Sustainable Business - Q4 2020

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Q4 / 2020

SUSTAINABLE BUSINESS

Full campaign on businessandindustry.co.uk

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“Businesses must unite behind the science and take rapid and ambitious action.”

“Net zero commitments have doubled in 2020 during the global pandemic.”

“The UK needs to transform to a green, sustainable economy fast.”

Sanda Ojiambo CEO, UN Global Compact Page 2

Anthony Hobley Executive Director, Mission Possible Program World Economic Forum Page 4

James Diggle Head of Energy & Climate Change, Confederation of British Industry Page 8

Sustainability – the new business as usual >> turn to page 11

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Futureproofing business by being more sustainable COVID-19 has exposed businesses’ lack of resilience to unexpected shocks. This must become the trigger for sustainable change.

C Sanda Ojiambo CEO, UN Global Compact

Commitment to the Sustainable Development Goals Before the pandemic, more than 11,000 businesses alive to this threat had already committed to the United Nations Global Compact’s Ten Principles and the 17 Sustainable Development Goals (SDGs).

This meant commitments to renewable energy or committing to greater gender equality within their organisations. But we are not moving at the speed or scale required to achieve our SDG targets by the 2030 deadline.

Building resilience makes a business more sustainable. And being a sustainable business makes it more resilient.

The impact of the pandemic on sustainability COVID-19 is undoing much of the progress we have achieved since these global goals were adopted in 2015. We still have 700 million people in extreme poverty; we are on track for a 3.5oC temperature rise by 2100 rather than 1.5oC; at our current pace it will take 257 more years to close the economic gender gap; and 8 million metric tons of plastic still enter our oceans every year.1 Businesses already committed to greater sustainability recognise that they cannot thrive in a world of poverty, inequality, unrest, and environmental stress. But many more businesses must raise their collective ambitions and join them. If not just for the sake of the planet, then increasingly because sustainability also makes sound business sense.

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OVID-19 has forced many companies to reassess the way they do business. Most are studying how to prepare for the next global shock. This could be another pandemic, or a devastating natural disaster. Building resilience makes a business more sustainable.

And being a sustainable business makes it more resilient.

The business case of sustainability According to research carried out for the United Nations Global Compact, businesses with a higher environmental, social and governance (ESG) performance saw cumulative relative returns 6.3% higher than the bottom performers during the first four months of this year.2 Evidence also shows that businesses taking a sustainable long-term view are better at addressing short-term challenges too.

While recent research shows many CEOs understand this – 76%3 believe sustainability and trust will be critical to competitiveness in their industry in the next five years – only 48% are implementing sustainability in their operations. Just 21% say business is playing a critical role in achieving the SDGs. This gap between rhetoric and reality needs to close fast.

Pressure from policy makers, investors, customers and employees is growing for greater and more meaningful corporate sustainability action. The expectation is for business to become more ambitious, adopt more sustainable practices and play a leading role in building a better future for people and the planet.

Change needs to come from the top In order to succeed we need a transformational approach. Businesses

2-4 February 2021 | Global | Virtual

must unite behind the science and take rapid and ambitious action across their entire operations and value chains. This change must start at the top, with sustainability embedded into the leadership culture so flows down through the organisation.

At present, just 4% of appointments have this requirement.3 We need businesses to integrate sustainability targets not just to their own operations, but to their entire value chain. These should include cutting down on water and power use, recycling wherever possible, sourcing from sustainable suppliers, promoting gender equality at work, addressing inequality within their value and supply chains and through their products and services and working towards becoming carbon neutral.

Business must then measure, manage and report on their progress.

Companies demonstrating bold leadership on the Sustainable Development Goals will not only become more resilient. They will be securing their own long-term future while helping to protect life and prosperity across the globe.

References 1. https://www.unglobalcompact.org/library/5745, p6 2. https://www.unglobalcompact.org/library/5746, p3 3. https://www.unglobalcompact.org/library/5745, p5

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Why packaging can never be a one-size-fits-all solution

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here’s an increasing awareness among the public that excessive packaging is harming the environment.

David Attenborough’s award-winning documentary, Blue Planet II, made it clear that between 4 and 12 million metric tons of plastic finds its way into our oceans each year, threatening marine life and polluting our food.

Not forgetting, because nearly all plastic is made from fossil fuels, its production comes from a nonrenewable material.

So, it stands to reason that the most environmentally friendly solution to this devastating problem is to simply ban all packaging. Right?

Wrong, says Gladys Naylor, Group Head of Sustainable Development at international packaging and paper group, Mondi.

products can ensure the product lasts up to 26 days longer.

There’s a trade-off to make here, which is why Naylor believes that it’s important to use paper where possible, plastic when useful — and to be sustainable by design.

A holistic view of the packaging process Taking a holistic view of the process is essential. “It’s not enough to think about the material your packaging is made from,” she cautions. “You have to think about the whole lifecycle.”

“For instance, how are you sourcing your raw materials? Are they renewable? What role will the packaging play? How can you make it function as efficiently as possible?

What’s going to be its end-of-life?”

Packaging is never one-size-fits-all: what’s right for different applications and markets will differ and must be carefully considered.

It’s why good collaboration between different parts of the value chain is so critical, from the manufacturers and packaging companies to the end consumers and waste handlers.

A close working relationship allows honest conversations to take place around, for example, design specifications.

“If one of our customers wants packaging that allows its pet food to survive on the shelf for many years, we may end up designing something for them that uses more resources and complex materials, so we need to ask more questions to ensure we make the most appropriate and sustainable packaging solution,” says Naylor.

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Packaging plays an important role in protecting products — but its end-of-life impacts can also harm the environment.

Thankfully, companies are increasingly looking for more sustainable solutions and using a life cycle approach.

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It’s important to use paper where possible, plastic when useful — and to be sustainable by design.

The role of packaging “Packaging plays a critical role in our world,” she says. “There are a number of challenges we have to get to grips with, including its end-of-life; but it’s not as simple as saying ‘do away with all packaging’.”

After all, packaging makes supply chains more efficient and extends the shelf life of the products it protects.

Nor is it a simple choice to just say ‘no’ to plastic completely and only use paper-based alternatives. Naylor cites a topical example: “Take the packaging surrounding test kits for coronavirus. It plays a hugely important role in keeping the kits sterile and protected and allows them to function without being compromised.”

33% of the world’s food is lost or wasted every year. Packaging used by the food industry can prevent contamination or spoilage and mitigates waste, which is also critical in the fight against climate change. For example, packaging for certain meat

Better awareness from businesses Mondi partners with NGOs, universities and multi-stakeholder organisations, and and is a member of Cepi’s 4evergreen Alliance working on topics like designing fibre-based products for a circular economy. The Group is also a member of CEFLEX (a circular economy initiative for flexible plastic packaging) which similarly has a working group focused on sustainable end markets.

“These types of engagements allow everyone to work together to effect change in the economy at a larger scale,” explains Naylor.

There is still work to do, she admits, because you can push your trolley around the supermarket and be exasperated by egregious examples of non-sustainable packaging, or overpackaging.

Yet many consumer-facing businesses in particular are looking for more sustainable packaging choices to meet rising consumer demands.

“On the other hand, we do have customers who are just starting on this journey and have a less mature understanding of sustainability issues and trade-offs,” says Naylor.

“It’s our job to pro-actively work with them to help move them in the right direction.”

INTERVIEW WITH

Gladys Naylor Group Head of Sustainable Development, Mondi WRITTEN BY

Tony Greenway

Paid for by Mondi

Read more at mondigroup.com

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We can’t wait to act on emissions.

Here’s how to get to net zero To avoid irreversible damage to our societies, economies and the natural world, we must hold temperature rise to 1.5°C above pre-industrial levels.

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lobal warming is likely to reach 1.5°C between 2030 and 2052 if it continues at the current rate, according to a 2018 report by the Intergovernmental Panel on Climate Change (IPCC).

WRITTEN BY

Anthony Hobley Executive Director, Mission Possible, World Economic Forum

cement, shipping and even aviation in line with net zero pathways.

Rebuilding after COVID-19 The COVID-19 pandemic has caused the largest emissions drop since World War II, but it remains to be seen how the global recovery will shape the emissions trajectory.

Companies can do four main things to make a difference:

Partnering for progress Several multi stakeholder efforts seek to address this crisis by involving the private sector in the solution.

The United Nations Global Compact launched the ‘Business Ambition for 1.5°C’ campaign to call on companies to commit to ambitious emissions reduction science-based targets. As of 3 November 2020, 314 companies have signed the commitment.

The Mission Possible Platform is a collaboration between the World Economic Forum and the Energy Transitions. The platform is working with over 300 companies from the so called “harder-to-abate” industrial sectors to operationalise the decarbonised sectors such as steel,

1. They must demonstrate transparency in reporting emissions publicly.

2. They should show leadership by committing to reducing their emissions.

3. They must act on these commitments and report progress.

4. They should join relevant initiatives and alliances.

Industry leading on climate action There is hope: net zero commitments have doubled in 2020 during the

There is hope: net zero commitments have doubled in 2020 during the global pandemic.

global pandemic, according to research by NewClimate and Data Driven EnviroLab. For example, more energy companies are committing to end their contribution to greenhouse gas emissions – including household names like BP, Shell, Enel, Iberdrola and EDF. Microsoft aims to be climatenegative for all three scopes by 2030.

It aims to remove all the carbon the company has emitted either directly or indirectly by electrical consumption since it was founded in 1975 and launched a $1 billion fund for CO2 removal.

Net-zero decarbonisation and investing in nature based solutions are tantamount to each other. The performance of nature moves the goal posts for climate targets, they are intrinsically linked.

A race to zero emissions means a race to zero deaths caused by air pollution, climate change and environmental destruction. We can’t afford to wait.

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Why data centres are keen to be green Data centres have a reputation for using lots of energy and generating huge amounts of heat. But many want to be as green as possible — not least because their customers demand it.

Do you shop online, use Netflix, Microsoft Teams and social media? You wouldn’t be able to without data centres. They’re a crucial part of the digital economy.

©EvgeniyShkolenko

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et’s be honest: people don’t give much thought to the importance of data centres — if they think about them at all. Although, actually, that might be changing. Did you work from home during lockdown?

Data centres helped you do that. Do you shop online, use Netflix, Microsoft Teams and social media? You wouldn’t be able to without data centres. They’re a crucial part of the digital economy.

The fact is that any ‘smart’ technology relays data, be it an energy meter, mobile phone or TV. Processing it requires a massive amount of computing capability — and that lives in a data centre.

“People say: ‘All my data is in the cloud’,” notes David Watkins, Solutions Director at VIRTUS, a company which owns, designs, builds and operates data centres. “But not many people ask: ‘Where is that?’ Well, if you want to see what the cloud looks like, come to one of our data centres.”

It’s true that, because of the job they do, data centres use a huge amount of power and generate a vast amount of heat. Yet more of them now have sustainability at the top of their agendas.

“We’re keen to be as sustainable and as efficient as possible,” says Watkins.

“And now our customers are demanding

it. The key thing they used to ask is: ‘Are you reliable and secure?’ Now they want to know we’re sustainable, too.”

It’s more affordable for data centres to be green For example, the energy VIRTUS buys is certified from fully renewable sources.

It uses efficient cooling systems, installs charging points for electric vehicles and typically locates close to public transport locations.

Plus, the buildings themselves have sustainability accreditation from BREEAM (Building Research Establishment Environmental Assessment Method). “A BREEAM audit looks at the whole lifecycle of a building,” says Watkins. “It asks where your building materials have been acquired and what energy saving features you have. Also, how are people getting to your site? It goes down to that granular level.”

Thanks to tax breaks, incentives and diminishing costs for renewable energy, it’s more affordable — and even costeffective — for data centres to be a green and sustainable option for businesses.

“A lot more data can be processed in an energy efficient way within a large computer base than on smaller servers in a company’s own building,” he says.

INTERVIEW WITH

David Watkins Solutions Director, VIRTUS Data Centres

Written by: Tony Greenway

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From A to Zero: how to achieve net zero With an ever-narrowing window for action to limit global warming to 1.5 degrees, more and more companies are committing to achieving net zero status.

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INTERVIEW WITH

Stuart Lemmon CEO, EcoAct UK

Written by: Meredith Jones Russell

Paid for by EcoAct

et zero means adding no incremental greenhouse gases to the atmosphere.

For companies to achieve it, they must carry out significant decarbonisation, and sequester any emissions they cannot reduce.

Stuart Lemmon, CEO of EcoAct UK, an Atos company, says, “We’ve effectively only got 10 years to save the planet. Rather than just gradually reduce emissions, we need an end point we all agree on, and that is net zero.”

“The simplicity of that goal has really catalysed action. Net zero is something that companies intuitively understand and can easily communicate.”

Implementing net zero strategies According to EcoAct’s annual research into corporate climate disclosures, despite a significant increase in corporate commitments to net zero, few are matched by robust strategies or take the whole value chain into account.

“A strategy is actually relatively

simple,” Lemmon says. “The difficulty is understanding what the implications will be.”

“Net zero requires significant and transformational change. It involves looking in detail at the carbon footprint of all operations and the value chain, identifying hotspots, evaluating options for reduction, and engaging with employees, customers and suppliers.

“It can seem huge and scary, but by approaching it in bitesize chunks, a roadmap begins to unfold.”

Measure, reduce, offset Companies seeking to achieve net zero should focus on a three-part process, Lemmon added.

“Make a detailed measurement, reduce emissions as much as possible, then offset the residual to achieve a net zero position.”

Offsetting will inevitably be involved in any journey to net zero.

“It’s difficult for businesses to get to zero and do so quickly. A lot of net zero strategies will therefore include

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The fight for capital post-COVID-19 is likely to be focused on sustainability, so companies that are doing it well and have good plans in place will benefit. an element of carbon offsetting, and for net zero that will need to be carbon sequestration.”

Impact of the pandemic In the current climate, companies are under pressure to make savings wherever possible. However, sustainability targets look likely to be prioritised even in these straitened times.

“During the 2008 financial crisis, sustainability was seen as discretionary spending and was one of the first things to be cut,” Lemmon recalls.

“In contrast, many businesses that have been severely impacted this year have kept their sustainability team even when they have furloughed others. It is much more of a priority now for businesses, their customers, and, significantly, for investors too.

“The fight for capital postCOVID-19 is likely to be focused on sustainability, so companies that are doing it well and have good plans in place will benefit.”

Read more at eco-act.com

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Helping businesses invest in circular economy Urgent global issues pose huge challenges to companies. To tackle them requires a transformation of business models, and even entire production and consumption systems.

WRITTEN BY

Michiel De Smet Finance Programme Lead, Ellen MacArthur Foundation

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nvesting in circular economy models offers businesses the opportunity to address global challenges like climate change and biodiversity loss, by designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.

Through circular business models, new revenue streams can also be generated, for example by valorising by-products, reducing costs through remanufacturing, and creating new markets, such as online resale platforms for luxury goods. While the task at hand may be significant, the rewards could be just as great.

to tackle plastic pollution at its source – reducing their virgin plastics use by setting targets on elimination of problematic and unnecessary packaging and increasing use of recycled content.

Making the commitment to a circular economy Many leading organisations are already making bold commitments and taking action to create a circular economy. As the issue of plastic pollution has risen on the global agenda, with policymakers putting bans and mandatory targets in place and citizens demanding solutions, businesses have responded.

Global brands such as Danone, Nestlé, and Unilever are taking action

Supporting the transition to a circular economy To achieve the transition to a circular economy successfully, these companies and others like them will need both capital and guidance. Not only has the financial services sector a vital role to play here, this industrial transformation also offers a massive opportunity for them.

Supporting industrial transformation both helps the financial sector deliver on its climate and other Environmental,

Many leading organisations are already making bold commitments and taking action to create a circular economy.

Social & Governance (ESG) goals while providing them with a source of new and better growth.

Growth in the financing sector The circular economy financing market is taking off, with steep growth in activity across asset classes over the last two years. Notable examples include the launch of 10 public equity funds focussed on circular economy, including from large institutions such as Blackrock, Credit Suisse and Goldman Sachs. Also, the issuance of several corporate bonds to finance circular economy activity, including efforts helping meet the companies’ 2025 targets on plastics.

While growth in financing is promising, the opportunities the circular economy holds for the sector remain largely untapped, and far more capital and activity will be needed to fully seize them. Now is the time for finance to build on this initial momentum by helping companies accelerate their transition to a circular economy.

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Sustainable finance can help us build back better The unexpected and profound impact of COVID-19 on all of our lives is the overarching narrative of 2020, now we need to focus on how we recover in 2021.

WRITTEN BY

James Alexander Chief Executive, UK Sustainable Investment and Finance Association

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he global pandemic has affected so much of our lives.

However, with thoughtful policy interventions, flows of finance and an approved vaccine, the recovery of our communities, our businesses and our society can be the story of 2021. How this is financed, must become a success story for the UK’s growing sustainable investment and finance sector.

Changing public mood There is a growing recognition amongst investors, consumers and policy makers that our investments must serve a wider societal purpose whilst building wealth.

Research commissioned by UKSIF - the UK Sustainable Investment and Finance Association - for 2020’s Good Money Week captured the public mood for a better future built on the things we value.

When questioned on how the recovery should be enacted, 69% of British people want the UK to prioritise lowering emissions, ensuring the COVID-19 recovery

contributes to the Paris Agreement’s goal of halving emissions by 2030.

They also want net zero to be reached by 2050 at the latest.

Investors are leading the charge Big investors committed to supporting sustainable companies and projects are an essential contributor to a green and fair COVID-19 recovery.

Major investors have warned they will use their voting power against companies with insufficient board and management diversity. The UN’s Race to Zero is rallying support from investors and companies to build momentum on decarbonisation of the economy.

The Government has announced that the duty of investors to disclose investment risks related to climate change will soon become mandatory.

Furthermore, responding to investor demand, a government green bond will shortly be issued, raising capital to finance the green recovery.

More action is needed, and the pace must accelerate, however the foundations exist for the finance

Major investors have warned they will use their voting power against companies with insufficient board and management diversity. sector to have a very positive impact on the COVID-19 recovery.

Clean slate, green slate ‘Build back better’ has become a mantra for the creation of a green and fair future as we consider our destiny for the years after COVID-19. The UK must continue to follow the public mood, the science and the economics.

Taking inspiration from Good Money Week’s ‘Clean Slate, Green Slate’ call to action, a green recovery propelled by sustainable finance will generate millions of jobs and build an economy fit for the future. It will help avert catastrophic climate change, and further enhance the UK’s position as a global leader in sustainable finance and investment.

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Time to accelerate the sustainability agenda As sustainability is high on the global agenda, businesses need to show, more than ever, their commitment to tackling climate change.

H Guillaume Chesneau Managing Director, Nespresso UK & ROI

Paid for by Nespresso

Less talk, more action Businesses must face up to their sustainability challenges and they must do this now. Pressure on the sustainability efforts of multinational companies has been growing for some years but, while there are many good examples of work taking place to tackle environmental issues, there has been too much focus on rhetoric. Now is the time for action.

Consumers demand it, too. An IPSOS study earlier this year found that 71% of the public globally agree that climate change is as serious in the long-term as the global pandemic.

If we don’t continue to improve our impact on the planet, our business won’t have longevity. It is not only good business sense, but an ethical approach that today consumers expect from all corporations.

Our responsibility on this front is something we’re acutely aware of. Take public perceptions around portioned coffee, for example - while Nespresso established a dedicated recycling scheme in the UK 10 years ago, we understand that more must be done to make our business more circular. Other coffee pod brands share this objective, which is why we are coming together to start a new UK-wide recycling scheme for our products, and tackle this challenge as an industry.

Research has shown that 90% of UK consumers want to recycle coffee pods through their household recycling.

Podback will enable them to do that for the first time - but we need other brands, retailers and local authorities to join us and ensure the scheme has maximum impact.

Over the next decade, corporations need to stay ahead of the curve, maintain relevance, and work together to drive meaningful, positive change.

The new Podback recycling scheme will enable UK consumers to recycle their capsules in several easy ways, including kerbside collection for the first time. Exeter City Council, Cheltenham Borough Council and South Derbyshire District Council are in advanced discussions with Podback to become the first confirmed local authority partners.

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ow long do we have to save the planet? In 2018, the United Nations Intergovernmental Panel on Climate Change (IPCC) warned that we must keep the rise in global temperatures below 1.5oC, which would require a 45% reduction in carbon emissions by 2030. At our current emissions rates, we will reach 1.5oC in just over seven years.

It is not hyperbolic to express that we are reaching a crossroads and bold steps are urgently needed to win this race against time.

Paying lip-service to sustainability is not enough.

Becoming carbon neutral by 2022 Looking ahead, our goal is that customers will be able to drink a carbon neutral cup of coffee by the end of 2022. It is an ambition that we are confident of reaching. Our plan is clear, and threefold.

Firstly, a crucial action is to further decarbonise our value chain. In practice, this means driving towards 100% renewable energy in all of our global boutiques. Additionally, we are increasing the use of recycled plastic within our machines, as well as using more recycled and low carbon virgin aluminium in our coffee capsules.

Following the launch of 80% recycled aluminium capsules earlier this year, our aim is for all coffee ranges to be made using recycled aluminium by the end of 2021.

Secondly, we are investing in insetting initiatives globally – planting trees in coffee farms and the surrounding landscapes that will capture carbon from the atmosphere.

These processes also provide crucial shade that helps crops to grow, and roots that protect against soil erosion and landslides, while promoting soil regeneration.

Thirdly, we are also investing in

Looking ahead, our goal is that customers will be able to drink a carbon neutral cup of coffee by the end of 2022.

Gold Standard offsetting initiatives that support forest conservation and restoration, as well as implementing clean energy solutions within farming communities globally.

Getting on track to net zero All of the above actions have not been taken lightly, and have already required significant investment, time and passion from across the business and our partners.

I’m proud that we’re taking these steps to push not only our own green agenda, but to hopefully encourage others in the industry and beyond to follow suit and accelerate their sustainability programmes.

We know well that the public won’t accept half-measures - businesses must be fully committed to achieving a sustainable future.

Read more at sustainability. nespresso.com

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Combining COVID-19 recovery with a greener economy Recovery plans from the coronavirus pandemic offer a chance to move more quickly towards a green and sustainable economy. We now need to look at how to achieve it.

James Diggle Head of Energy & Climate Change Policy, Confederation of British Industry

Written by: Linda Whitney

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he UK needs to transform to a green, sustainable economy fast. “The postCOVID-19 recovery plans are an opportunity to accelerate that,” says James Diggle, Head of Energy & Climate Change at the CBI. “Enabling green investment to make rapid progress towards net-zero emissions – but at the same time delivering sustainable jobs - must be central to the Government’s recovery plans,” he says.

Prioritising public spending and policy on low-carbon programmes that deliver short-term economic and social benefits will lay the foundations for a resilient, net-zero economy.

The CBI has put together a number of proposals to achieve this: Creating a low-carbon power system Low-carbon electricity is achievable by 2030. It should come from a mix of low-carbon nuclear and renewables such as solar and on- and offshore windfarms. The Prime Minister’s new ‘Ten Point Plan for a Green Industrial Revolution’ is an important step, but more progress is needed, particularly in nuclear.

With the help of the private sector, the Government must deliver on existing fiscal policy to leverage investment and cut emissions. For instance, by building on the success of the Contract for Difference auctioning programme in delivering low-cost renewable power generation.

“These auctions will drive down the cost of renewables, and we must remove limits on the amount of lowcost power that these can deliver.” says Diggle.

Let’s make packaging for a sustainable world.

PA P E R | PA C K A G I N G | S O L U T I O N S

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INTERVIEW WITH

Transport The Government has just set a 2030 as the date when no new petrol and diesel cars can be sold. Electric cars now account for 5% of new car sales, up from 1% a year ago, but stronger incentives are needed to accelerate this progress. Government and local authorities must work together to boost the charging infrastructure, including on-street charging, as 40% of people do not have access to easy charging at home.

Energy efficient homes The Government’s Green Homes Grant helps, but more incentives are required to boost retrofitting with energy efficiency measures, and technology such as heat pumps and in the future, hydrogen boilers in some areas.

Decarbonising aviation The aviation industry needs government help to develop new lowcarbon fuels, which the UK could help pioneer.

Investment in new technologies The Government must continue its commitment to technologies such as

Low-carbon electricity is achievable by 2030. It should come from a mix of lowcarbon nuclear and renewables such as solar and on- and offshore windfarms. carbon capture and hydrogen.

“Delivering the £1 billion now promised for carbon capture will significantly boost regional growth in areas of the country where these sectors are based,” says Diggle. “This will bring employment opportunities and ensure long-term certainty to sectors which as a result of COVID-19 are facing severe economic challenges.”

Smarter regulation, clear policies Diggle says: “All of these policies will deliver more jobs as well as a more sustainable and greener economy, but clearer regulation and policies are needed to ensure this.” The CBI backs the overall UK Government net-zero ambition by 2050.

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FINANCING A

SUSTAINABLE

FUTURE LUXEMBOURG’S FINANCIAL EXPERTISE WILL HELP SHAPE THE WORLD OF TOMORROW.

Financial services are essential to stimulate economic activity. They are part of the solution to help our economies recover from the Covid-19 crisis in order to generate growth and create jobs. Expertise clustered in financial centers like Luxembourg is key in achieving this goal. Luxembourg’s unique cross-border expertise helps you raise capital from global investors and allocate these investments to firms and projects in Europe and around the world. Our stability and resilience offer you a perfect base to grow your business. Our openness to innovation helps you look beyond today. Our longstanding commitment to sustainable finance connects you with the needs of tomorrow’s economy.

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Prioritising public spending and policy on low-carbon programmes that deliver short-term economic and social benefits will lay the foundations for a resilient, net-zero economy. ~ James Diggle, Head of Energy & Climate Change Policy, Confederation of British Industry

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How to be a green business in 2020 Companies want to do their part before COP26. But we also know that the question of ‘how’ can be overwhelming.

Providing principles to help achieve net zero The UK Government has made a legal commitment to transition to net zero carbon emissions by 2050. In 2018/19, businesses were responsible for around 18% of the UK’s carbon emissions.

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esponsible businesses must be at the heart of the transformation to a resilient, zero carbon future. As we move towards COP26 in Glasgow, we need all companies to realise that tackling the climate crisis needs to be part of their business strategy. The Government is looking to businesses for help in developing robust, ambitious policy as the country recovers from COVID-19.

All this responsibility can be overwhelming, but there are really just three things to think about before COP26: Create a climate action plan - and share it The Chancellor’s announcement that Taskforce for Climate related Financial Disclosure (TCFD) reporting will become mandatory for London Stock Exchange ‘premium’ companies is a big step. But we need more. The Government needs reassurance that ambitious action is welcome. If businesses are open about the climate action plans, our policymakers won’t be working in the dark.

Doing what you can within your own business is a great first step but tackling the climate crisis needs everyone.

Set an ambitious net zero carbon target The Government’s 2050 deadline only gives us a 50:50 chance of achieving net zero carbon. Businesses really need to be thinking about 2030, even though that can seem scary. The important thing is to be open about the journey, especially when it is hard. Make a public commitment through schemes like Race to Zero and share your progress.

Don’t go it alone Doing what you can within your own business is a great first step but tackling the climate crisis needs everyone. There are many challenges that need to be met with - from getting infrastructure in the right places to changing behaviours and transforming how we measure and reward success. Be part of the debate.

WRITTEN BY

Gudrun Cartwright Climate Action Director, Business in the Community

N WRITTEN BY

Mike Cherry Chair, Federation of Small Businesses

ow, with the UK chairing COP26 in 2021, all eyes are on UK businesses and industries to play a key role.

Business owners want to go green; they don’t want to be left behind. To ensure this, government needs to introduce environmental policies in a way that views businesses as part of the solution, not the problem. Measured, proportionate and timely policy interventions will give businesses a fair chance to adapt and thrive in a low carbon economy.

Implementing The Fairness Principles to help achieve net zero The Fairness Principles were created to emphasise the need for a just transition to net zero that is fair and empowering for businesses, no matter their size.

We are calling for government to take a principles-led approach when developing net zero aligned policy, based around several tests of fairness: 1. Fairness of Ambition: Climate change policies must be aligned to the latest scientific evidence and demonstrate ambition that matches the reality of the challenge, both in its timescales and extent.

2. Fairness of Accountability: Government, alongside regulators, should provide coherent and accountable governance and ensure that climate change policies are coordinated.

3. Fairness of Delivery: Government should, where possible, support, empower and incentivise businesses to find their own ways to net zero, acknowledging that a one-size-fitsall approach to policy delivery may not work in all cases.

4. Fairness of Opportunity: Government must provide a level playing field, ensuring businesses of all sizes, in all sectors, throughout the UK, can contribute to a net zero economy through their innovations, investments, and markets.

5. Fairness of Cost: Climate change policies must be affordable and achievable. Government must ensure that the costs of transition to net zero are distributed equitably among businesses, workers, and consumers, based on their environmental impact, ability to pay, ability to adapt and potential for gain.

These tests provide a robust framework for policy development, allowing the UK to maintain its current domestic and global ambitions while being accountable, credible and fair. They empower businesses to be part of the solution. They provide an opportunity for government and business to form a powerful partnership for good, working together to deliver viable, long-term measures to encourage sustainability, protect society and grow a resilient economy.

FSB and the UK’s major business groups – the CBI, Make UK, British Chambers of Commerce and Institute of Directors – created the Fairness Principles as a means to help achieve Net Zero by 2050.

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Apprentices: Hope Reynolds and Jovita Beeston

Sustainability is the new business as usual

As businesses across the country get to work on achieving the green recovery needed to support the UK’s economic and environmental future, it’s vital that companies ensure their overall business strategy and their commitment to sustainability are completely aligned.

T

WRITTEN BY

Sheila Duncan UK HR Director, ScottishPower

Paid for by ScottishPower

o put it simply, in order to achieve green recovery, companies are not just talking about being a sustainable business, but actually practising what they preach and making sustainability part of the business-as-usual approach.

As a company, we are committed to ensuring we can all enjoy a cleaner, greener and better future, quicker and tackling the climate emergency in a number of ways. We are producing only clean renewable energy, actively working to reduce our own carbon emissions, and supporting the growth of green jobs.

ScottishPower Renewables’ first-ever offshore wind apprentices.

The two mechatronics maintenance apprentice technicians are now hard at work on their three-year apprenticeship programme, which will see them working 30 miles off the Suffolk coast on the recently completed East Anglia ONE windfarm.

During the programme, Jovita and Hope will receive on the job learning and unique work experience opportunities, which will bring classroom studies, such as programming and mechanical assembly, to life.

People will help us achieve net zero It will be people who will help us win the race to net zero, and more and more green jobs will be needed to achieve the country’s ambitious climate change targets. That means people transitioning from more traditional industries into renewables and new jobs being created as more green projects – like windfarms and electric vehicle infrastructure – get off the ground.

These jobs won’t only support businesses to be more sustainable – they will also offer a sustainable and long-term career for those getting in the door now.

Two young women who know all about that are 18-year-old Jovita Beeston from Norwich and 17-yearold Hope Reynolds from Lowestoft who were recently appointed as

Playing your part in securing a green future Jovita was inspired to join after studying engineering at college as well as gaining practical work experience in the offshore wind sector. She says: “I not only really enjoyed the experience of working in the offshore industry – I was also really fascinated about the impact of renewable energy and how it was growing as a key sector for the country. It’s so big now and I want to see how it develops and play my part in creating a green future.”

Hope was excited about the opportunities the industry offers for a long-term career and the chance to do something different. She says: “Having seen how much other people enjoy working in the industry and the real variety it offers in terms of job roles and career progression, I knew this was

It will be people who will help us win the race to net zero, and more and more green jobs will be needed to achieve the country’s ambitious climate change targets. for me. It’s really exciting to get started and know that what we’ll be doing will be helping create a brighter and better future for everyone.”

People like Jovita and Hope are at the very heart of achieving net zero, making more green energy available and supporting all sorts of businesses to become more sustainable.

People see what’s going on with climate change. They want to be part of the move to net zero. They want to be associated with a company that is taking this seriously. ScottishPower is certainly taking it seriously, with significant investment and jobs planned over the next five years.

These jobs and investment will not only make the green recovery a reality - they will help deliver a cleaner and greener future, move us closer to climate change targets, and help make sustainability business as usual for companies across the country.

ScottishPower is the first integrated company in the UK to generate 100% green electricity and one of the Principal Partners for the COP26 UN Climate Change Conference.

ScottishPower will deliver almost £10 billion record investment in clean energy between 20202025 to help unlock net zero, which will support around 10,000 jobs across the UK. scottishpower.com

A promotional supplement distributed on behalf of Mediaplanet, which takes sole responsibility for its contents | MEDIAPLANET

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The sustainable truth in the cardboard box Packaging giants are increasing their commitment to showing how sustainability will benefit customers, investors and the environment.

INTERVIEW WITH

Steven Stoffer Vice President, Sustainable Development at Smurfit Kappa Written by: Linda Whitney

Paid for by Smurfit Kappa

O

nline shopping increases demand for paper-based packaging – but isn’t that bad for trees?

“No,” says Steven Stoffer, Vice President, Sustainable Development at Smurfit Kappa, which aims to be the world’s most sustainable paperbased packing producer. “Sustainable management of forests is an essential requirement for the paper based packaging industry. Our industry in Europe plants more trees than we harvest.”

How can cardboard be sustainable?

Smurfit Kappa has an end-to-end approach to sustainability. We align our economic goals to environmental and social responsibility throughout.

Our business model is completely circular and the best illustration of that is that we are the only company of our size in our industry that delivers practically all its packaging solutions as FSC Chain of Custody certified to its customers worldwide. This means our customers can trust that the fibres

used in our products are traceable to sustainable sources,” says Stoffer.

“This benefits our customers because they too can demonstrate that their packaging is sustainable which contributes to important issues like deforestation, biodiversity and climate change. This is increasingly attractive to consumers and makes us a smart and sustainable investment.”

customers to decrease their carbon footprint through our packaging.

At Smurfit Kappa we have a sustainable and natural packaging product, we have the practices and processes to support sustainable business that benefits our customers, communities and environments. We are sustainable at both ends and that’s what makes us different.”

Passing on sustainability to customers The company is committed to reducing its CO2 intensity by 55% by 2030 compared to its base year 2005, and to achieve at least net zero carbon emissions by 2050. “We know that we can reach our 2030 target and with further innovation, we should be able to reach net zero,” says Stoffer.

“We are investing in energy efficient energy generation, re-engineering our processes and implementing smart energy solutions so as to reduce fossil fuel use. Between 40-50% of our total energy need is already coming from renewable sources such as biomass.

We are also collaborating with

Advice for businesses increasing sustainability He adds: “We are committed to decreasing the carbon footprints of our customers through our fitfor-purpose packaging.” He advises businesses: “Focus on both how your product can best support the net zero goal through its role in the value chain and how you can reduce the carbon and other environmental footprint of your own organisation. Engage your own people, collaborate with partners and innovate. And of course, focus on the quick wins first.”

Let’s make packaging for a sustainable world.

Consumers are choosing companies that are helping to make packaging waste extinct.

We are already helping thousands of companies open the future by adapting their packaging.

We’ve also worked with over 60,000 supply chains, allowing us to gain a huge amount of knowledge, so we understand the complexities involved. In fact, sometimes the biggest challenge is just getting started. Join the evolution, talk to us today.

PA P E R | PA C K A G I N G | S O L U T I O N S

This benefits our customers because they too can demonstrate that their packaging is sustainable which contributes to important issues like deforestation, biodiversity and climate change.

Join us to create Better Planet Packaging.

Visit smurfitkappa.com

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