With recession talks everywhere, the beginning of 2023 looks a bit grim for corporate and financial organizations. Our CEO Rachel Delacour shares key trends and insights to help you weather the storm and sustain your business over the coming months.
2022 was a big year for climate, with customers, regulators, and employees holding companies accountable for their sustainability targets. But, recent discussions with business leaders showed me that global supply chain issues, inflation, and Covid are still top of mind – and often take priority over climate action.
So, what are the key trends and risks of 2023? And how to keep them on your radar while taking action for our future? Here are some insights to help you navigate these uncertain times.
1. How can we stay true to our climate commitments while keeping the business afloat in difficult economic times?
Dig into your carbon data. Taking accountability for your carbon and ecological footprint is the only route to business longevity. It’ll help anticipate the increasing number of climate and supply chain disruptions. A data-driven climate strategy is also key to being more resilient to carbon taxes and climate disclosure regulations rising globally.
2. How can we ensure that the new climate disclosure regulations don’t slow down our business activities?
This year, many climate regulations will come into place in Europe, including the UK’s TCFD framework, SFDR, and EU taxonomy. Some business leaders see them as a burden, but they can actually become a competitive advantage for companies operating in Europe. You’ll get ahead of the climate game, transitioning to a low-carbon model, and setting standards that the rest of the world will replicate.
👉 The latest on climate regulations
3. How can I effectively lead my company’s climate efforts?
Climate is a collective game. Get all key functions involved, including Finance, IT, Corporate Social Responsibility, and Strategy, when building and implementing your carbon reduction plan. With this multi-stakeholder approach, you can get accurate data on the footprint of your operations, better track your emissions, and seize new climate opportunities.
👉 Embrace a collaborative approach to carbon reduction
4. How can we avoid the pitfalls of making wrong claims – and greenwashing?
Stay away from making ‘net zero’ claims. They lock businesses into the same rigid pathway, which often puts their brand and financial health at risk. The priority is to start reducing now and work towards medium and long-term targets. A solid decarbonization strategy should be based on your priorities, bandwidth, and maturity. That’s how you’ll hit your targets, stay compliant, and make a real difference.
👉 Be ambitious, realistic, and immediate – most importantly, make it yours
5. With the economic recession, should we expect less investment in climate tech?
Climate tech founders are on the right side. Climate is the investment opportunity of the century – one that’s here to stay and impact all of us. As we’re not on track to hit 1.5C by 2050, we’ll have to rely on technology to adapt to the consequences of climate change. In spite of the recession, investors will gain at investing in the sector, especially in Europe, a flourishing ground for climate tech.
👉 Top tips to grow your startup
However you decide to handle the current situation, my #1 tip is to do it with humility: Educate yourself, rely on your people (and experts 👋), and learn from your wins and mistakes. That’s how you’ll keep your bottom line and hit all your targets – business and climate-related.
I believe climate-informed leaders are the future of the business world. And since a lot of women have been occupying sustainability roles, I’m looking forward to seeing a wave of female executives rising to the top.
