Kelly Moir
This past year has been hugely challenging for companies, having to navigate the pandemic and to become more climate forward thinking (under pressure from consumers, climate activists and politicians alike). “On the climate front, it’s an opportunity to adapt and evolve, or face the risk of getting left behind” Companies for Zero Waste (CZW) CEO Scott Donachie said in a recent interview. We sat down with Scott to ask him about how CZW is helping their global network of members to be at the cutting edge of these adaptations and to connect with the right people in the process.
Scott, take us through the last year and how CZW’s mission has changed with the pandemic?
“The big difference between now and a year ago is that companies are setting more immediate net zero targets, where they are acknowledging that the time is now to take action, with their own carbon and waste, and then that of their supply chains.
This is really starting to take things to a different level. Companies are finding that they need to collaborate within their industries and also with outside networks to identify innovative (yet proven and reliable) methods to achieve these new goals. So how do companies adapt to the new ‘net zero’ economy?”
How do you see the global economy changing at this time?
“There is a lot of pressure on organizations to accelerate their journey to ‘net zero’. It covers a wide matrix, from their consumers, staff members, investors, politicians and regulators. Before the pandemic, there was a growing pressure from consumers and environmental activists for companies to be more sustainable. With the realization that future pandemics might be caused by environmental damage, deforestation etc, the general public is arguably now more than ever focused on the environment. This is changing the ways how companies need to address their impact, and then to prove how much they are now focused on sustainability. It’s no longer an option, it’s business as usual and highly necessary.”
What is the most important factor in accelerating the zero waste movement?
“The key is that companies must now formalize (and then also publicize) their plans to achieve ‘net zero’ and over a specific timeline. Investors and shareholders, lenders (especially if a company is sourcing ESG bond finance) and increasingly their staff and consuming public are not holding companies to show actual results, where it’s no longer acceptable to just talk about what they are planning to do.”
How is the role of sustainability director changing?
“The role of the sustainability director is evolving to what we see now as the need to be able to not only talk about their company’s ‘net zero’ plans, but to also now actively support the adoption of new eco-innovations, all the way to their implementation across their company. These roles might see the need for more operationally and commercially experienced executives joining their sustainability departments to support this endeavor. We also expect to see more board members and the executive management teams taking on more focus and responsibility for their company’s journey to ‘net zero’.
One great example we have seen is CEOs who are taking on more active roles to support their sustainability directors in their roles. This new model for heighted corporate focus on sustainability is hugely encouraging, as its starting to empower whole organizations to drive their journey to ‘net zero’.”
What is the biggest inhibitor for achieving zero waste at organizations?
“From what we’ve learned at CZW over the last two years is that some organizations are still operating with each department in its own silo. For example, we had a leading automotive manufacturer that had a matrix of supply chain directors, engineers and sustainability managers each with a specific role in the organization, and with no remit to influence any other departments. Their feedback was that this left their sustainability team to operate in complete isolation at their company HQ, with all the other departments then essentially excluded from engaging on any ‘net zero’ topics or initiatives.
And due to the complicated matrix of the organization, there was a vast amount of confusion on any environmental rules, certifications and general programs for water, zero waste and zero carbon across the business. The operational departments also gave feedback that they were not able to easily share information on new eco-innovations they were seeing competitors or new start-ups adopting, risking their brand and ultimately the sales of their vehicles.
The same silo challenge can then extend to particular industries, where one industry might only be aware of its own (poor) attempts at achieving ‘net zero’ goals, and then be ignorant of the innovations of adjacent or other industries.
How can companies overcome this issue?
“The solution lies largely in industries and everyone within a company having access to market-wide intelligence on the best practices and achievements of others in delivering on their ‘net zero’ goals in this case.
This is where CZW’s monthly ‘Thought-Leader’ seminars and ‘Peer-to-Peer Networking’ sessions can create the opportunities for the cross-sharing of a lot of information. These events are an opportunity to learn from the recent and practical experiences of industry leaders, and then to build engagement with other peers from a wide cross-section of different industries.
By creating curated forums for corporate members to share meaningful and actionable information, they genuinely appreciate hearing about the challenges that other companies are facing and then overcoming. It’s also an opportunity to brainstorm solutions to problems with a cross-section of experts, advisers and other industry participants.
Part of our mission at CZW is to help companies benchmark what other industries are doing locally and globally. This information can then be shared by all our members to support local initiatives and corporate buy in, which can then be scaled across an organization.
By creating this constant ‘growth mindset’ in our members to gain regular knowledge and updates on the topics we cover, we feel our CZW community can demonstrate their collective commitment to achieving ‘net zero’ goals.”