Business leaders must rethink their goals to tackle climate change. Here’s why

Most nations today recognize both the importance and the urgency of the battle against global warming; but there are still significant differences on how best to achieve net zero greenhouse gas emissions and how to share the cost of doing so. In the polarized world we unfortunately live in, this creates a lot of room for conflict – conflict between cultures, geographies and even generations. That, in turn, leads to an erosion of trust which not only slows our progress on fighting climate change but spills over into other social and political issues.

The corporate sector has a vital role to play in tackling climate goals and, ultimately, helping to build trust. Companies are more agile than governments and can marshal greater resources than communities can independently. However, companies must redefine success and shift to shared goals to scale positive long-term change for the planet. This shift – in mindset and approach – can foster the trust and support we’ll need to develop tactics and collaborations to achieve climate goals.

More than 130 nations have promised to reach net zero emissions by 2050 or even earlier. However, few have set out detailed roadmaps on how to get there. Even with all the new commitments made at last November’s COP26 summit in Glasgow, global temperatures will rise by at least 1.8°C above pre-industrial levels by 2050. If we do not implement those promises, then temperatures will rise by 2-3 °C, with potentially disastrous consequences for our planet.

Much change is needed to create sustainable systems and solutions – and quickly. Some priorities set by the IEA and other groups include:

Tackling goals like scaled carbon capture or decarbonizing infrastructure will require focus from private sector to scale proven technologies and mobilize needed capital. It will also require a shift from individual goals to shared goals.

Shared goals cannot be accomplished any one organization alone. They require collaboration and new tactics for working with others to maximize a range of capabilities that no one firm could offer on its own. These tactics include:

For these partnerships and tactics to achieve results, openness and trust is critical. Such trust is a symptom of an acceptance that companies are deeply rooted in society and have a responsibility beyond their own individual balance sheet. I believe companies have this responsibility and must work for the overall happiness and progress of society – and do so consciously and explicitly rather than just blindly pursuing profit.

This is a heavy responsibility and the true meaning of what is often labelled ‘ESG’ or ‘sustainability’. Building this trust will require aligning on what I prefer to call ‘human capitalism’. This approach does not just celebrate the growth of any one country or company. This approach values driving shared, sustainable prosperity across generations. Such a mindset can help us envision new and different forms of success for the future, just on a global scale.

Not only do corporations need to listen to the views of their diverse stakeholders; they also need to understand that they can – and do – influence the behavior of customers, suppliers, employees, investors and the community at large – for better or worse. It is a two-way street.

This not a new idea, just one that has been out of favor in recent decades in certain developed economies. This new kind of thinking and investment will pay out important dividends and not just for nature and the planet. In particular, it can help us meet the needs of the young, whose natural anxiety about the state of the world has led many to become disaffected or simply disconnected. We can create systems that position these new generations for health and a sustainable future.

We should not only think of ourselves and the present moment. After all, humans are mortal but society is immortal. This will require us to think beyond the short-term – beyond data that provides quarterly or yearly snapshots. We will need to measure success with new metrics that protect people and planet for the long-term.

As leaders, we must communicate better. We need to inform all stakeholders about what we have already done, about our plans for the future and how these will affect them. We must not shy away from difficult questions and should accept sensible criticism and adapt. Increased openness will restore trust, allowing faster progress toward our common goals. The result will be a simple, virtuous circle. All participants must play their part as responsible citizens to create a better world.