How to build a successful corporate climate strategy

As the urgency to combat climate change intensifies, businesses are increasingly expected to adopt comprehensive plans to address their environmental impact. A well-designed corporate climate strategy is more than just a public commitment—it’s a roadmap for driving sustainable growth, reducing emissions, and creating long-term value for stakeholders. Here’s how organizations can build and implement a climate strategy that delivers results.

Define Clear Goals Aligned with Science

A strong corporate climate strategy begins with setting measurable, science-based targets. Frameworks like the Science Based Targets initiative (SBTi) provide organizations with guidance to align their goals with global efforts to limit warming to 1.5°C. Companies like Microsoft and Unilever have set ambitious targets, such as achieving carbon neutrality or net-zero emissions, ensuring their strategies are rooted in actionable benchmarks. Clear, science-aligned goals hold organizations accountable while signalling credibility to stakeholders, investors, and employees.

Engage Employees as Key Stakeholders

Employees play a crucial role in the success of a corporate climate strategy. By fostering employee climate action, businesses can build a culture of sustainability from the ground up. For example, Salesforce has empowered employees through its "Earthforce" program, a global employee resource group dedicated to driving environmental initiatives. Earthforce encourages teams to engage in activities such as reducing office waste, adopting sustainable commuting options, and participating in community-focused volunteer projects. Engaged employees can drive grassroots innovation, implement sustainable practices in their roles, and advocate for climate action internally and externally.

Leverage Data and Technology

Accurate data and innovative technology are vital for tracking emissions, identifying inefficiencies, and measuring progress. Tools like carbon footprint calculators and advanced analytics platforms can provide actionable insights. Data-driven strategies ensure transparency, enable informed decision-making, and allow organizations to adapt to changing conditions.

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Collaborate Across Value Chains

A corporate climate strategy must extend beyond company walls. Engaging suppliers, customers, and partners in sustainable practices is critical to addressing indirect emissions (Scope 3). Companies like IKEA have taken bold steps by collaborating with suppliers to source renewable energy and reduce emissions throughout their value chain. Collaborative efforts amplify impact and help organizations create systemic change within their industries.

Communicate Progress with Transparency

Transparent reporting on climate action is key to maintaining stakeholder trust. Frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) help organizations standardize climate reporting. Regular updates on progress toward goals, challenges faced, and lessons learned demonstrate accountability. Open communication builds trust with investors, customers, and employees, while reinforcing the organization’s commitment to sustainability.

The Business Case for a Corporate Climate Strategy

Beyond environmental benefits, a well-crafted corporate climate strategy can lead to financial and operational advantages. Studies show that companies with strong climate policies experience higher employee retention, greater investor interest, and increased resilience to regulatory changes. Moreover, aligning with climate goals can open doors to new markets and innovations, ensuring long-term competitiveness.

Building an effective corporate climate strategy requires clear goals, employee engagement, data-driven insights, and collaboration across value chains. Companies that invest in thoughtful, transparent approaches not only mitigate their environmental impact but also position themselves as leaders in the global transition to a sustainable future.