2021 - time to shift from planning to doing net zero
2019 was the year of realisation about the urgency for action on climate change and ecological degradation. 2020 was one of crisis, but it also highlighted great ingenuity and the ability to accelerate change as well as seeing the crystallisation of many emergency measures, future commitments and plans for achieving net zero, disclosing climate risks.
These declarations and future commitments of governments, companies and communities are essential - but achieve nothing without the action to follow them through. It may not have felt like it during 2020 (and I am no Latin scholar) but Tempus Fugit rings true here, time does fly. 2021 is not part of the drawing board for the future, it is now and let’s not gloss over how it moves us another year through our critical decade for decarbonisation.
If not already in this mindset, it is time to roll up our sleeves and to shift into doing mode, including doing many things faster and doing many things differently. The conditions for this are compelling and also unique, partly as a consequence of the Covid-19 pandemic. Few would argue with the logic of building back greener, creating much needed jobs in a forward-facing green economy in the process. The growth of digital technologies and green investment also continue to build momentum and provide powerful enablers - but we need to harness them more effectively to accelerate commercially viable solutions.
However, driving decarbonisation on a path to net zero within a generation, recovering our natural capital and improving climate resilience are complex, and some aspects will be very hard. We are certainly going to need to dig deep and continually challenge ourselves and others.
If 2021 is to be a year of action and doing things differently then here are some of the characteristics that I think could matter most:
in relation to existing project portfolios - scrutinising them critically and be prepared to pivot. Let’s face it, the last thing anyone needs is more things to undo in a few years time.
in relation to innovation - accelerating the adoption of the many forms of technology for good, and new business models, whilst putting equal effort into working through the opportunities for people and securing a just transition.
in relation to new investments and projects - being open to a diversity of ideas and the people presenting them and then breaking the mould of existing processes where necessary to trial, deploy and generate impact faster than ever. This will also involve taking calculated risks and helping to redefine the way that decisions are made to take better account of externalities and the risk of inaction.
in relation to collaboration: creating new alliances that cut across traditional boundaries and embracing co-investment and other novel ways of funding and financing a change in approach.
If you are wondering where to start then a great new year’s resolution is to make sure that your pension is working for the planet as well as generating good returns. This is relevant to the vast majority people and organisations and taking action in this area is said to be 17 times more powerful than other typical direct steps that individuals can take. Check out Make My Money Matter for more information or hear from its co-founder Richard Curtis in this podcast with the Green Finance Institute.
Chris Fry, January 2021
