across industries.
Member discussion