On 20th August we held our monthly Lunch n Learn here at Chamber House in Bunbury. Corporate partner, GHD, informed and educated us on the steps to take in our business, and as importantly, in our personal lives. The transition to a low carbon economy seems all too encompassing, however what we learnt was, it must start, with us.
The difference between Circular vs Linear was explained this way: The linear (take-use-throw away) model on which our current economy is based – is depleting resources, generating environmental problems and pushing our planet to its limits. In contrast, the circular model offers us an option to redefine our development by decoupling economic activity from the consumption of finite resources and eliminating waste from the system at the design stage, creating businesses that protect the well-being of the community.
First speaker, Michele, shared how we can get ready for sustainability challenges and what we need to do.
- Understand compliance and customer requirements (eg for scope 3 emissions)
- Understand what is “material” for you
- Estimate your impacts across the Environmental, Social and Governance (ESG) factors
- Assess risks and opportunities
- Consider improvement targets
- Be ready to report to report and communicate (but be aware of greenwashing….)
Second speaker, Laura, spoke to the transition risks that are associated with the move to a low carbon economy:
- Policy changes (eg carbon pricing/low carbon mandates)
- Technological innovation
- Market changes (eg renewable energy and related technologies become cost competitive)
- Social adaptation (eg changing consumer/investor expectations)
Impacts include:
- Stranded assets
- Loss of markets
- Reduce return on investments
- Financial penalties
- Increase in OPEX
- Lack of access to capital
- Lack of access to insurance/increased premiums
- Brand impact
Final speaker Huia shared the most important question for many in the room, how do I start?
- Recoup the Value in your current supply chain – understand your baseline, design out waste, design leaner products, source circular materials, reduce unsold, wasted products.
- Sourcing Value between partners, offer collaboration or from one product/service to another
- What can you get ride of or replace that is longer lasting?
- What can you use for longer and how?
- Who is throwing out what you need?
- Growth in alternative products
- Growth in refurbished/second-use markets
- Value addition through new sources of revenue; product as a service.
What we learnt was that Climate Change and a Circular Economy go together in thinking and design. There are huge risks at stake if we are not proactive. The development of Climate Risks and Adaptation Plans for our businesses is that first step.
There are some fabulous stories of a circular economy working at its best. CHEP Pallets is one such story. The model CHEP use, keeps the elements used as many times as possible to stop the depletion of resources, mitigate environmental problems and regenerate the planet.
This is the start of an important conversation and one that we are keen to continue. Thank you to Fionnuala Hannon and the GHD Cicular Economy team for your expertise and highlighting to our community the why and the how of ESG in our businesses.
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