How to Accelerate Climate Action

I'm excited to share the launch of "Bold Measures to Close the Climate Action Gap," the latest report from Boston Consulting Group (BCG) and the World Economic Forum Alliance of CEO Climate Leaders. https://lnkd.in/e8MCFKAm    We see businesses doing more to tackle climate change, but collectively, the world is moving way too slowly. This new report focused on opportunities for companies and governments to translate their individual actions into more substantial global progress. The bottom line is that our individual efforts must be more geared to driving systemic change. The report highlights five ways for companies to do this, including: 1. Accelerate supplier decarbonization. In many companies, suppliers’ emissions are 3x to 8x their own Scope 1&2. Cutting the first 50% of many products’ supply chain emissions can be achieved with an end-price impact under 1% 2. Enable customers to make greener choices. Product redesign, circularity, reducing customers’ energy consumption can substantially lower the emissions footprint of many products. 3. Drive change with peers in your sector, especially in supply chain ‘pinch points’: Ten players or less control more than 40% of many key markets; clearer product labeling is another great area of opportunity 4. Engage in cross-industry partnerships, especially large-scale buying groups, to mobilize capital and accelerate development and scaling of advanced technologies 5. Advocate and support bolder policies. First, make sure you and your lobbying partners are not harming climate progress in your government engagements. Then, look for opportunities to go further to be an effective partner to governments to encourage bold and pragmatic changes in incentives, policies, and reporting. The report is filled with real life examples of what companies are doing today in each of these areas. Thanks to Pim Valdre and Pedro G Gomez Pensado from WEF and my colleagues Dr. Patrick Herhold, Jens Burchardt, Cornelius Pieper, Edmond Rhys Jones, Trine Filtenborg de Nully, Galaad Préau and Natalia Mrówczyńska for leading the work on this important report. And to my Alliance co-chairs, Jesper Brodin, Christian Mumenthaler, Ester Baiget, and Feike Sijbesma for your continued leadership.

I met Devin when he shared on Fortune 500 pharma company, Bristol Myers Squibb's journey measuring & reducing their Scope 3 (value chain) emissions. Here's his 4 pieces of advice.. For context: As of July this year, BMS has received approval for its near-term and long-term Science-Based Targets. Given BMS’s enterprise footprint involves >80% of Scope 3 GHG emissions, one of its near-term goals is to engage 75% of its suppliers to develop SBTs by 2028 From my perspective, this is admirable, provided support is offered to their suppliers, as it will help drive further Net-Zero action throughout their supply chain Here's our summary of his 4 key pieces of advice to sustainability professionals tackling Scope 3 emissions reliant on suppliers 1) Be an influencer to accelerate the sustainability agenda your organization This requires partnering both inside the business, but also with suppliers. Ethical and responsible purchasing needs to be a priority from the beginning, and sustainability questions should be asked to suppliers during any RFP process. Procurement teams should include sustainability in meetings with suppliers on an on-going basis, making it a standing topic on the agenda. 2) Segment your supply chain to prioritize efforts BMS performed a climate maturity assessment to segment its suppliers and prioritize its engagement efforts — knowing the company cannot feasibly engage thousands of suppliers at once. BMS started by looking at its top emitting suppliers and then assessed their maturity — finding one third to be very mature, a third just starting out, and a third somewhere in between. The company then prioritized suppliers with low maturity and/or a higher perceived ESG risk. 3) Partner with industry peers to create a collaborative environment In Pharma in particular, companies have been working collaboratively with their peers, through the Pharmaceutical Supply Chain Initiative, to harmonize resources and offer subsidized programs to suppliers, acknowledging the burden faced by them. One such program is Schneider Electric’s Energize, which offers access to education on renewable energy purchasing, and acts as an entry point for suppliers who can choose to enter buying cohorts and partner with other companies to buy renewable electricity. 4) Take your time and be comprehensive “I would just be a little cautious when you see companies who are sprinting out in front, because of the complexity, particularly in the supply chain — there's just fundamental challenges that folks are not going to be able to solve overnight. And doing the maybe less sexy work of just engaging stakeholders, setting targets, building a language of sustainability — that's the work that may not make the headlines, but that's what's going to change the world in the coming years.” 💬 What responsibilities should larger companies own compared to suppliers (and vice versa) when it comes to their emission impacts?

How connected is your business to its sustainability goals? When we think of the supply chain, it’s easy to picture a seamless, interconnected system—a strong link between all teams, departments, and external partners. But in reality, many organizations operate in silos, with teams working in isolation. This separation doesn’t just slow down projects; it can also prevent meaningful progress toward sustainability goals. Senior leaders may tightly control projects, while departments work without knowing each other's strategies, leading to inefficiencies and missed opportunities. Collaboration isn’t just a tool—it’s a mindset that drives progress, allowing us to pool expertise, identify blind spots, and create a shared path forward. When it comes to sustainability, this coordinated approach is essential. Take the We Mean Business Coalition, which has brought together over 1,300 companies committed to climate action. Their SOS 1.5 Initiative goes beyond goal-setting by providing practical roadmaps tailored to specific industries. This collaboration allows businesses to break down complex challenges into actionable steps, accelerating their sustainability journey with meaningful, measurable progress. For businesses just starting this journey, collaboration doesn’t have to be overwhelming. You don’t need to overhaul everything overnight. Begin with a small, focused team—your champions of change. These individuals can initiate open conversations, break down traditional hierarchies, and set an example of cross-functional cooperation. Encouraging honest, solution-oriented discussions and creating safe spaces for feedback can transform isolated efforts into a unified strategy. So, Here’s something to consider: What are the barriers to collaboration within your organization? How can breaking down these walls amplify your sustainability efforts? As Helen Keller said, “Alone, we can do so little; together, we can do so much.” Sustainability challenges are complex, but with genuine collaboration, we can move faster, smarter, and with greater impact.

Weekly Monday Sustainability Post: To have a chance of limiting global warming to 1.5°C, global emissions must decrease by around 7% annually until 2030, but they are still increasing by 1.5% today. World Economic Forum, in collaboration with Boston Consulting Group (BCG), has put out a report on the bold actions that governments and companies need to take to close this emissions gap. Corporate actions include: --Accelerate supplier decarbonization (well over 10% of global emissions are in the supply chains of the 1,000 largest companies globally). --Enable customers to make greener choices (reducing the first 50% of many products’ emissions can be achieved with an end-price impact of under 1%). --Drive change with peers in their industry, especially in supply chain "pinch points" (as 10 players or less control more than 40% of many key markets). --Engage in cross-industry partnerships, especially large-scale buying groups (mobilizing less than 10% of the 1,000 largest companies’ capital expenditure and purchases could close the climate funding gap). --Advocate and support bolder policies (the advocacy of 95% of global companies is currently either misaligned with the Paris goals or sending mixed signals). Government actions include: --putting a price on carbon. --accelerating net-zero targets to close the 600+ gigaton national ambition gap --increasing financing and green procurement. --removing obstacles. --considering “more drastic measures” if progress remains too slow. Lots more information is in the report linked below. There's also fantastic graphics packed with useful information. I particularly liked the graphics on the percentage of global emissions covered by a carbon tax or emissions trading system (page 9), which governments have net zero-commitments with each government shown relative to its share of emissions (page 11), and the share of top global companies engaging with suppliers, per type of engagement strategy (page 17). #emissions #climateaction #climatechange #sustainability