The Imperial College Business School in South Kensington is home to the new Leonardo Centre on Business for Society. Former Bank of England Governor Mark Carney has urged businesses to establish credible net-zero strategies, warning that firms that fail to do so could struggle to secure future investment from banks and investors and risk alienating the consumers that will ensure their future profitability. In prepared remarks for a speech last week to mark the launch of Imperial College Business School's Leonardo Centre for Business for Society, the financier warned that investors and banks are set to increasingly distance themselves from companies that do not demonstrate a "credible intention" to transition towards more sustainable business practices. "Investors, banks and indeed society will increasingly differentiate between companies that meet this gold standard and those that do not," Carney said in his prepared remarks. "That means backing companies with credible plans with the necessary finance to turn plans into action; and divesting those who don't demonstrate credible intention to transition." Addressing business leaders virtually, Carney stressed that "not all transition plans" are created equal and as such stressed the need for companies to develop climate plans rooted in science and take responsibility for both operational and power-related emissions, as well as supply chain emissions "where appropriate." Net-zero plans also should include interim emissions targets and be integrated into board-level governance processes, he added. Not having a corporate net-zero plan is not an option for companies eyeing a long-term future, Carney warned in his comments. "In my view, given that net zero is both an imperative of climate physics and on the road to becoming the law of the land in over 120 countries, any business strategy must be grounded in a plan to support the transition to net zero," Carney added in his prepared... |