# C-suite, now’s the time to take decisive action on climate change; here’s how.
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-05-07
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: How the UK's Financial Services Industry Can Lead on
Meta Description: Discover how financial services leaders can lead the charge towards a sustainable future by embracing ESG commitments and clean energy solutions.
URL: https://financedigest.com/c-suite-nows-the-time-to-take-decisive-action-on-climate-change-heres-howhtml

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_By **[Chris Bowden](about:blank),** Managing Director, [Squeaky](about:blank)_

In April 2021 the UK Government announced it will be setting the [world’s most ambitious climate change target in law](about:blank) – cutting emissions by 78% by 2035, compared to 1990 levels. There is no doubt, the UK has raised the bar on tackling climate change. Meeting this new target will require business leaders to stand strong under huge pressure and face the challenge head on. And the financial services industry in particular has a crucial role to play in the transition to a green economy. The question is, though, how can the C-suite take decisive action on [climate change](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document")? Here are five ways they can set their company up to reach net zero, contribute to the bigger goal of limiting global warming and, ultimately, limit further [impact of the climate](https://www.financedigest.com/climate-impacts-heading-to-uncharted-territories-of-destruction-un-chief.html "Climate impacts heading to ‘uncharted territories of destruction’ -UN chief") disaster.

1. **Role model sustainable behaviours:** Financial services firms who are serious about becoming more sustainable, inclusive, and socially responsible must [consider ways to embed these objectives into the organisation and start initiating behavioural change](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year") right away. Most [successful companies](https://www.financedigest.com/setsquared-companys-maths-system-adds-up-to-pitch-perfect-palace-success.html "SETsquared company’s maths system adds up to pitch-perfect palace success") have a mission statement and a purpose, so one way to start would be to consider whether these statements align with their ESG goals. Another route is to become a B-Corp, a for-profit company, which commits to creating a positive impact on society and the environment through its operations. It is worth noting that recertifying UK B Corps (B Corps must recertify every two years) reported an average [growth rate](https://www.financedigest.com/hydrolyzed-collagen-market-sales-is-expected-to-clock-high-growth-rate-by-forecast-2028.html "Hydrolyzed Collagen Market Sales Is Expected To Clock High Growth Rate By Forecast 2028") of 14 per cent, 28 times higher than the national average of 0.5 per cent.

_Without a doubt, organisations who [fall short on the sustainability agenda will fail](https://www.financedigest.com/behind-ftxs-fall-battling-billionaires-and-a-failed-bid-to-save-crypto.html "Behind FTX’s fall, battling billionaires and a failed bid to save crypto") to function in the tough realities of the years ahead. Business [chiefs must live and breathe sustainability](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer"). As Mark Carney has previously stated, “Firms that align their business models to the transition to a carbon-neutral world will be rewarded handsomely; those that fail to adapt will cease to exist.” Unless green-thinking and action [runs through the veins of business](https://www.financedigest.com/4-signs-you-have-what-it-takes-to-run-a-business.html "4 Signs You Have What It Takes to Run a Business"), we will fail to prevent the catastrophic uncoiling of climate change. Titans of [business may exist as a small](https://www.financedigest.com/5-common-tax-mistakes-small-businesses-make-in-australia.html "5 Common Tax Mistakes Small Businesses Make in Australia") collective, but remember, positive change has always been driven by the movement of the minority._

2. **Bust myths:** One of the biggest misconceptions out there is the belief that a mission or purpose that embeds [ESG commitments costs](https://www.financedigest.com/preventing-poor-esg-practices-from-costing-you-investors.html "Preventing poor ESG practices from costing you investors") more. Prioritising ESG doesn’t have to cost the earth – indeed robust actions and transparent behaviours can be adopted with little cost, and yet the value add can be exponential. The key here is to set the record straight amongst the c-suite community, [busting any of those long-standing myths](https://www.financedigest.com/busting-the-myths-on-payments-transformation.html "Busting the myths on payments transformation"), so that they can prioritise ESG commitments.
3. **Go 100% clean:** Renewable energy has a dirty secret. It is often presented as entirely positive. However, ‘renewable’ is not always the same thing as energy from non-polluting, sustainable or carbon neutral sources. In fact, many [energy providers use ‘renewable’ to describe energy from ‘dirty’ sources](https://www.financedigest.com/powered-by-poo-ten-weird-and-wonderful-alternative-energy-sources-that-could-soon-be-powering-our-homes-2.html "POWERED BY POO: Ten weird and wonderful alternative energy sources that could soon be powering our homes") including biomass, which involves burning wood or waste and releasing both solid carbon particles and greenhouse gases like carbon dioxide (CO2) into the atmosphere. While none of the ‘renewable’ energy providers have been deceitful necessarily, some are not entirely clear about their sources. This means making informed decisions can be harder for customers. [Energy is the foundation of any business](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis"), and if you are serious about reaching net zero, it is that businesses responsibility to power its people with energy that has no adverse impact on the environment. This means reduced or no carbon emissions, and no high-level radioactive waste emissions.
4. **Innovate:** When it comes to sustainability, one of the biggest tech developments is the capacity to create, capture and transmit data. [Learning and acting on this data is a critical](https://www.financedigest.com/critical-learnings-in-digital-transformation.html "Critical learnings in digital transformation ") feature of the sustainability agenda. The [reason is because advanced analytics supply businesses](https://www.financedigest.com/reasons-why-you-should-hire-a-business-broker-to-sell-your-business.html "Reasons Why You Should Hire a Business Broker to Sell Your Business") and organisations with insight into how efficient they are, ultimately helping to pinpoint opportunities to reduce environmental impact. [Artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Artificial intelligence") (AI) and Robotic Process Automation (RPA) developments are also making a significant contribution to the sustainability agenda, helping optimise operation efficiency and process accuracy. But innovation is not just about data. Businesses [must innovate their thinking](https://www.financedigest.com/new-uk-pm-must-be-radical-to-stop-power-bill-catastrophe-think-tank.html "New UK PM must be radical to stop power bill catastrophe – think tank") too. They need to be [open to and commit to collaborating in green finance](https://www.financedigest.com/the-future-of-open-finance.html "The Future of Open Finance"), invest in clean technology and use their powerful voices to back social movements that call for positive change. And it’s the c-suite who must lead this charge.
5. **Avoid token pledges**: Too many [companies have embraced a “box-ticking” culture](https://www.financedigest.com/alone-together-how-to-maintain-a-positive-company-culture-while-working-remotely.html "Alone together: How to maintain a positive company culture while working remotely") that encourages the adoption of increasingly standardised ESG activities. Grand pledges and unclear claims will not only erode public trust and invite [backlash against a company](https://www.financedigest.com/companies-in-china-distance-themselves-from-taiwan-amid-pelosi-backlash.html "Companies in China distance themselves from Taiwan amid Pelosi backlash") and its executives, but they will also impede the combined effort needed on the Race to Zero. Companies who are serious about becoming more sustainable and greener, must consider [ways to embed these objectives into the organisation and start initiating behavioural change](https://www.financedigest.com/10-ways-automation-has-changed-the-role-of-the-cfo.html "10 ways automation has changed the role of the CFO") right now. Making pledges towards Net Zero is all well and good, but who is going to deliver on this down the line? C-suite executives need to avoid token pledges and ensure they aren’t leaving their [future leaders](https://www.financedigest.com/young-leaders-forum-jamal-edwards-on-the-past-present-and-future.html "Young Leaders Forum: Jamal Edwards on the past, present and future") with a poisoned chalice. [It’s time](https://www.financedigest.com/why-its-time-to-adapt-to-the-virtual-world-how-to-master-online-negotiations.html "Why it’s time to adapt to the virtual world: how to master online negotiations") to take action now.

Companies have always needed to amend their strategies to respond to market conditions, but climate [change is a different beast because the timescales of the most harmful impacts are far beyond most strategic plans](https://www.financedigest.com/exclusive-olympics-paris-2024-plans-games-relay-changes-fewer-torches-source.html "EXCLUSIVE-Olympics-Paris 2024 plans Games relay changes, fewer torches-source").

If the world has learnt anything because of a year in a pandemic, it’s that it is entirely possible to collaborate to make instant change. As, not only did the lockdown trigger the largest ever [fall in carbon emissions](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time"), but it has also left us safe in the knowledge that businesses can create new working models, and at speed. Excuses are now futile, and frankly the [time is now upon us to take decisive](https://www.financedigest.com/georgias-tbc-bank-slashes-loan-decision-time-with-fico-solution.html "Georgia’s TBC Bank Slashes Loan Decision Time with FICO Solution") action to tackle the climate crisis.

_**-Ends-**_

**Squeaky** [Squeaky](about:blank) is a B2B Marketplace for renewable energy that enables corporate and public sector organisations to buy 100% clean electricity directly from wind, solar and hydro generators.


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