As external pressure to contribute to global decarbonization efforts pushes the C–Suite to prioritize sustainability, organizations in nearly every industry are realizing that they must decarbonize their operations—or risk getting left behind. To succeed in the current market, organizations need an enterprise-wide sustainability program with a comprehensive data acquisition and aggregation strategy built in, allowing the company to mature and adapt to changing rules and regulations and the goals of their external stakeholders, including customers, investors, the supply chain and the global community.
But while the impetus for investing in sustainability is clear, a recent survey of 100 executives across EHS, ESG, and operations roles in the construction materials sector uncovered a growing need for help building a business case and obtaining funding (69% of the leaders surveyed) and translating strategy into action (64%), among other challenges.
The survey, which was commissioned by Trinity Consultants, was conducted by independent research firm Verdantix.
As companies embrace a broader concept of sustainability as a strategy for business resilience and long-term success, they are seeing that in many cases, they can’t do it alone. Just as companies are looking to supply chain partners to reduce
Scope 3 emissions, they’re turning to outside consultants with industry-specific expertise to truly embed sustainability into the core of their strategies.
Here’s why you should consider working with a consulting partner to develop the business case for decarbonization initiatives in 2024.
Companies are looking to decarbonization as a competitive differentiator
As firms’ decarbonization strategies mature, the core drivers behind these strategies evolve. Organizations are now seeking to leverage climate and decarbonization performance as a competitive differentiator.
Incorporating decarbonization into business strategy strengthens brand reputation and sets firms aside from their competitors in a crowded marketplace. The Verdantix report found that 55% of businesses view brand reputation/competitive advantage as either the most significant or a very significant driver of decarbonization efforts. The decarbonization strategies of larger organizations—those with more than $5 billion in revenue—are more likely to be driven by competitive advantage than those of their smaller counterparts. In many cases, that’s because larger firms are further along in their sustainability maturity than smaller firms.
A consulting partner can not only help organizations set a strategy designed to deliver a competitive edge but also add transparency to the process and legitimacy to the company’s sustainability disclosures.
Firms are struggling to translate decarbonization strategies into action
Decarbonization initiatives are becoming increasingly intertwined with wider business strategy, but many organizations fail to get them out of the boardroom. Poor internal organization, combined with a lack of technical expertise at all levels of the company, compounds this challenge, and this can lead to fragmented implementation efforts and stalled strategies. The most successful decarbonization methods are the ones that are seamlessly woven into an organization’s overall business strategy.
Building a business case to maintain funding is a challenge
Firms are finding it hard to build a business case to get funding for decarbonization efforts. Much of the funding for net zero strategies comes from the chief sustainability officer’s budget, although funding is spread across members of the C-Suite, particularly the COO in emissions-intensive industries, the Verdantix research found. In the construction materials sector, for example, the high upfront cost of enterprise-wide decarbonization initiatives, coupled with volatile raw material prices and transportation costs, can be a significant barrier to firms in implementing and executing decarbonization programs. In addition, the operational efficiencies of decarbonization projects may take time to materialize, which can create uncertainty for decision-makers who are looking for a quicker return on investment.
Firms can leverage outside resources, such as an environmental consulting partner with experience both within and outside their industry, to benchmark performance against peers, provide insights on industry best practices and help perform a top-down analysis of cost-effective and technically feasible decarbonization solutions with appropriate timelines. For example, a steel manufacturer that uses a lot of natural gas as fuel could learn from a consultant’s insights into what the natural gas sector is doing to decarbonize.
Leaders value deep technical expertise, industry-specific offerings when selecting a consulting partner
To translate strategy into action and move the needle on sustainability, companies are looking for a services partner that understands the challenges unique to a given industry and the context in which a company operates. The
Verdantix survey found that 62% of firms strongly value a service partner with deep technical expertise, able to guide them from inception through to execution, while 54% of organizations strongly agree that they value a service provider with comprehensive environmental management services specific to their industry.
From strategy to solution: Looking to more sustainable future
Companies now recognize that decarbonization isn’t just a corporate responsibility; it’s also a powerful competitive differentiator. However, as
the recent survey commissioned by Trinity Consultants reveals, building a business case and obtaining funding for decarbonization initiatives—and then ensuring that strategies are integrated into day-to-day operations—pose a considerable challenge across industries. One thing is clear: The pursuit of net zero is a journey best undertaken with experienced partners by your side. The future belongs to those who not only envision sustainability as a strategic advantage but also have the wisdom to seek expertise beyond their organization’s walls.
