Companies are on new territory in their carbon-neutrality strategies. There is a rapid need for change and standing still is not an option. Demos Helsinki has helped many companies in the marriage of their business strategies and climate goals. This work has utilised the four-ring model developed by Demos Helsinki.
Demos Helsinki has created a four-ring model to study and execute carbon-neutrality. The model helps companies to react to climate challenges and to conduct better business. The model has been successfully implemented in the strategy work of several business branches.
At the core of the model is the company’s own carbon footprint. The core is surrounded by a second ring which facilitates the carbon neutrality of customers. The second ring is a more challenging one, but one with more significant impact.
The third ring seeks impacts on the whole industry, such as on established processes, regulation, and motivating one’s competitors. International venture capitalists are currently taking an interest in companies that operate in countries with stricter climate regulation.
International venture capitalists are currently taking an interest in companies that operate in countries with stricter climate regulation.
The fourth ring, which encompasses the whole structure, is the idea of a carbon-neutral society. Depending on the operational environment of a company, an example of this could be the Finnish government’s aim of reaching carbon-neutrality by 2035.
“It is possible today to declare oneself carbon-neutral by paying for the status, but luckily there are also other ambitious paths of action here. Microsoft has announced that it aims to become carbon-neutral by 2030 but furthermore to become carbon-negative by 2050 in a way that the company will have removed all carbon from the atmosphere that it has released since its foundation”, explains Demos Helsinki’s senior consultant Jussi Impiö.
In Demos Helsinki’s model, carbon-neutrality is at the core of all operations. Diminishing one’s carbon footprint is not only common sense, it is also sensible from a business standpoint and can boost profits. The climate-based purchasing wishes of customers are realised.
In Demos Helsinki’s model, carbon-neutrality is at the core of all operations.
“According to our hypothesis, climate work is not charity work. The core of business needs to be based on the idea that any current business strategy that is at present not zero-carbon is not a business strategy at all. If a company does not take climate policy seriously, it will face difficulties in attracting investment”, says Demos Helsinki’s senior consultant Petteri Lillberg.
Header picture: Hugo Kemmel