There is no time to wait for the transition to a clean green economy.
If we are to have any chance of achieving the 1.5C Paris targets, action needs to be urgent and decisive. And what is clear, is that we cannot rely on politicians to drive this change. Whilst they can and should play a role, industry has to take the lead. Not just for the sake of the planet, but for the survival of their business. The coming transition has been creeping slowly, slowly which is the nature a an exponential curve — the compounding growth imperceptible initially. Then it builds, and suddenly it is everywhere
. Those who miss this boat will be stuck with outdated technology, at the wrong end of the industry cost curve and without access to capital to make the change — shareholders having fled to greener pastures long ago.
Key to facilitating this transition is for decision makers across industry to have a common language and understanding of the principles, politics and science driving the change. The following series of posts will form a short course of curated information and links to give this leaders this common reference.
Companies’ management quality is assessed against a series of indicators, covering issues such as company policy, emissions reporting and verification, targets, strategic risk assessment and executive remuneration. Based on their performance against these indicators, companies are placed on one of five levels:
Level 0 — Unaware of (or not Acknowledging) Climate Change as a Business Issue
Level 1 — Acknowledging Climate Change as a Business Issue
Level 2 — Building Capacity
Level 3 — Integrated into Operational Decision-making
Level 4 — Strategic Assessment
A personal self assessment prior to this course will give you an idea about where you stand. Working through this course will give you knowledge to move you and your business to a higher level of climate commitment.
[see below for more details on the individual questions at each level]
Each of the levels has a series of questions against which the company is judged
Level 0: Unaware of Climate Change as a Business Issue
1. Does the company acknowledge climate change as a significant issue for the business?
Level 1: Acknowledging Climate Change as a Business Issue
2. Does the company recognise climate change as a relevant risk and/or opportunity for the business?
3. Does the company have a policy (or equivalent) commitment to action on climate change?
Level 2: Building Capacity
4. Has the company set greenhouse gas emission reduction targets?
5. Has the company published information on its Scope 1 and 2 greenhouse gas emissions?
Level 3: Integrating into Operational Decision Making
6. Has the company nominated a board member or board committee with explicit responsibility for oversight of the climate change policy?
7. Has the company set quantitative targets for reducing its greenhouse gas emissions?
8. Does the company report on Scope 3 emissions?
9. Has the company had its operational (Scope 1 and/or 2) greenhouse gas emissions data verified?
10. Does the company support domestic and international efforts to mitigate climate change?
11. Does the company have a process to manage climate-related risks?
12. Does the company disclose Scope 3 use of product emissions?
Level 4: Strategic Assessment
13. Does the company disclose its membership and involvement in organisations or coalitions dedicated specifically to climate issues?
14. Has the company set long-term quantitative targets for reducing its greenhouse gas emissions?
15. Does the company’s remuneration for senior executives incorporate climate change performance?
16. Does the company incorporate climate change risks and opportunities in their strategy?
17. Does the company undertake climate scenario planning?
18. Does the company disclose an internal price of carbon?
19. Does the company ensure consistency between its climate change policy and the positions taken by trade associations of which it is a member?