Assume the Scientific Recommendations Will Become Less Flexible
The effects of climate change are moving faster, not slower than expected, so the 80 percent goal may soon be considered insufficient. In one year, PwC’s Low Carbon Economy report went from recommending a 5 percent annual carbon intensity improvement to 6 percent—a sizable difference when the world is only reducing intensity at the rate of 0.7 percent today. Or on other issues, water is not becoming more available in dry regions. And when was the last time we saw a chemical of concern get the “all clear” from scientists? No, much more likely is a widening uneasiness resulting in ever-stricter regulations.
Collaborate with Others When the Science Isn’t Crystal Clear (But Is Indicative)
For example, EMC developed its action plan on phthalates, the controversial chemical appearing in plastics and electronics, “based on recommendations from consortia such as … the EPA Partnership on Alternatives to Certain Phthalates.”
Understand Where Context Matters
Are we talking about water? If so, then setting a goal for a global organization may be useless. Water will be a critical issue in drier regions, and less so in others. And what matters is how everyone in an area uses water, not just your company, so the metrics and goals need to cover the whole watershed. How about carbon? In this case, global science is the guideline. As context-based metrics champions continue advocating for change in how we measure environmental and social performance, keep an eye on the influencers that they’re targeting, including the Global Reporting Initiative, the Global Initiative for Sustainability Ratings, and other standards-setting bodies. All have incorporated or will be adding more context-based thinking over time.
Set the Goal from the Top
This may be the hardest part—harder even than making the cuts. But it’s not much more complicated than this. Diageo’s executives set the 50 percent global reduction target because they “wanted to do something big.”
If your peers aren’t setting the big, science-based goals, it’s an opportunity; if they are, better get going. (The searchable database I’m providing at PivotGoals.com should help you get started.)
Generate a Lot of Ideas
Use employee engagement tools to ask the people closest to operations. Then use open innovation to ask customers, suppliers, stakeholders, NGOs, and everyone else for good ideas.
Go for Scale and Quick Payback
It may seem obvious, but this was the secret of Diageo’s success. Sorting all the ideas by largest carbon impact first and then by ROI hits both targets. And it’s an important step for building buy-in since the quick return on the early projects will convince people in the organization to go further. In a study of 260 large emitters by the CDP (formerly Carbon Disclosure Project), carbon reduction efforts yielded an average ROI of 33 percent, with less than three years to payback.
