| Sourced From Thehindubusinessline |
The global economic slowdown has led to a new debate in governments and the private sector, with many arguing that the transition to a low carbon economy is too expensive or of less importance now. However, during the recovery from recession, our economic models must evolve to overcome unprecedented turmoil in global markets and simultaneously make provisions for climate-friendly sustainable growth.
Leaders around the world are absorbing the scale and scope of the economic, environmental and social challenges and recognising the need for bold and swift action to address climate change issues at a strategic level.
A CEO’s vision is a vital component to make a paradigm shift in management’s thinking on how to achieve a meaningful transformation to low carbon economy. The vision of leadership takes various dimensions.
An in-depth understanding of opportunities’ and threats’ posed by climate change: A CEO must take a long-term view of the potential physical impacts of climate change on business sustainability. He must visualise the evolution of market and industry under low carbon drivers and how these will influence growth, open up new market opportunities, stimulate technology innovations, reshape consumer preference and alter competitive landscape.
As climate change assumes strategic importance in boardroom discussions leadership should indeed re-think on the fundamental assumptions and challenge the basic paradigm in which business should operate in a carbon constrained future.
Develop strategic choice: An intense ideation among top level functionaries at various levels is required to develop portfolio of options (technology, process and product choice, markets) that will navigate transition to low carbon path. Collaborate and co-create solutions with stakeholders: The sheer scale of challenge and opportunities presented by climate change demands new form of alliances. Businesses working standalone can only hope to make incremental contributions to this challenge. This calls for the combined energy and skill of organisations and governments working together in a grand alliance.
Collaboration can reduce the burden of individual risk and help leaders make an early move with confidence and agility. Finally, leaders should recognise that collaboration creates leverage