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Reliable Net Zero Plans Are Important to Secure Future Business Investment

Former Bank of England Governor Mark Carney urged businesses to establish a credible net-zero strategy, which would struggle to secure future investment from banks and investors and future profitability Warned that there is a risk of keeping consumers away.

In today’s speech to commemorate the launch of the Leonardo Business for Society Center at Imperial College Business School, lenders come from companies that do not show a “trustworthy intent” for investors and banks to move to more companies. It warns you that you are getting more and more distant. Sustainable business practices.

“Investors, banks, and in fact society will increasingly distinguish between companies that meet and do not meet this gold standard,” Kearney said at the event. “That means helping companies with credible plans with the money they need to put them into action, and selling companies that don’t show a credible intent to move.”

Kearney effectively refers to business leaders and emphasizes that “not all migration plans are created in the same way.” As a result, companies need to develop science-based climate programs and take responsibility for both operational and electricity-related emissions. Supply chain emissions “when appropriate”. He adds that the Net Zero plan also includes provisional emission targets and should be integrated into the board-level governance process.

Kearney will warn that not planning a company’s net zero is not an option for companies looking to the long-term future.

“Given that, in my view, Net Zero is an integral part of climate physics and is on the road to becoming the law of land in more than 120 countries, business strategies plan to support the transition to Net Zero. Must be based on, “he says. “And to attract the money needed to transform our business model, companies need to set net-zero goals and plan how to adapt their business model to a low-emission world. “

Kearney also emphasizes that companies need to adopt a stakeholder-oriented business model that involves employees, suppliers, customers, communities, and their shareholders as they tackle global challenges.

“There are companies that solve the problems of people and the planet,” he says. “A purposeful company defines and enshrines this mission. It creates a strategy to achieve that purpose. It is based on promoting that purpose, from employment to R & D expenses. Make company decisions and adjust incentives for that purpose. “

Former Governor of the Bank of England also said that the priority of the COP26 Climate Summit in Glasgow is to build a financial system that takes climate risk into account. It will be built on the basis of three. ” Rs for risk management, reporting, and returns.

“Across all these pillars, we need to build expertise and experience, test effectiveness, and collectively improve our skills,” says Kearney. “It takes a short time to prevent a full-scale climate crisis, so we need to share knowledge and coordinate.”

Based on the Imperial Business School campus in central London, the Leonardo Center focuses on five areas related to sustainable business. Corporate objectives and governance, leadership and culture, business model innovation, corporate and functional strategies, management and incentive systems.

Kearney’s complaint comes in the same week as President Alok Sharma of COP26 Similarly prompted business leaders Emphasizing a strong transition plan to establish a net-zero strategy would be “good for their bottom line.” In addition, the 1st anniversary of the confirmation by more than 4,500 non-state actors from the entire world economy as a UN-supported competition campaign for zero, which brings together government, public and private sector organizations that announced the Net Zero plan. Celebrated. Signed the initiative by promising to halve emissions by 2030 to achieve net zero emissions by 2050, including many of the world’s largest companies and investors.

https://www.businessgreen.com/news/4032913/mark-carney-credible-net-zero-plans-crucial-securing-future-business-investment Reliable Net Zero Plans Are Important to Secure Future Business Investment

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