Since the commencement of Cop26 in Glasgow, we’ve seen myriad carbon pledges and promises, with leaders around the world nailing their varying colours to the mast around carbon reductions. At home, climate action has gained some momentum, with the passing of the Climate Action Bill and recent publication of the carbon budgets.
The tone in Glasgow reflects the mood in Ireland, that we now need to quickly pivot to action. The Climate Action Plan 2021 represents a watershed in our national sustainability journey, requiring immediate and collective mobilisation of citizens, business and Government towards our common climate and sustainability goal. It is the time to leave any remnants of inaction and procrastination behind – we need multilateral action now to give our best shot at significantly reducing our carbon emissions.
With the publication of the Climate Action Plan 2021, we must be minded to learn the lessons of both what went well and what did not with our last plan. We only managed to achieve about 75 per cent of the goals that were set out in the 2019 Plan, and indeed only managed to lock in one of the central elements – the carbon budgets – more than two years later in 2021. It speaks to both having a strong realism of how complex some actions will be, but it also speaks to the need to ensure that the action plan is appropriately resourced and supported.
Recent EY research showed that citizens are willing to play their part and change their behaviours, but they’re relying on Government and businesses to play their part, too. People want better incentives for the retrofitting of homes, more investment in greener public transport, greater incentives for electric vehicle use – but they also expect Government to hold business to account; 43 per cent of consumers feel the Government should introduce stronger penalties for major carbon emitting industries and organisations. All of this speaks to an increased pressure on us all to act comprehensively and robustly on a variety of fronts.
The EY State of Sustainability report was undertaken to explore how businesses see themselves with respect to sustainability, but also to see if action and vision are aligned. The findings show that while the majority (61 per cent) of respondents said there was good or complete awareness of sustainability considerations and implications across their organisations, more than half are defaulting to minimum standards - 53 per cent say that compliance with government regulations and requirements on sustainability is sufficient, and a very low 22 per cent have adopted a science-based target to guide them on their decarbonisation journey.
It is not too late for businesses to alter their focus
However, it is not too late for businesses to alter their focus. With the publication of the Climate Action Plan 2021, we have a chance to get this right and we are in the fortunate position where immediate action can make a difference in the near and medium terms. This is an opportunity for Government to take a central leadership role and exhort businesses to make the necessary changes for the country to achieve our climate goals. The fact that so many businesses believe meeting regulatory targets is sufficient action for them to take is clear evidence that they will follow the Government’s lead when it is given.
The EY State of Sustainability report identified four cohorts of businesses on a continuum when it comes to their readiness for the changes ahead: Deniers, Survivors, Activators and Pioneers. No matter the current state of maturity, every organisation needs to do more around sustainability. Today's good can become tomorrow's average. Each journey will look different, but each organisation must take action to do more, to do better, whatever that looks like for them. EY has just launched a new free Sustainability Maturity Assessment, designed to helps organisations of all sizes to understand where they are on their journeys relative to others, with guidelines for how to improve their sustainability efforts.
However, there are numerous quick wins that businesses large and small can achieve in striving to make a difference that don’t involve a huge budget or resource drain.
1. Make changes to your travel and expense policies
Over the last month, we’ve seen a phased return to the office and the emergence of hybrid working models. We as businesses must welcome this flexibility and encourage a hybrid working model that not only works for individual businesses and employees, but also helps avoid a mass increase in travel and consumption that would be detrimental to Ireland’s emissions targets. By adapting travel and expense policies, organisations can also incentivise the use of certain modes of transport over others such as rail travel, as well as facilitating schemes such as Bike to Work. Putting in place the right infrastructure for employees when they are in the office is also important, starting as small as putting in more bike racks, or creating more space for changing or showering facilities, all the way up to putting in place EV charging facilities.
2. Carry out a review of your pension options for employees
One thing we’ve taken from the pandemic among many learnings is that we as a society are becoming more and more ethically minded and conscious of where our money is going when we spend it – so it only makes sense that we apply that principle to the investment opportunities we give employees. That means having a proactive conversation with your pension provider to see what opportunities you can give your employees to direct their funds towards more sustainable investments. This is a simple step that can make a big difference in supporting investments that are trying to turn the dial on climate change.
3. Re-evaluate your procurement processes
The first step here couldn’t be simpler and involves businesses disclosing in their procurement policies their commitment to sustainability and seeking the same from their suppliers. What better way to establish business relationships that support a positive halo effect on the environment, than to ask outright how potential partners are striving to be sustainable, too? Beyond that, we encourage our clients to review their supply chain to assess how sustainable the suppliers they partner with are and if there are concerns there, consider making a change. Nothing makes a difference like putting your money where your mouth is.
Even if the points above seem overwhelming, every business can – and should – take small steps. Start the conversation – talk to your customers, talk to your suppliers, talk to your employees about sustainability. These suggestions might seem small, but if every business and every citizen across Ireland adopted more of these shifts towards sustainability, think of the collective impact that could have. As a business community we have a responsibility to play our part in Ireland’s sustainability journey, from the smallest SME to the biggest multinational.
We cannot afford to sit on our hands. Small steps will build to great momentum.