T H E 1 2 T H U N I T E STRATEGY D N A T I O N S G L O B ADOPT SUSTAINABLE ESTABLISH AMBITIOUS, SCIENCE- ADOPT A NATURE-POSITIVE President, CEO, and Representative Director of A L C BUSINESS MODELS BASED CLIMATE TARGETS BUSINESS STRATEGY Asahi Group Holdings, Ltd., states, “As a group O M P of companies that operates businesses using A To embed sustainability into their core strategy, In our 2021 CEO Study, Climate Leadership in C While biodiversity has been overlooked on T the blessings of nature, including water and - A CEOs are adopting sustainable business models the Eleventh Hour, 57% of CEOs felt they were the CEO agenda, leading CEOs are taking C agricultural products, we at Asahi show C E to transform their businesses for long-term making sufficient efforts to limit the global rise sustainable business models to the next level N T sensitivity to biodiversity. Now that the TNFD U growth. As Chairman of the Board of Directors in temperature to 1.5°C above pre-industrial R by championing nature-positive strategies. framework has been put in place, we are working E C and CEO of Aena, Maurici Lucena Betriu, explains, levels. Yet only 2% of those same CEOs had a E Leading examples holistically account for a to assess our impact on biodiversity to accelerate O S “Being part of the sustainable transformation validated target in line with the Science-Based business’ potential impacts on biodiversity. T our efforts. However, biodiversity protection is U D is now necessary. Due to regulations, as well Targets Initiative (SBTi). As Lucara Diamond Most CEOs (80%) currently feel that they have something individual companies cannot do alone Y as the science of climate change, we know we Corp’s President and Chief Executive Officer, a strong understanding of how their business – we must work together as a whole industry and need to be a reliable company for our clients and Eira Thomas, shares, “It’s easy to talk about impacts biodiversity, and 72% of CEOs say that as whole society.” customers.” your ambitions, but it’s much more difficult to they understand how to leverage nature-based put in place tangible, achievable targets and solutions within their company. However, only More than half of the CEOS (63%) are launching programs that are realistic when it comes to 35% of CEOs are initiating nature protection and/ INCLUDE ESG IMPACTS IN new products and service offerings for sustainability. balancing sustainable development with other or restoration projects, indicating that this is a INVESTMENT DECISIONS Embracing sustainability is therefore not only company priorities.” high-growth space. Adopting a systems-thinking spurring innovation, but also helping open new approach that looks at relationships rather To ensure that investment decisions are markets and attract or retain customers. To maintain a competitive edge and stay ahead than components across an ecosystem helps made with long-term value in mind, CEOs of regulations and industry norms, business companies understand their holistic impact and are reassessing how they evaluate capital Other CEOs are making more transformative leaders must adopt sustainability targets aligned encourages long-term strategic planning. allocations. In particular, leading CEOs are changes, transitioning to circular business with the SBTi. SBTi reports that 35% of CEOs Embracing a nature-positive business strategy going beyond economic returns, and embedding models (49%). There are significant efficiency agree that setting science-based targets helps helps companies proactively address risks, ESG criteria in their investment decisions gains that come with a transition to a circular companies increase resilience against upcoming evaluate their overall impact, and often to deliver broader societal value from their 24 economy, with the United Nations Industrial regulation. Furthermore, 55% of CEOs share encourages collaboration with other industry capital. As Atsushi Katsuki, President, CEO, and Development Organization (UNIDO) estimating they’ve gained competitive advantages from and government partners. As Keiichi Iwata, Representative Director of Asahi Group Holdings, 25 that by 2025, around $1 trillion could be saved setting science-based targets. Going through Representative Director & President of Ltd., states, “One way of building resilience is 23 in materials under circular business models. this rigorous process ensures companies are Sumitomo Chemical Company, Ltd., says, evaluating investments in a new way – not just Not only do these circular models reduce taking the time to think about their holistic “Nature positive is a concept or approach that the profit or cost reduction potential, but the waste flows, but they also increase businesses’ impact, track and gather data, and set a plan encompasses carbon neutrality. Mitigating and value it provides for society and sustainability.” resilience to supply chain shocks through reducing in motion to reduce emissions aligned with the reversing the loss of the components of nature, Some CEOs are embedding this ESG mindset in their dependence on limited raw materials. 1.5°C target, helping them craft their overall such as air, water and soil, is a pressing issue internal projects – from developing sustainable sustainability strategy. faced by humanity, and we should meet this products, to modernizing factories, to acquiring New, sustainable business models will challenge head-on, placing utmost and equal talent. In addition, some CEOs considering also facilitate structural transformation, importance on each of those components.” mergers & acquisitions (M&A) are integrating creating jobs in resource recovery, repair, and ESG criteria into their due diligence process – a remanufacturing. However, it is equally important Recently, the Taskforce on Nature-related lever companies can use to acquire the skills, to ensure workers share in the benefits of these Financial Disclosures pilot program has launched products, and services they need to build a sustainable models, with an emphasis on living with 23 member companies. The hope is that this sustainable future. Consequently, CEOs can wages and sustainable skills. standard can set the tone and assist companies ensure all ventures have net-neutral or positive in measuring and curbing their impacts on sustainability impacts, thereby proactively nature, and drive further uptake of nature- mitigating risks and building a compelling case positive business strategies. As Atsushi Katsuki, for investment decisions. 23. United Nations (2021) The circular economy, cooperatives and the social and solidarity economy. 64 24. Science Based Targets (2018) Six business benefits of setting science-based targets. 25. Ibid. 65