Building blocks of Net Zero transformation
In our role as a knowledge advisor to Microsoft on their Net Zero transformation we have created a blueprint to help guide companies as they move from Net Zero ambition to action.
Setting the scene
A key element of our global Net Zero commitment is to advocate Net Zero beyond our own operations, by supporting our clients and suppliers to reduce their carbon emissions.
This report, produced by PwC and commissioned by Microsoft, argues that making Net Zero real requires wholesale business transformation. Functions across the organisation need to play a vital role - from product development, sales and marketing, and innovation and R&D, to corporate finance and risk, governance, procurement and people.
We hope the report will be used as the basis for businesses to plan ahead, and we are actively engaging with our own suppliers on these themes.
How we helped
Our report entitled ‘The Building Blocks of Net Zero Transformation for Companies’ outlines nine key building blocks companies will need to embed to achieve Net Zero business transformation.
This includes understanding the implications of Net Zero for a company’s growth strategy and operating model, and embedding it across all business functions - from governance, to supply chains, finance and innovation.
The nine key building blocks for business transformation to deliver Net Zero are:
Ambition: Aligning to a science-based target to achieve Net Zero by no later than 2050 & to limit warming to 1.5C
Governance: Driving accountability from the top
Strategy: Embedding and aligning Net Zero into company strategy
Enterprise transformation: Key operating model changes in support of transformation
Supply chains: Transforming Net Zero supply chains
Innovation: Developing new technologies, business models and products and services to deliver Net Zero
Finance: Financing the Net Zero transformation
Transparency: Communicating action on Net Zero to key stakeholders
Engagement and influence: Enhancing the pace and scale of Net Zero action
“Many companies are at the start of their Net Zero journey, but it’s critical that the wider implications of this transformation on market strategy, corporate investment and operating model are understood; alongside the need for innovation, new skills, collaboration and R&D. Here we present a practical guide that we hope will accelerate the efforts of all organisations regardless of size or sector.”
Making a difference
Our annual UK Supplier Sustainability Forum this year focused on the same question of how businesses can move from ambition to action on Net Zero.
In a survey of suppliers in attendance, an overwhelming majority told us they view Net Zero as an opportunity for business. Specifically, 93% think the transition to Net Zero will have a mostly positive impact on business.
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