Sustainability in Corporate Practices

What happens when companies break their climate promises? Almost nothing. A new study has uncovered troubling truths about corporate climate commitments. Out of 1,041 companies with emissions reduction targets set for 2020: -9% (88 firms) openly failed to meet their goals. -31% (320 firms) stopped reporting on their targets without explanation. What happens when companies miss these targets? Practically no consequences: -Only three failed companies faced media scrutiny. -No significant market backlash, media sentiment shifts, or ESG rating downgrades. In contrast, companies were rewarded with positive press and improved ESG ratings simply for announcing these targets. The bigger issue: This accountability gap threatens the credibility of ambitious 2030 and 2050 climate pledges. Unlike financial targets, which are rigorously monitored, emissions goals often exist in a vacuum—without oversight or real consequences for failure. Interestingly, the study found that: -Firms in common-law countries and those with stronger media accountability had better success rates. -High-emitting sectors like energy and materials struggled the most, with the highest rates of "disappeared" targets. With more companies backing away from climate action, we cannot afford to let this cycle continue. It’s time for corporate sustainability leadership to move beyond announcements and deliver measurable, transparent results. Accountability mechanisms—demanded by both regulators and stakeholders are urgently needed. A great piece of work by Xiaoyan Jiang, Shawn Kim, and Shirley Simiao Lu! Let’s learn from these insights to ensure that corporate climate pledges actually deliver. #climatechange #netzero #esg

Did you know that up to 90% of a company's environmental impact comes from its supply chain? This statistic highlights businesses' massive responsibility to engage with their entire network of suppliers in the fight against climate change. Across industries, we're seeing a growing emphasis on sustainability within supply chains. Whether it's reducing carbon emissions, ensuring ethical sourcing, or increasing transparency, the need for innovation and collaboration is clearer than ever. And by focusing on these areas, companies can make huge strides in reducing their overall environmental footprint. My partner Jungheinrich AG is a good example of this. Instead of focusing solely on their own sustainability goals, they recently extended their efforts to their entire supply chain to take part in a self-assessment. Businesses doing this can ensure transparency and accountability at every level. It also demonstrates that real change is possible when companies work together. If your company could make one change today to engage its suppliers in sustainability, what would it be? I'd love to hear your thoughts and ideas. #sustainability #supplychain #innovation

Climate Risks Are Financial Risks An alarming USD 1.14 trillion in corporate value, linked to the world's largest stock markets is exposed to severe socio-economic impacts from #climatechange by 2050. Data from the Climate Hazard and Vulnerability Index (CHVI) highlights a critical blind spot for many businesses: 📌 48 countries will be highly vulnerable to socio-economic climate impacts by mid-century, double today’s figure. 📌 Major emerging markets are expected to face significant climate-related disruptions. 📌 India alone accounts for over USD 1 trillion of the at-risk corporate assets, dramatically impacting global markets and supply chains. 🚨Companies must place dedicated climate leadership at the highest level to proactively identify risks, anticipate market disruptions, and strategically invest in long-term resilience. 🚨 Businesses should move beyond physical hazards to systematically report and manage socio-economic climate vulnerabilities. Transparent, detailed disclosures help stakeholders understand risks and encourage informed investments. 🚨 Corporates must prioritize investment in resilient infrastructure, diversified supply chains, and sustainable practices, particularly in vulnerable regions. This strategic foresight protects operational continuity and market valuation. The globalized nature of corporate operations means that climate vulnerability anywhere becomes a financial risk everywhere. 🌱 Is your company equipped with climate leadership at board level? Read more here 👇 https://lnkd.in/eFnsnjyY #ClimateRisk #ClimateLeadership #SustainableGovernance #ESG #BoardGovernance #InvestmentStrategy #Resilience #ClimateAction

The world isn’t ready for what’s coming next in sustainability data. We’re quietly living through the creation of a financial infrastructure for sustainability—and it’s happening faster than most realize. Over 2,000 sustainability regulations have emerged globally in the past decade, with a 155% surge in ESG-related rules since 2018. This isn’t just about compliance—it’s a fundamental shift in how we define value, risk, and performance. What’s driving it? • EU: CSRD & ESRS will impact over 50,000 companies, embedding double materiality. • India: BRSR Core is mandatory for top 1,000 listed firms. • China: CSDS expands carbon reporting in high-impact sectors. • California: SB 253/261 reshape U.S. climate disclosures. • Australia: AASB S2 aligns with IFRS S2, effective in 2025. • Brazil: CVM 193 adopts IFRS-aligned sustainability standards. • And more: Japan, Canada, Singapore, Nigeria, Turkey—all aligning with global standads. We’ve entered a phase where climate, nature, and transition risks are becoming embedded in financial decision-making—from underwriting and M&A to risk pricing and insurance modeling. In the real estate sector, GRESB has made third-party verified performance data (GHG, energy, water, waste) a best practice. ESG metrics are now more embedded in due diligence for loans, equity, and new acquisitions. Yes, today’s data is often backward-looking. And yes, we still need science-based thresholds and stronger assurance. But this foundational work is what allows us to get there. Without reliable, standardized, machine-readable data, we can’t scale action, track progress, or hold anyone accountable. Just as GAAP and IFRS created trust in financial markets, IFRS S1/S2, CSRD, and the GHG Protocol are setting the stage for credible, comparable sustainability data. It will not be a “parallel system.” in the future. We are building the groundwork for full integration into the global financial system. This shift will transform: • How we price risk • How capital is allocated • How resilient companies are rewarded • How we define long-term value creation It’s messy. It’s political. It’s imperfect. But it’s also historic. If you’re in this space, you’re not just reporting data—you’re helping build a new operating system for business and capital markets. One that rewards transparency, resilience, and climate alignment. Let’s keep building—with more rigor, more ambition, and more impact.

𝗧𝗵𝗲 𝗕𝗮𝗻𝗸 𝗼𝗳 𝗘𝗻𝗴𝗹𝗮𝗻𝗱 𝗷𝘂𝘀𝘁 𝗿𝗮𝗶𝘀𝗲𝗱 𝘁𝗵𝗲 𝗯𝗮𝗿 𝗼𝗻 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸 𝘀𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗶𝗼𝗻. They have moved from guidance to governance. From principles to board-level expectations. The PRA's new consultation paper proposed a change in climate risk governance for the UK financial system. These recommendations are long overdue. This is what's being proposed: 🔸 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝘀 𝗯𝗲𝗶𝗻𝗴 𝗲𝗹𝗲𝘃𝗮𝘁𝗲𝗱. Boards and senior management are now 𝙚𝙭𝙥𝙚𝙘𝙩𝙚𝙙 to 𝘰𝘸𝘯 climate risk, embedding it into governance structures, risk appetites, and strategic oversight. 🔸 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 is no longer a one-off compliance exercise. It must now be conducted 𝘳𝘦𝘨𝘶𝘭𝘢𝘳𝘭𝘺, feeding directly into strategic decisions and risk appetites. That includes 𝗿𝗲𝘃𝗲𝗿𝘀𝗲 𝘀𝘁𝗿𝗲𝘀𝘀 𝘁𝗲𝘀𝘁𝗶𝗻𝗴—a powerful tool that forces institutions to confront their most vulnerable assumptions. 🔸 𝗗𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗱𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 𝗮𝗿𝗲 𝘁𝗶𝗴𝗵𝘁𝗲𝗻𝗶𝗻𝗴. Expect more scrutiny of internal datasets, risk models, and how disclosures align with real-world exposures and transition plans. 🔸 𝗣𝗿𝗼𝗽𝗼𝗿𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆 𝗶𝘀 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝗽𝗮𝘀𝘀𝗶𝘃𝗲. The PRA's expectations must now be 𝘵𝘢𝘪𝘭𝘰𝘳𝘦𝘥 to a firm's exposure and complexity. That means more explicit justifications for methodology, sharper risk differentiation, and a more active approach to applying proportionality—not less responsibility, but smarter allocation. 🔸 𝗧𝗵𝗲 𝗣𝗥𝗔 𝗶𝘀 𝗺𝗼𝘃𝗶𝗻𝗴 𝘁𝗼 𝗮𝗹𝗶𝗴𝗻 𝘄𝗶𝘁𝗵 𝗴𝗹𝗼𝗯𝗮𝗹 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀—from the Basel Committee to the IAIS and beyond. This means the bar is rising in the UK and across the global financial system. 𝗠𝘆 𝘁𝗮𝗸𝗲 Recent studies indicate that financial institutions may underestimate climate-related losses by as much as 70%, highlighting the urgency for more robust risk assessment frameworks. By embedding climate considerations into core supervisory frameworks, the BoE acknowledges that climate risk is not a peripheral concern but a central financial stability issue. This proactive approach strengthens the resilience of the UK's economic system and sets a precedent for integrating climate risk into strategic decision-making globally. Please respond to the consultation here: https://lnkd.in/ewQWiCQe _____________ 𝘛𝘰 𝘴𝘦𝘦 𝘮𝘰𝘳𝘦 𝘰𝘧 𝘮𝘺 𝘱𝘰𝘴𝘵𝘴 𝘪𝘯 𝘺𝘰𝘶𝘳 𝘧𝘦𝘦𝘥, 𝘱𝘭𝘦𝘢𝘴𝘦 𝘧𝘦𝘦𝘭 𝘧𝘳𝘦𝘦 𝘵𝘰 𝘭𝘪𝘬𝘦 𝘰𝘳 𝘤𝘰𝘮𝘮𝘦𝘯𝘵 𝘰𝘯 𝘵𝘩𝘪𝘴 𝘱𝘰𝘴𝘵. 𝘓𝘪𝘯𝘬𝘦𝘥𝘐𝘯 𝘱𝘶𝘴𝘩𝘦𝘴 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘺𝘰𝘶 𝘪𝘯𝘵𝘦𝘳𝘢𝘤𝘵 𝘸𝘪𝘵𝘩. 𝘍𝘰𝘭𝘭𝘰𝘸 𝘮𝘦 𝘰𝘯 𝘓𝘪𝘯𝘬𝘦𝘥𝘐𝘯: Scott Kelly

Sustainability Transformation Journey 🌎 Sustainability transformation requires a strategic and systematic approach. Deloitte's transformation journey, while designed for insurers, provides a strong roadmap applicable across industries. It outlines critical steps to align business operations with sustainability objectives. The process begins with baseline assessments to evaluate emissions, risks, and material sustainability issues. Establishing a clear inventory of impacts and dependencies sets the foundation for data-driven decision-making. Risk assessment follows, identifying physical and transition risks. Understanding exposure to climate-related risks is essential for integrating sustainability into long-term business strategy and resilience planning. Strategic interventions bridge the gap between current performance and sustainability goals. This phase includes defining action plans, setting measurable targets, and aligning initiatives with evolving regulatory expectations. Financing mechanisms play a crucial role. Leveraging carbon markets, grants, incentives, and green bonds ensures that sustainability efforts are not just commitments but are backed by tangible financial resources. Governance structures must be established to maintain oversight and accountability. Integrating sustainability into decision-making frameworks ensures alignment with corporate objectives and compliance with emerging disclosure requirements. Performance measurement and continuous improvement are critical. Robust reporting frameworks such as TCFD, CSRD, and ISSB guide transparency, while monitoring mechanisms drive ongoing progress. Successful sustainability transformation is not just about compliance but about embedding sustainability into business strategy. A well-structured approach ensures resilience, long-term value creation, and alignment with global sustainability trends. Source: Deloitte #sustainability #sustainable #business #esg #climatechange

Sustainable agriculture: #Gender #responsive farm equipments. Growing up in an area where maize (corn) is grown on both large and small scale, tractors and other heavy farm equipments are used in the maize value chain. I've never seen a single woman driving a tractor cultivating land or any other farm work, because mostly these farm equipments are designed with a tall, heavy and strong male body in mind. Women already face many barriers in agriculture, access to and use of farm equipments and technology is on the top. Women play an important role in the sustenance of agricultural system and they have to be involved in the process of new technologies that are eco-sustenance. Designing farm equipments and other technologies that are gender responsive while considering the specific needs, preferences of women in the agricultural sector is paramount. This potato planting farm equipment👇 is quite gender responsive, it's ideal for small scale farmers especially women, easy to use, It's fast and can save on time and does not require a lot of energy to keep it running. What to be done: ✓Involve men and women in design process. ✓User centred design approach focusing on end user's needs and experiences. ✓Design products that can be easily adapted to different tasks and farm sizes. ✓Design affordable products that cater to the financial capacities for small scale farmers. ✓Prioritize safety features in product design considering the different physique of men and women. Follow Regina Wangare, let's keep practical sustainable programme/project initiatives conversations going. 💪❤️

When in Doubt, Just Delete It? Corporate Climate Silence is Getting Louder 🌍🚨 According to a recent Financial Times investigation by Attracta Mooney and Susannah Savage, major U.S. corporations are quietly erasing climate commitments from public view. The report reveals that companies like Walmart, KraftHeinz, Meta, Ford Motor Company, and American Airlines have scrubbed or softened references to climate change from their websites. In some cases, bold pledges—like cutting emissions by 50% by 2030—have disappeared entirely. This isn’t happening in a vacuum. With political attacks on environmental policies intensifying, many companies are opting for "greenhushing"—downplaying or omitting sustainability efforts to avoid controversy. But of course, this makes perfect sense. After all, the election of Donald Trump has fundamentally altered the science of climate change and carbon emissions, right? Surely, CO₂ molecules now behave differently depending on who occupies the White House. 🤔🌱💨 (Okay, sarcasm over.) Here’s the real issue: erasing climate commitments doesn’t erase climate risks. 🔹 Investors are watching. The push for transparency in ESG reporting isn’t just about optics—it’s about long-term financial stability. Weakening climate targets today could mean increased regulatory scrutiny, shareholder activism, or even capital flight tomorrow. 🔹 Customers care. Greenwashing is bad. But greenhushing? It sends the message that a company’s commitment to sustainability is only as strong as the political winds allow. That’s a fast way to lose trust. 🔹 Employees are paying attention. Younger talent, in particular, prioritises sustainability. A quiet retreat on climate commitments could hurt not just a company’s brand, but also its ability to attract and retain top talent. Beyond the immediate reputational risks, this entire approach is staggeringly shortsighted. Climate change isn’t a PR issue—it’s a physical reality that will disrupt supply chains, displace populations, and drive economic instability. Pretending otherwise doesn’t change the science, it only delays the inevitable reckoning. And at its core, this is deeply disappointing. Corporate leadership isn’t just retreating from climate action; it’s demonstrating a complete moral failure. If a company’s sustainability strategy evaporates the moment political pressure rises, was it ever real in the first place? 🌎💔 What do you think? Are we entering an era where businesses retreat on sustainability—not just in words, but in actions too? 🔗 Full article here: https://lnkd.in/egngPgqw #ClimateRisk #ESG #CorporateResponsibility #Greenhushing #Sustainability

Let's face it: we have made corporate climate action more complicated than it needs to be. Yes, there are important, nuanced and deeply technical questions around accounting, inventories, targets, and what should count as responsible climate action. But our collective obsession with hammering out every tiny detail, and protecting the system against every conceivable misuse, has led to guidance for corporates that is extremely difficult to understand, risky to implement, and which provides no real business case to as to why companies should take meaningful action. That's why the recently announced "Reduce & Invest" framework (link in the comments) is such a wonderful idea. It demystifies corporate climate action for CEOs and other top decision makers, and focuses on ACTION today, both in and outside of the value chain. 1) It acknowledges right up front that there is no "instruction manual" for corporate climate action. This is key. Many companies are waiting on the sidelines for SBTi or others to tell them exactly what to do. And frankly, they - and we - don't have time to wait. It replaces that instruction manual with a key set of principles that are easy to understand. 2) And what are those principles? Are they published in a 145 page draft guidance? Do they require a team of auditors to work alongside a team of sustainability professionals to decipher? Do you need a 13 page glossary of terms by your desk to decode them? NO! They are contained fully in three freakin' words: "Reduce & Invest." If you tell a CEO those three words and let them know this is about CO2 emissions, they will immediately understand the imperative. REDUCE your emissions as fast as possible. AND - (NOT OR) - INVEST in high-integrity carbon markets beyond your business. 3) If you're a decision maker and are looking for the next level of detail, the framework gives you that in its call to "Balance your Carbon Books." Again, note this is language that every corporate executive will immediately understand. If you have unabated emissions, you need to balance those emissions with investment. Simple. 4) Most importantly, this framework actually makes a compelling (but mercifully short!) business case for why CEOs should act, that is not all about the "feels." Put simply, if a company can demonstrate to stakeholders that is is REDUCING its emissions AND holding itself accountable by INVESTING to balance its carbon books, its stakeholders will reward it by investing their time, talent and treasure in the company. What does this mean? Lower cost capital. Easier recruitment and retention of talent. These are things CEOs worry about on a daily basis. Now, this framework doesn't eliminate the need for more detailed and technical guidance from SBTi and others. But it does demystify corporate action and provide top decision makers with a platform to make (and justify) the right decision. It is a massive step in the right direction.

I'm happy to share the release of the #WiSER White Paper, "Igniting a Global Sustainable Economy," following the impactful discussions at the WiSER Annual Forum during Abu Dhabi Sustainability Week - ADSW 2025. This report highlights the critical role of female entrepreneurs in driving climate solutions and provides actionable strategies to bridge gender gaps in finance, scalability, AI, mentorship, and accessibility—especially for women in the Global South. Why This Matters: Women-led ventures are key to unlocking innovation in sustainability, yet systemic barriers persist. This paper outlines 5 recommendations: 🔹 Increase Gender-Focused Investment : Boost funding, financial literacy, and microloans for female-led climate projects. 🔹 Scale Women-Led Ventures : Streamline policies and partnerships to accelerate growth. 🔹 Harness AI & Digital Tools: Bridge the AI literacy and access gap to empower business expansion. 🔹 Strengthen Mentorship and Networking: Build cross-sector collaborations to provide women with the resources to succeed. 🔹 Empower Women in the Global South : Address legal and financial barriers, invest in STEM education, and improve access to markets and resources. Dive into the full report below or on Masdar (Abu Dhabi Future Energy Company)’s website for insights on turning these strategies into action: https://lnkd.in/dyAFPEP2 Thanks again to my fellow roundtable participants: Lawratou Bah, CFA, Mirella Amalia Vitale, Natasha Shenoy, Hajar Alketbi, Manal B., Mariam Alnaqbi, Shaima Al Mulla