Sustainable Business: Building to a Net Zero Posture
According to the United Nations, “climate change is the defining issue of our time, and we are at a defining moment.”
Introducing sustainability practices that are good for the planet may also be good for businesses. Consumers are becoming more concerned about climate change and, according to research conducted by McKinsey & Company, they are willing to pay more for sustainable products. One out of four consumers (across geographic regions and socioeconomic groups) say they plan to focus more on environmental issues when they shop.*
As climate change concerns continue to grow and trigger changes in purchasing behavior, more and more businesses are committing to achieve net-zero greenhouse gas emissions by 2050. However, finding the right path to net zero varies considerably from business to business, and implementing a credible net-zero plan can be a challenging endeavor for many companies.
If your business is considering moving to net zero, the following steps may be helpful in guiding your effort:
- Prioritize net zero in your business strategy and product and service innovation.
- Identify the investments, partnerships, governance, and technologies that will underpin your organization’s plan to deliver against its net zero goals.
- Socialize your strategy and make it personally relevant to staff and management.
- Publicize your efforts to leverage your “green” awareness and encourage other organizations to follow suit.
- As you work to reduce emissions arising directly from your own company’s activities, think also of how you can reduce emissions from your suppliers and from customers using your products.
Moving to net zero is a laudable goal that is critically important for the future of the planet, but companies that take it up need to be prepared for a transformative journey that may require new ways of looking at how they do business, from sourcing to production to distribution.
If your business is taking steps toward greater sustainability, please reach out to your Washington Trust Relationship Manager for information on financing that can help you realize your goals.
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