Climate change is one of the most pressing problems facing our world today. It affects everyone - from families worrying about their children’s futures, to pension funds deciding where to invest. It is in the interests of everyone that we see systemic change that averts climate catastrophe and unlocks the potential of green growth.
The signing of the Paris Agreement in December 2015, and the speed at which it was ratified, signals a change in the way governments are addressing climate change. National policies are being put in place more quickly to accelerate the transition to a low carbon economy.
Businesses need to be prepared and publish adequate reporting to respond to emerging risks and opportunities generated by climate change. While companies might need to take into account the physical risks associated with climate change, they also - and more importantly - need to address the transition risks that climate change presents. This includes emerging regulations, new technologies, shifting supply and demand, and finally, damage to brand value and loss of customer base due to shifting public sentiment. Assessing physical risks solely would only (and maybe) suffice for the short-term. Should your organisation strive for the long term, it is quintessential to assess the transition risks it will face. Consequently, insufficient disclosure hinders the capital markets from making well-informed asset allocation and risk pricing decisions, and could pose a financial stability problem.
We’re proud to help our clients to have a positive impact, drawing on our deep expertise to assess the risks and harness the opportunities. Acting responsibly is no longer a choice - it’s a business imperative.
1. Rationale - Why is this important for you?
- Across the globe, societies, businesses, industries and our natural environment are under threat from current and future impacts of rising global temperatures caused by record levels of greenhouse gas emissions (GHG) in the atmosphere.
- Global GHG emissions must halve by 2030 and reach net zero by 2050 to prevent a catastrophic impact on health, livelihoods, economic growth, food, water and human security, and vital ecosystems.
- Urgent action is needed to reduce the emissions gap and build resilience to the current and accelerating impacts of climate change.
- Investors, companies and governments alike have responded with a step-change and are committing to net zero at a startling rate.
2. Objectives - What are you looking to achieve?
- Put sustainability and societal impact at the heart of your strategy
- Move to low carbon and climate resilient future.
- Manage ESG and sustainability risks responsibly.
- Decarbonise operations and supply chains (ex, sustained reductions in travel and the increased use of zero carbon energy).
- Embed the implications of climate change and other Environmental, Social and Governance (ESG) related factors across value chains, from strategy to implementation.
- Continue to advance corporate reporting standards that champion comprehensive non-financial reporting practices.
- Understand demands of existing (and potential future) customers
- Set and align with Science-Based Targets.
3. Solutions - How can we help you achieve your objectives?
- By conducting a carbon footprint analysis to determine your CO2 emissions for Scopes 1, 2 and 3 and how to reduce your emissions.
- By setting science-based targets and short- and medium-term emissions reduction targets that are consistent with Paris-aligned pathways.
- By leveraging the latest science, analytical approaches, technology and innovation, to help you economically and effectively transition to net zero, and preserve your competitiveness and protect the natural environment.
- By giving you clear and actionable insight throughout your journey, from strategy to execution and implementation.
- By also helping you measure, evaluate and communicate your results.
- Net Zero by 2030
- TCFD & Climate Reporting
- Training on Transition to Low-carbon Economy
Net Zero by 2030
Reaching net zero by 2050 is the only way we can give ourselves a more than 50% chance of avoiding a catastrophic climate breakdown. Because of this, committing to net zero is now a strategic issue for investors, companies and governments. But achieving net zero will require radical enterprise and supply chain transformation, including identifying and scaling emerging technologies and disruptive business models.
With expertise across climate change, strategy and business transformation, we can help you transition to a net zero future. By mapping clients’ carbon footprint and developing net zero targets and strategies, you can completely decarbonise while remaining resilient to any impact of future climate change.
PwC is proud to be a knowledge advisor to Microsoft on its net zero transformation. Using PwC’s experience in supporting companies on net zero and on business transformation more broadly, we have come together to create a guide to help companies as they move from ambition to action.
The Building Blocks of Corporate Net Zero Transformation - produced by PwC and commissioned by Microsoft - is the first company research contribution to the Transform to Net Zero initiative. It sets the scene for what is meant by net zero transformation for businesses and provides a platform that is consistent with the narrative for the work of the Transform to Net Zero initiative.
The report - intended for business executives and function heads - outlines the 9 key building blocks for business transformation needed to deliver net zero. It provides a coherent and good- practice framework that business stakeholders can use to inform and guide them on how they embed net zero into a company’s strategy and operating model. It is intentionally holistic, wide ranging and sector neutral, such that it can be leveraged by any company.
What we offer: The Pathway to Net Zero
In order to achieve the building blocks, we use our Pathway to Net Zero Framework. Through this framework, we can advise our clients on how to identify their climate risks, set a strategy to mitigate and adapt to them, transform to become a net zero organisation and disclose their intent and progress to stakeholders.
TCFD & Climate Reporting
The Task Force on Climate-related Financial Disclosures (TCFD) is an advisory body set up by the G20 to address concerns around insufficient disclosure of climate-related risks and opportunities for businesses. The Task Force is made up of 32 members, including PwC Partner Jon Williams, drawn from a range of industries and countries, with key perspectives as reporters of information or users of such information. The Task Force published its final recommendations in June 2017, which are intended to apply to all companies with listed debt or equity in the G20, and additionally to asset managers and asset owners (recognising that these organisations are typically unlisted).
Training on Transition to Low-carbon Economy
The next 10 years are crucial for organisations. Those that will successfully prepare for the challenges climate change carries will thrive, while those that either don’t take the challenges seriously or delay taking the necessary steps will cease to exist.
For example, the EU goal is to halve emissions by 2030, which will largely impact the energy sector (as the biggest emitter) and as a result it will need to scale up on renewable sources, implement carbon capture and storage mechanisms or run on alternative fuels.
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