INSIGHT ISSUE 01 | 2021

12 Enabling the Digital and Energy transition named after the 13th SDG “Climate Action” to stimulate corporate learning and collaboration on taking action against climate change THE INITIATIVE Goal 13 Impact Platform I see encouraging evidence that CEOs are increasingly courageous when it comes to setting climate change targets, and this appears to be accelerating in the run up to COP 26. The study suggests over one- third of executives have set carbon reduction goals, and nearly all (88%) executives say they have set environmental goals in areas other than carbon. Encouraging… but more to be done. The CEO ultimately answers to the board, so the board’s leadership is important here too. Boards need to evolve from a “compliance driven” approach to one that integrates value-enhancing sustainable ESG practices directly into the business through direct and regular board oversight, executive compensation, and consideration of sustainability/ ESG given the same attention as short term financial success. Clear communication of why sustainability and climate change are critical to long term value creation is key to effective advocacy. With this established, management performance and attendant incentives need to incorporate sustainability and climate change goals; at all decision-making levels in the organisation. But this needs to be both hearts and minds: management should become “sustainability evangelists” inside the organization in terms of education and engagement, and outside with business partners be they customers or suppliers. I am really positive about the potential for digital technologies to contribute, and led a project last year for GESI that produced a report: Digital with Purpose, which showed how the development and deployment of digital technologies can help drive achievement of the SDGs. We have seen an acceleration of understanding of the role of technology in combatting climate change, and indeed contributing to it if we are not mindful, over the COVID era. A simple example is the increased substitution of CO2-heavy travel with digital communications, whether internally, in external functions like sales, or as a core product or service e.g., conferences. We are also seeing an increase in technology facilitated improvements intheenergyefficiencyofbuildings,infrastructure,productionprocesses, and across entire sectors. Data is the raw “material” that facilitates the design and implementation of these changes, enables measurement and enhances communication. Lastly, and perhaps most importantly, digital and data are at the core As a follow-on question from above, do you have any advice for managers how to advocate/implement this kind of innovation? How can CEOs be a little bit gutsier when advocating for these issues to their boards? Digital is an increasingly important enabler of climate initiatives. Greater focus on climate initiatives happens at a time at which most organisations are becoming more sophisticated at embedding digital technology, partly catalysed by COVID-19. What are some of the ways that companies are using digital to enable their climate initiatives?