Reimagining business for net zero emissions
Every business and market is different, which means there’s no one-size-fits-all solution. To deliver on their net zero commitments, businesses need to undertake end-to-end business transformation which includes understanding the implications of net zero for their company’s growth strategy and operating model, and embedding net zero across all business functions from governance, to supply chains, to finance and innovation.
Essential building blocks for net zero transformation
PwC has defined nine key building blocks for corporate net zero transformation. Whether your business is just starting out on its net zero journey, or has a clearly defined road map waiting to be implemented, PwC New Zealand’s Sustainability and Climate Change team can help.
Ambition
Define what 'good practice' ambition looks like, then ensure alignment of business ambition to achieving global net zero by no later than 2050, is underpinned by the science-based targets approach to limit warming to 1.5c of warming.
How PwC can help:
Develop a net zero implementation plan
Set a net zero vision using a science-based approach
Measure total emissions (scope 1, 2 and 3)
- Develop a credible carbon offset approach
Governance
Oversight and accountability for net zero driven through the entire business, including at the highest levels.
How PwC can help:
Board and C-Suite training on net zero
Evaluate net zero incentives structure
Creation of a climate change committee
Strategy
Net zero is embedded into the strategy, to maximize value and build resilience in a changing climate.
How PwC can help:
Understand how net zero is changing market dynamics and value
Assess capabilities required to succeed under net zero future
Identify options to deliver net zero strategy
Develop business case to deliver a net zero strategy
Enterprise transformation
Business is structured to achieve net zero with the operating model designed to deliver net zero targets.
How PwC can help:
Through an organisational review
Establish clear structure of responsibilities and accountabilities to deliver net zero
Harness culture and people
Establish policies, processes and a measurement framework to deliver net zero transformation
Supply chains
Net zero integrated across the whole supply chain to build a well connected, smart, efficient and low carbon supply chain ecosystem. Includes adapting supply chain strategy, aligning with existing transformation efforts, and supporting the supply chain to decarbonise.
How PwC can help:
Assess emissions and climate impacts across whole supply chain
Put an ESG lens on the supply chain - including modern slavery
Supply chain optimisation
Incentivize suppliers to reduce emissions
Build supplier capacity to deliver net zero
Innovation
Business invests in R&D and builds innovation into ways of working to harness emerging technologies and develop new solutions to deliver net zero at pace.
How PwC can help:
Ensure net zero is embedded in corporate R&D and innovation
Innovate to develop products and services that deliver net zero
Finance
Substantial commitment and willingness to finance net zero transformation through existing and new finance functions and modalities.
How PwC can help:
Develop investment strategy
Embed into corporate finance decision making
Identify and prioritise sources of financing
Transparency
Provides transparent and balanced information on progress against net zero ambition, including business transformation.
How PwC can help:
Communicate the net zero strategy
Disclose progress against this net zero strategy with clarity and transparency
Engagement
Engages and influences stakeholders across ecosystems to enable change at pace and scale.
How PwC can help:
Develop engagement strategy
Influence value chain
Related content
Global decarbonisation was only 2.5% in 2020. Achieving the Paris Agreement goal of limiting warming to 1.5°C and delivering net zero requires more than a five times increase in the rate of global decarbonisation every year, and must start now.
The Working Group 2 contribution to the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report (AR6) confirms humans and natural systems are already feeling the effects of climate change and some systems are being pushed beyond their ability to adapt.
The Building Blocks of Corporate Net Zero Transformation
The Building Blocks of Corporate Net Zero Transformation produced by PwC and commissioned by Microsoft – is the first company research contribution to the Transform to Net Zero initiative.
About us
The issues and opportunities of sustainability and climate change have become critical elements that every Board and Executive team needs to factor into strategic planning and long term decision making. We help clients integrate sustainability into their long-term strategic vision. We ensure this vision fosters innovation and employee engagement, improves efficiency and returns, ensures greater risk resilience and high quality decision-making, paving a road to sustainable long-term growth and profitability.
Contact us
