McKinsey is sometimes a very good light in a dark room regarding sustainability strategies. I really agree with the headlines ”Full throttle on net zero: Creating value in the face of uncertainty” in this article.
It is not a new idea that a crisis can also be seen as an opportunity. New needs creates new niches for new business models and forecasting future business has always been associated with uncertainty, ie regarding sustainability.
Using the backcasting methodology, also mentioned FSSD, will however minimizing the uncertainty to a question of timing rather than if a green transition will be profitable. We are inevitably going towards a society with bigger needs for correcting the ongoing systematic misstakes, eg as long as elements from the lithosphere are allowed to systematically increase within the biosphere.
I will therefore add an extra motivation to take the recommendations seriously and use backcasting instead of forecasting when it comes sustainability and business opportunities and risks.
And were do Limebook come into this? McKinsey refer to six strategies within the article:
- push ahead on value creation with vision and ambition
- integrate cost and carbon reductions
- create customer partnerships to be an early winner in the market
- update the portfolio to secure profitable growth
- build and scale new green businesses
- execute at digital speed to create competitive distance
Limebook…
..is actually based on creating the KPIs from the FSSD-methodology. A selection of tools as third party progressive sustainability certification schemes and circular economy decisions that is combined with purchasing activities is a smart way of integrating carbon reductions with costs.
The aim to reduce the carbon costs should encourage the shift from linear to circular business models. 70% of the GHG-emissions are due to extraction of virgin elements and working with a vision that is based on using the piles of waste, refurbing second hand products etc rather than mining for virgin resources, will be very profitable and decreasing dependence on volatile prices of virgin commodities.
”Executing on this agenda has required the company to build leading capabilities in tracking and verifying the carbon content of the materials and components it procures, finding new suppliers, and utilizing carbon as a new element in product design. By investing in these areas, the company now has industry-leading capabilities in enabling Scope 3 emissions reductions. (Scope 3 emissions are indirect emissions that arise across a company’s value chain.)”
The above quotation from the article refers to scope 3, which is the most crucial part in sustainable business transformation. By using Limebook you have a relevant control of the scope 3 by measuring continous improvement in purchasing. This will be a driving force for vision and value creation.
The idea of partnerships in circular economy has been adressed many times earlier but also in this article. In order to fulfill your vision it is easier when finding green win-wins and longterm relationships together with suppliers and clients. Sharing the Limebook KPIs will probably inspire your suppliers to develop and perform even better because the suppliers understand what is expected and what should be developed.
The McKinsey article refers to some historical events demonstrating monetary success for enablers. It is all about disruption and never stand still by renewing your portfolio and scale your green business. The most important stakeholders in these matters are the investors. Show them your trends in Limebook, if they disruptive or not.
Limebook is based on the very same digital format that is used in accounting and complies very well to the digital speed development, even when AI takes over.
Finally, what is measured will be done. It is not about compliance with a variety of sustainability standards and regulations that is the primary driver. It is rather the progress due to visions and strategic thinking that is verifiable by highly rated standards and transactions, that is making the difference. Do you get it?
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