The imperative to implement a Transition Plan and respond to the challenges of Climate Change is intensifying.
EU policymakers are finalising new rules and standards that will require companies to design and disclose credible transition plans aligned with limiting global warming to 1.5 degrees Celsius.
But whilst there is increasing pressure for businesses to plan for the future, the opportunity lies in using a Transition Plan to future-proof and build revenues through a smart and sustainable approach.
A Transition Plan, provides a pathway to Circularity and shall become the core of a company’s ability to adapt and prosper under a new climate reality.
The ability to transition requires finance. The ability to access green finance is integral to meeting and overcoming the challenges of climate change and moving toward a fully circular operating model.
The Problem
We need to do more than just switch to renewable energy, we also need to reduce the amount of waste we create.
Companies Lack the Experience with Transition Planning to Net Zero.
A Transition Plan addresses decarbonisation and electrification. Circularity is all about dematerialisation.
One way to do this is to make less stuff and use it for longer.
Right now, we produce a lot of stuff that we don't need. And a lot of that stuff ends up in landfills.
We need to change the way we make and use things. We need to make things that last.
We also need to find ways to reuse and recycle things. This will help us to make less waste.
ESG reporting is not enough. We need to build a transition plan and act now.
ESG reports are a snapshot of a company's sustainability performance at a point in time. They are important, but they are not enough. We need to go beyond reporting and take action to reduce our environmental impact.
A transition plan is a roadmap for how a company will achieve its sustainability goals. It should be specific, measurable, achievable, relevant, and time-bound. We need to act now to address the climate crisis. We cannot wait any longer. We need to build transition plans and start taking action. And increasingly governments across the world and financial institutions are requiring these too.
Here are some of the challenges we face:
We need to change the way we think about making and using things.
We need to develop new technologies to help us to reuse and recycle things.
We need to make sure that the transition is fair and everyone benefits.
But the challenges are not insurmountable. We can do this. We must do this.
What's stopping you from making that switch?
Symptoms of the problem
All things products is what companies understand
Companies prioritize the acquisition of new products and resources rather than adopting more sustainable practices of reusing or recycling existing materials and products.
Consuming energy across operations and transport is getting riskier
The increasing reliance on traditional energy sources and transportation methods poses environmental and economic risks due to factors like resource scarcity and climate change.
Megafactories and global supply chains are becoming more fragile
Large-scale manufacturing facilities and complex global supply chains are increasingly vulnerable to disruptions, such as natural disasters, geopolitical tensions, or pandemics, which can disrupt the flow of goods and materials together with overconsumption and excessive waste.
Productivity is getting harder and jobs are disappearing
Traditional economic models and industries may face challenges in maintaining productivity and job stability in the face of changing consumer preferences, automation, and the need for more sustainable practices.
Insufficient capital
Estimated cumulative capital spending on physical assets for the net-zero transition—such as technology, infrastructure, and natural resources — would need to change from today’s annual average of $5.7 trillion to $9.2 trillion through 2050*. *MckInsey.
The Solution
Transition strategies play a pivotal role in driving the change
A climate transition strategy is a plan for how an organization can reduce its greenhouse gas emissions and become more sustainable. It should be specific, measurable, achievable, relevant, and time-bound.
Building a sustainable and circular economy are at the core of the circulist's mission.
Join the Circularity Revolution Today
We offer Programs for product manufacturing leaders who want to make their companies more sustainable & circular, while positioning themselves for accessing green finance. Together with your peers, you will learn from expert practitioners, learn what not to do, hear stories and share ideas on how to reshape the way your company operates.
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