The role of leaders has never been more crucial in a world confronted with climate change and environmental degradation. Global economic and business viability are threatened by climate change, which represents a huge threat in every sphere. Leadership can shape the future by taking proactive steps toward climate change action and sustainability, no matter what size the company is. Leaders who prioritize and report on these issues will not only fulfill their ethical responsibilities, but also unlock numerous benefits for their organizations.
There are many forms and models of leadership within organizations and societies. There are several leadership styles relevant to the climate agenda, including Transformative Leadership; leaders who motivate and support people, organizations, and society to innovate and change; and Distributive Leadership; leaders who ensure that responsibility and authority for change are distributed throughout and that people are empowered to take action. Transformation is needed across society, but individuals and organizations must take responsibility for implementing it. Leadership plays an increasingly important role in society as we face unprecedented challenges related to climate change, biodiversity, and energy security. Even though the policy and regulatory environment is highly ambitious, implementing it is a challenge. In order to meet our 2050 and 2030 climate goals, we must demonstrate climate leadership now.
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As a result of knowing the importance of climate change to their long-term success, an increasing number of companies are taking action on it. According to the ‘Climate Leadership Now’ report leading businesses should respond to the climate crisis with ambition, then deliver on that ambition with action and speak up to secure wider change through advocacy.
Ambition
Ambition for climate change is a commitment to shape the future.
Business outcomes, better jobs, and greater environmental protection are all part of the vision for a positive future.
It is how businesses let the world know they are aware of the zero-carbon transition and are committed to embracing it.
Action
Once a leading ambition has been set, the business must deliver on it. It’s a process of innovation and change that, if done correctly, can unlock business transformation for the future economy.
As the economy decarbonizes, it can provide new competitive advantages. In contrast, the risks of inaction and delay will also continue to grow as carbon-intensive business models become increasingly unviable.
As climate change is complex and there are a wide variety of negotiating actors, leadership is crucial to success. It takes leaders to raise the level of ambition, since they can reinforce trust among nations and accelerate action on the part of others.
As a result of the Paris Agreement, a new era of potential climate leaders has begun. By committing all nations to action, the Paris Agreement includes the traditional expectation of developed countries’ leadership.
Since developed countries are not sufficient in providing leadership, emerging countries are expected to take charge of climate change due to their growing capabilities and emissions.
According to ‘InfluenceMap’, there are five key steps toward true corporate climate policy leadership (Image below).
As consumers become increasingly conscious about environmental issues, businesses that address climate change and sustainability gain a competitive advantage. Companies that align with consumers’ values and demonstrate leadership in sustainability are more likely to be supported by millennials and Gen Z.
Advocacy
Changing the way society operates is necessary for most climate solutions. Developing and delivering those solutions is a unique and powerful function of the private sector. In order to accelerate the transition, the government must be on board to clarify the rules for a zero-carbon economy. This requires corporate climate leaders to engage in public discussions and political debates, and to present a clear, confident case for change – in partnership with like-minded allies. The current measures taken to address these challenges remain markedly inadequate, despite the presence of scientific facts and evidence-based policy frameworks. Exactly here is where advocacy plays a crucial role, offering a platform for galvanizing efforts to unravel the complexities of scientific knowledge. It becomes imperative to emphasize innovation and solidarity as the driving forces behind global efforts to combat climate change. In spite of the importance of technical and scientific substantiation, it cannot suffice on its own. By advocating for an equitable and sustainable future for everyone, climate change advocacy transcends ecological concerns, enclosing social equity and human rights within its scope.
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It is becoming increasingly difficult to control wildfires and droughts, as evidence of the climate crisis grows daily. Customers are demanding change, employees are raising concerns, and investors are calling for greater transparency. Moreover, the communities that companies serve and depend on are suffering as a result.
References
- https://www.wemeanbusinesscoalition.org/wp-content/uploads/2020/09/Climate-Leadership-Now-9-20.pdf
- https://fedarene.org/climate-leadership-what-does-it-really-mean/
- https://www.tandfonline.com/doi/full/10.1080/13600826.2023.2173560
- https://www.regenesys.net/reginsights/the-power-of-leadership-in-driving-climate-change-action-and-sustainability
- https://influencemap.org/briefing/Net-Zero-and-the-Need-for-New-Leadership-in-Corporate-Climate-Advocacy-14774