WATCH | Climate resilience: Preparing your business for a sustainable future
A talk by Mark Boshoff | Mark Head of Climate Resilience and Sustainability Strategy at Nedbank Commercial Banking
Watch as Nedbank Commercial Banking's Head of Climate Resilience and Sustainability Strategy Mark Boshoff takes us through what climate resilience means and why you should prepare your business for a sustainable future.
Climate change continues to be at the top of the agenda for both developing and developed nations. It brings with it unprecedented challenges. This uncertainty has brought about the need for governments and businesses alike to create climate-resilient societies and markets.
In this episode of Nedbank’s expert talk series Ahead of the Curve, we’re joined by Mark Boshoff, Head of Climate Resilience and Sustainability Strategy at Nedbank Commercial Banking, to look at how businesses can make the right choice that will not only ensure that their business models are climate resilient, but also contribute to the fight to save the planet.
“In a nutshell, we are faced with a very stark choice: prepare now or pay later. But it’s something that we all have to do and make a decision because no decision is also a decision."
Resilience is broadly defined as the ability to bounce back. Boshoff characterises climate resilience and sustainability as something everyone in a business is responsible for; from level one employees right up to the CEO. He says to create climate-resilient strategies businesses need to think of the acronym MAT: Mitigate, Adapt and Transform.
“You can mitigate by first cleaning up your own act by reducing your carbon footprint, reducing your emissions, and trying to get it going on that basis. It also looks at what happens when that event strikes you: Do you have adequate insurance? Are your supply chains in a position so that you can reorganise them?” he asks.
As with any major global shift, climate change not only poses risks to the planet but also risks to your business operations. Boshoff identifies the following four risks:
- Financial loss: Your company can be sued for being a polluter;
- Infrastructure and Supply chain: You need to look at how you can protect your infrastructure and insure it to mitigate loss in the event of a disaster;
- Reputation: How do stakeholders and the communities you do business in perceive you?
- Stranded assets: Insuring your business isn’t obsolete in a few years.
Boshoff explains stranded assets by saying: “You’ve got to be very, very certain that you don’t have a business that is running some kind of operation that it’s going to be obsolete in a couple of years' time. Think for example of fossil fuels and coal mines, not because they are necessarily bad, but because industries are moving away from them and you don’t want that to be your sole offering or your only product or only asset.”
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It isn't all doom and gloom, as climate resilience can also present businesses with the opportunity to pivot and expand into untapped markets, like the renewable energies sector.
“One of the opportunities is the demographic that is involved here. Think of millennials: They are very, very aware of climate change. They are the generation that is going to inherit this planet and if they decide that your company may not be on the right track, they can very quickly boycott you. Just think of the power someone like Greta Thunberg has got,” he adds.
Nedbank leads the way in its sector and is known as the 'green bank', helping businesses see the opportunities in climate resilience by creating various funding mechanisms to support the shift to more sustainability-focused business models.
Click HERE to let Nedbank Commercial Banking help your business stay Ahead of the Curve.