I’m Lizzie O’Leary, a podcaster and journalist, and that is Series 3 of the present. And I’m excited to say I’m joined by a brand new co-host.
FEMI OKE: Hello there! I’m Femi Oke, a broadcaster and journalist. I’m actually trying ahead to becoming a member of you this season, Lizzie. And we even have a lot to be enthusiastic about! Over the subsequent few months, we’re going to cowl all the pieces from quantum computing, to what’s subsequent for AI, and the position concepts play in creating development for corporations and entire economies.
LIZZIE: We will cowl all of this with the assistance of businesspeople, lecturers, and civil society leaders, who’re researching, main, and disrupting in these fields— exploring the position enterprise performs in these world challenges and alternatives.
FEMI: We’re beginning Series 3 with a particular stay episode, recorded on the bottom at Climate Week NYC. And whereas I wasn’t there with you, Lizzie, I can’t wait to listen to that dialog proper now.
LIZZIE: When you consider the warming planet, what phrases come to thoughts? Risk? Disruption? Crisis? But are these concepts sufficient to encourage motion? We’re going to have a look at one other set of concepts which are essential to motivating change: hope, alternative, and resilience. Today, we’re stay at Climate Week NYC, the most important local weather convention of its type…to get a way of the alternatives for companies and local weather options they could be a a part of. I’m joined by Helen Clarkson, CEO of Climate Group. Welcome…
HELEN CLARKSON: Hello!
LIZZIE:…and Renate de Lange, PwC’s Global Sustainability Markets Leader. Hello.
RENATE DE LANGE: Thank you.
LIZZIE: I need to begin with you, Helen. The theme this yr in New York City is “It’s Time.” Time for what?
HELEN: So, we selected the theme “It’s Time” as a result of, you already know, we actually need to push this level about pressing motion. I believe, we come collectively annually, we have now annual Climate Week NYC. We’re typically speaking about urgency, truly. But typically individuals are enthusiastic about 2030, 2050. And we actually need to make the purpose, we’ve obtained to do issues right now. We’ve obtained to do issues tomorrow. And so we need to give individuals that sense of, Okay, what am I going to stroll away from right here? What motion am I going to take? Twenty twenty-four goes to be, is on monitor to be, the warmest yr on file. We can see the affect, however one way or the other there’s nonetheless this hole between what we all know must be achieved and the, kind of, doing of it. And quite a lot of that’s to do with these long-term objectives, that are actually essential. But we additionally need to give that actual sense of urgency and motion, and push that. So we wished a theme that basically introduced that sense collectively. And we put our personal world to-do listing on the market as nicely, in order that lets say, “Okay, that is what we expect must be achieved,” however invite others to carry their ideas as nicely.
LIZZIE: Renate, if enterprise leaders are listening to that sense of urgency, understanding that it’s time, what’s getting in the best way for them?
RENATE: That’s an excellent query. And it’s additionally attention-grabbing to see that final yr within the CEO survey, 22% of CEOs stated, Okay, my enterprise goes to be disrupted within the coming three years by local weather. Last yr, it was 30%. So you see a rise of 8%. But on the similar time, that implies that 70% of CEOs didn’t prioritize it but. So it’s not within the high three priorities. And I can think about that we actually want to maneuver past what’s the downside? however how can we remedy it? Where’s the enterprise alternative of transferring quick? And I believe the excellent news is we see increasingly more tangible enterprise advantages of local weather motion, and I hope that does the trick.
LIZZIE: Helen, we’re speaking about companies, however clearly this isn’t enterprise leaders alone. So what position and possibly how giant a task do policymakers play right here?
HELEN: I imply, the 2 go actually collectively. So, coverage is basically essential, and I believe one of many issues I’ve been speaking about lots this week is companies actually need regulation. And while you speak about enterprise and regulation, the idea is companies don’t need regulation. They hate regulation, proper? But truly, what we hear from companies is they need a stage taking part in area. They need to know what the principles of the street are. They need to perceive how Paris Agreement, which has been applied on the nationwide stage, like, how is that truly driving us? Because if you happen to give us that taking part in area, that framework, then we will carry our aggressive abilities inside that, you already know. Take trend corporations, they compete on design, proper? They don’t compete on the place their power has come from. So you possibly can collaborate on that—the place your aggressive benefit is and the place are you able to collaborate. We see this actually intricate connection between companies and policymakers. So, the types of issues which are stopping the tripling of renewable are allowing, siting, all these actually boring regulatory issues, however they’re the issues which are actually stopping it. It’s not a lot about cash. The cash’s able to go. I used to be listening to yesterday that in China, they will principally get a wind farm up in like three, 4 months, whereas it could take us years.
LIZZIE: Businesses, Renate, at all times reply to the prospect to earn money, to have alternatives. Are there examples that you’ve of actual alternatives for companies that get this proper?
RENATE: So, it’s attention-grabbing, and it additionally begins with do they actually perceive the place the danger is and pivot that into a possibility. I used to be with a shopper of mine just a few weeks in the past, and I stated, “Okay, what are you going to distribute in just a few years?” And they stated, “Why?” I stated, “I see you do quite a lot of fertilize. Fertilize shall be topic to carbon tax. I’m unsure whether or not it’s going to be imported in just a few years, but when it’s not imported, it won’t be within the harbor. If it’s not within the harbor, it is not in your automotive.” So if you happen to suppose by means of and also you mix it with the truth that shoppers will push you to assist them decarbonize their worth chain, put money into digital fleet, then you might suppose, Okay, does it make sense to do transport service, or ought to I supply optimizing actions throughout a particular geographic space? And then, when you’ve that dialog with shoppers and so they suppose, Okay, that is actually cool. And if you’re the primary movers available in the market, what a distinction might we make in our future enterprise fashions.
LIZZIE: Helen, we’re in a second the place know-how, notably synthetic intelligence, is rising by leaps and bounds. And I’m wondering, given the urgency of what’s occurring proper now, the place does tech match into this image?
HELEN: It’s an excellent query. It kind of relies upon what you imply by tech, proper? Because I’ve simply been operating a panel on AI and listening to that sort of, and individuals are very conscious of this, the power demand of that, but additionally the potential and listening to about how we will perceive forest canopies higher. You know, I used to be listening to earlier this morning about satellites, actually some thrilling stuff. But truly, quite a lot of what we have to remedy the local weather disaster already exists. And it’s about issues getting as much as scale. And there’s additionally some kind of hidden know-how I used to be listening to yesterday. And that’s the thrilling factor about Climate NYC is you get all these new concepts. But there are methods of adjusting cabling to permit issues to run a lot quicker. People get very enthusiastic about silver bullets. And there’s an entire sort of wave of considering that’s all about breakthroughs, breakthroughs. You know, we’d like new tech. We’ve obtained quite a lot of what we have to do. What we have to do is deploy it at scale and determine how you can get the issues we’ve already obtained to scale shortly as a way to enable new know-how to come back by means of.
LIZZIE: And does that imply issues like carbon seize? Does that imply scaling these up or considering of completely outside-of-the-box new tech?
HELEN: So, quite a lot of it’s about, return to the allowing and siting. Getting renewable electrical energy on the grid as quickly as doable is the highest, high precedence, and that’s grid infrastructure. Carbon seize we’re going to want, however the know-how isn’t there but. So one of many balancing acts within the subsequent few years is making an attempt to verify there’s as a lot funding into that sort of coverage stuff and upgrading our grids as there is considering new know-how. And we will’t look ahead to that. Every atom of carbon we emit goes to take a seat within the environment. So it’s about getting as a lot renewable electrical energy up onto the grids as shortly as doable, whereas additionally bringing new applied sciences on-line. So, sadly, the reply to it’s we’d like all of it in all places as shortly as doable.
LIZZIE: Renate, you talked about tangible examples, however I’m curious, you already know, if you happen to might stroll right into a boardroom and say, “Here are the highest few issues it is advisable to do proper now.” What are they?
RENATE: So, I believe that’s additionally good, as a result of quite a lot of CEOs need to have, principally, a to-do listing, so, the place to start out? And though it’s maybe probably the most boring, I believe it’s actually related to get the info proper, as a result of then you already know greatest the place to make the intervention.
LIZZIE: This is the what will get measured will get managed kind of factor?
RENATE: Yeah, but additionally what will get measured will get additionally the fitting intervention. So then you possibly can prioritize precisely the place you must do the intervention first. So the place am I most in danger? And the place—ought to I derisk my provide chain? But additionally, which assets are the costliest? And how can I trick that round? Basically, on the subject of the info problem, it’s actually related to grasp which information to seize first, which brings probably the most worth. So it’s a mix of, which information do I have to be compliant with the regulation? Which information do I want to grasp the place my largest dangers are? Which information do I want to grasp the place I could make the intervention with the best affect? And how do I prioritize it? So, get the info proper, perceive your threat, innovate in direction of these alternatives, and actually attempt additionally to collaborate with the ecosystem, I believe—and make it good.
HELEN: Can I add one? Equally boring. What I assumed you may say is power effectivity. And one factor that’s actually attention-grabbing, there’s a lot must be achieved by means of power effectivity. And I believe CEOs don’t like to listen to it, as a result of it sounds inherently boring, but additionally the, kind of, working assumption that we will’t probably be being inefficient. I run an awesome enterprise. I haven’t left greenback payments on the ground anyplace. So how are you going to inform me that I may very well be 4, 5% extra environment friendly? But truly, after we have a look at power effectivity, and there was, you already know, at COP28, an settlement that we’d double power effectivity by 2030, there hasn’t actually been sufficient tangible that’s achieved on that. And there’s a lot that we may very well be saving, in order that after we then put renewables and stuff on high, and as we transfer in direction of electrifying all the pieces, we’ve already sort of banked the financial savings. So that’s an space that corporations actually, really want to suppose laborious about. And once more, it’s insulation, heating, cooling—all these sort of, you already know, the fundamentals of enterprise.
RENATE: This can be a nice instance. It’s in your ft, however you simply must seize with it. This alternative. And I additionally suppose what you are able to do with power, you possibly can principally do with each scarce useful resource. Again, as a result of quite a lot of the know-how is already obtainable to do that.
LIZZIE: One factor that generally will get in the best way is, if you happen to’re a public firm, your shareholder. Shareholders need to see sure issues. How are you able to carry shareholders alongside and overcome the, generally, the idea that exists for public corporations that that is going to price an excessive amount of cash?
RENATE: Yeah, however I believe it’s actually related not just for shareholders, however I believe, at giant, to point out the enterprise case of sustainability. And it actually creates tangible advantages for corporations. And fortunately, we see the primary proof of that. And when corporations make local weather motion, we see a development in profitability. We see a development in resilience. But I believe displaying that enterprise case, together with the monetary efficiency, which is coming alongside, is basically related, to take each stakeholder alongside.
LIZZIE: Helen, while you’re not doing this convention and when you find yourself speaking to companies, what are you telling them to do?
HELEN: We do inform them to set long-term targets, however then work again to what it is advisable to do right now and the way are you going to suppose in a different way about collaboration. I believe, one factor that’s actually attention-grabbing is, you already know, we’re each European, there’s a totally different view of this, relying on the place you’re on the earth. And quite a lot of US corporations, I believe, are annoyed as a result of they’ve obtained this noise, they’ve obtained this type of ESG backlash, however they’re world corporations, proper? So European regulation, ultimately, is driving quite a lot of what they’re having to do now. So I believe it’s a really difficult time, as a result of, you already know, if a shareholder says, “Why are you doing this?” “Because we have now to.” It’s not an ethical place that they’re taking. You know, the EU has actually pushed rules. It’s not all good, however it’s actually altering the panorama for enterprise and compliance. That’s a struggle most likely the NGOs have fought greater than anybody is to push it into the area of the CFO or others. Because it’s obtained to be at, as you say, the center of the enterprise. And then they will transfer on to trying on the alternative agenda, and there’s a big alternative agenda for many huge corporations.
LIZZIE: I believe typically when we have now conversations in regards to the local weather disaster, in regards to the urgency behind it, it could really feel scary or terrifying. What are you listening to this week that makes you optimistic?
RENATE: Well, I believe I noticed just a few issues. I believe increasingly more folks speak about alternative. I believe, if you happen to evaluate it with just a few years in the past, it was actually, Okay, it is a downside and we admitted the issue. And you see actually a shift into, Okay, however we will remedy [it] if we step ahead and we do that collectively, utilizing principally quite a lot of the know-how already in place. And I believe, one factor we didn’t contact upon but, however it’s additionally related, utilizing the expertise of the younger folks. If you look, in each group, so many younger folks, it’s their future, who carry the brightest concepts, probably the most new, revolutionary concepts. But it is advisable to create a room for them to flourish and produce these up. Numerous good concepts get caught within the mid layers of administration. So, if I’ll ask each CEO, create a room for these huge revolutionary concepts. I believe then we go a lot, a lot quicker than we do right now.
LIZZIE: And what have you ever, clearly you’ve heard lots this week, however are there issues the place you thought, Oh, that’s good?
HELEN: Well, truly, one of many issues that makes me optimistic is simply the sheer variety of folks which are right here and the sheer variety of occasions there are. And we’ve seen that rising annually. And seeing the quantity of people that need to come from huge enterprise, from provide chains, from governments, you already know. We’ve had mayors, governors. Actually, when the UNDP [United Nations Development Programme] did a survey just lately, 80% of individuals around the globe need governments to take stronger motion on local weather. So I believe, coming to New York this week, Climate Week NYC, is a sort of embodiment of all the pieces that’s occurring. And, partly, I would like folks to go away with a sense of, like, I’ve obtained a staff, and we’re all engaged on this and taking hope from simply the quantity of power there may be round local weather. And that we have now to be reasonable, but when we will harness that and drive ahead—the standard of the conversations is nice.
LIZZIE: Helen, Renate, thanks a lot for becoming a member of us on Take on Tomorrow.
RENATE and HELEN: Thank you.
LIZZIE: Well, that brings us to the top of this episode, recorded stay at Climate Week in New York. Join us subsequent time, after we’ll be a know-how that would revolutionize the best way companies—and the world—work: quantum computing.
GUEST: You might imagine quantum? Why ought to I care? You ought to care as a result of even when 1% of what we anticipate involves be, it’s going to exponentially rework your online business.
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