As businesses focus on the New Year ahead, many will see the most immediate challenge as mitigating the corrosive impact of a resurgent COVID-19.
Yet it is still only two months since Glasgow hosted COP26, when minds were unilaterally focused on climate change.
COP26 shone several spotlights on the huge efforts required to keep the rise in global temperatures down to 1.5C. One of the biggest is the need for all businesses to commit to the ‘Race to Zero’, and find more sustainable ways of working that will help us meet our collective net zero ambition.
Beyond just doing the right thing, organisations which develop their credentials as a responsible business give themselves the opportunity to positively engage their customers, shareholders and employees. Equally, more sustainable businesses have been shown to stimulate innovation and drive growth,
‘Race to Zero’ is not one which results in an overall winner. For us to succeed, everybody needs to reach the finish line at the same time, regarding of size and reach.
In particular, it is vital that SMEs are fully engaged. In a recent Scottish Government survey, published before the pandemic, there were 354,125 SMEs operating in Scotland, providing an estimated 1.2 million jobs. They accounted for 99.3% of all private sector businesses, 55.4% of private sector employment and 41.5% of private sector turnover.
These figures reveal how SMEs are the vibrant ecosystem that provide the backbone of goods and services across Scotland – and indeed the UK and rest of the world. It is critically important, therefore, that they play a full role in developing more sustainable methods of working.
But a sizeable number are struggling to do so. A survey by the British Chambers of Commerce in 2020, entitled Business Attitudes to Net Zero, found two-thirds don’t see net zero targets as a high priority post-pandemic despite almost half admitting their customers do.
This is where big business can step in. Take, for example, CGI. We have chosen to lead by example through our own responsible business strategy, receiving validation for science-based targets (SBTs) that commit us to achieving net zero greenhouse gas (GHG) emissions by 2026. This goal will include both GHG emissions under our direct and indirect control.
Part of our commitment to SBTs is a scope 3 (supply chain) engagement target, specifically to ensure 50% of our suppliers by spend will have set their own science-based targets by the end of 2026. Our supply chain will not only include those already engaged with planning their path to net zero but also SMEs who have yet to start this journey.
In addition to this corporate level commitment, we want to share our expertise to help others, meaning our clients and partners – which include a large proportion of SMEs. At CGI we are growing our sustainability advisory practice, working with our clients across the private and public sector to help them better understand the role of sustainability within their organisation and support them to navigate a path to net zero.
But we want to reach out further and engage with others, using our experience, size and scale to provide a transparent approach to meeting the priorities of SMEs so they can embrace change, and recognise the real need to set net zero targets of their own.
To make this accessible and affordable we have developed a flexible service model, supporting organisations take those first steps in becoming a more responsible business. This gives SMEs the advice and confidence to get started, develop a relevant sustainability strategy for their business and then continue to engage them through their journey.
By finding a common language to drive collaboration, we can ensure that our net zero journeys align by embracing together the technology, co-creation and proactive engagement necessary to find a solution to the problems small and medium-sized companies face in prioritising climate change.
In 2022, getting started with sustainability should be a priority for SMEs that have not yet taken those first steps. In the first instance, it is important to establish a baseline and understanding of your organisation’s operational carbon and societal impact. It’s then about developing a compelling strategy, understood by your organisation and relevant to your customers and stakeholders. Finally, it is about developing an actionable roadmap with KPIs and ambitious but achievable objectives, in time aligning these to SBTs.
At CGI we are well versed in doing complex things well, so stand ready to help organisations take these first steps. For us, the process of guiding our clients through the complexity of a suitable response to net zero is a very natural development.
With our sustainability advisory practice we can provide the expertise and experience our clients need to help create clear sustainability strategies and drive the sustainability initiatives that align with their organisational visions, values, people and processes.
If you are interested in discussing how you can be supported on your net zero journey, feel free to contact me via our website at www.cgi.com/uk/en-gb/experts/howard-gray.
