How to accelerate corporate transition capability
The participants of the 2nd Climate Leadership Roundtable discussing how to accelerate organisational transition capability
On 14 March, we hosted our 2nd Climate Leadership Roundtable together with 12 Heads of Sustainability from some of Sweden’s largest organisations and Professor Åsa Löfgren and Sverker Jagers. The topic of the discussion was ‘Accelerating Transition Capability’ with a focus on identifying blockers and enablers in relation to organisations’ green climate transition. The participating organisations were Coop, Lindex, Microsoft, Vattenfall, Löfbergs, Danone, Apotea, Swedbank, If, Volvo Trucks, PostNord, and TietoEvry.
“It was highly encouraging to see all participants equally motivated to accelerate the green transition and collaborate to make it happen. With the most recent IPCC report further underpinning the urgency, bold climate leadership demonstrated by these people is needed — now more than ever. The discussion covered many critical areas currently holding us back, with the potential of becoming true enablers if resolved”, says Staffan Ekholm, CEO at Another Tomorrow.
The discussion was framed around TransitionView, a transition capability model developed by Another Tomorrow together with Åsa Löfgren and Sverker Jagers, using Willingness, Readiness and Openness as key components of any organisation’s transition capability.
The key components of transition capability within TransitionView (note: the numbers are not real and therefore not representative of any organisation)
In relation to the transition capability model, most of the comments centred around the theme of Willingness; the need for clear and visionary leadership, awareness & mindsets, commitments and increased collaboration. This is both natural and critical. Without an organisational willingness to transition, the extent to which we organise our resources won’t matter.
The main discussion topics centred around the key transition components Willingness, Readiness and Openness
Visionary leadership
“It's the visionary leadership brain, not the analytical, that can create that mental picture of where a company will be in five, ten and fifteen years”
A key finding was that the purposes of business and climate initiatives often clash and that such conflicting goals can only be resolved by clear visions and direction. Bold thinkers and leaders inside organisations need to be acknowledged and appreciated. As the climate transition requires new business models and services, the investments need to be larger than the fiscal budgets provided today.
Awareness and mindset
“We cannot compromise our private values within our company roles”
We seem to underestimate the systemic, societal scale of change required and many within the “current generation of leaders” seem to be stuck in the wrong mindset within their professional roles. Again, acknowledging and appreciating the bold thinkers and leaders inside organisations can help to challenge traditional ways of thinking together with promoting new role models and influences amongst existing leaders. Companies “playing offence” can lead the way and inspire others through their future-fit visions. Another idea that was brought up was to add new perspectives through establishing shadow boards with representatives from a younger generation.
Collaboration
“My challenge is not so much our suppliers. It's more about how we convince our downstream customers, make sure they understand the need, take the opportunity and work together in different ways. To do this globally in a systematic and rapid way is a major challenge for us”
The roundtable participants agreed that the sheer complexity of the climate transition calls for collaboration across industry and within value chains, both upstream and downstream. With this comes the need to allocate more time and resources to collaboration. Also, industry competition - as opposed to collaboration - within sustainability affects everyone negatively.
Commitments
“Who are the most influential actors? Put them around the same table”
Commitment, both within an organisation, within an industry and across a value chain is critical. For instance, executive management needs to fully commit to transition goals and direction. On an industry level, jointly committed investments in breakthrough technology (such as the First Movers Coalition within hard-to-abate industries) create momentum and impact. These joint commitments and collective action amongst influential market players lowers potential risks significantly. An example is the Seafood Business for Ocean Stewardship that rallies a handful of CEOs representing 80-90% of global fisheries.
Final word
Another Tomorrow feels both honoured and inspired to have been part of this discussion, learning from climate leaders pushing frontiers on a daily basis. We’re looking forward to the next event where we would like to dive even deeper into some of these topics. If you’re interested in learning more about our Climate Leadership Roundtable or the transition capability model, reach out to Lisa!
