Role of organizational capacity in climate goals

Sharing here my latest contribution to Inc. Magazine on why the climate transition will depend not only on capital, but on the capabilities organizations build to turn climate investment into real operational change. Much of the conversation around decarbonization focuses on capital. The scale of investment required to transform energy systems, infrastructure, and industrial processes is enormous. That focus is understandable. Financing the transition is essential. But while working on this piece, one point became increasingly clear: even when capital is available, the transition does not happen automatically. It happens inside organizations. It happens through the work of people who redesign processes, adjust business models, integrate climate risks into financial decisions, and operate systems that are more efficient and less extractive. Research suggests that between 25% and 50% of existing roles will need to evolve to respond to climate and social priorities. In many cases, the transition will not depend on entirely new sustainability jobs. It will take place within functions that already exist across organizations. For example: • Finance teams integrating climate risk into capital allocation • Procurement teams embedding emissions criteria into supplier decisions • Operations teams redesigning processes to reduce resource intensity • Strategy teams incorporating sustainability into long term planning The climate transition therefore has a capability challenge, not only a financing challenge. Capital enables change. But skills, talent, and organizational capabilities determine whether change actually happens. Curious to hear perspectives from others working in this space. Where do you see the biggest capability gaps today when organizations try to translate climate commitments into operational decisions?

This morning's breakfast discussion with Business Insider reinforced something I see daily: #resilience isn't just a buzzword, it's become the defining capability that separates thriving organizations from those merely surviving. The conversation centered on how companies are leveraging #sustainability insights to build organizational resilience through comprehensive risk evaluation and translating climate considerations into sustainable competitive advantages. What struck me most was the shared recognition that these aren't separate initiatives, but interconnected strategies for long-term business continuity. Exercises like #doublemateriality and climate risk and opportunity assessments (#CCRO) have evolved far beyond compliance tools. They've become essential frameworks for understanding how environmental and social factors intersect with core business operations, supply chains, and strategic planning. When done rigorously, they reveal the connections between sustainability performance and business resilience that might otherwise remain invisible. Last week, we published our updated Sustainability Materiality Report, which reflects years of learning about how to make these assessments truly decision-useful rather than just comprehensive. The process taught us that the most valuable insights come not from identifying every possible risk, but from understanding which factors could fundamentally alter our business trajectory. As #ClimateWeek unfolds, these conversations feel particularly timely. Building deep understanding of both #mitigation and #adaptation strategies isn't just about environmental stewardship, it's about developing the organizational awareness needed to navigate an increasingly complex operating environment. Those around today's table represented diverse stakeholder groups, yet we all shared similar challenges: how to build systems that can anticipate change rather than simply react to it. The answer consistently pointed back to the quality of our risk assessment processes and our willingness to integrate those insights into strategic decision-making. #ClimateAction requires this level of institutional intelligence—the capacity to see connections, anticipate disruptions, and adapt accordingly. Companies that master this integration will find themselves better positioned not just for environmental challenges, but for the full spectrum of changes reshaping business today.

Many organic associations spend the bulk of their capacity on regulatory and certification work. Important efforts. But that leaves little time for building the sector itself. Organic BC's new 2026-30 strategy is a direct answer to that problem. Following decades of work on regulatory and certification issues, Organic BC is grabbing four other levers of change: advocacy, market development, education and collaboration in organic value chains, and not least—building the organizational capacity to drive these transitions. This was one of the earliest lessons at Organic Denmark. We turned standards and certification over to others (our government in our case, under our watchful eye) and united organic farmers, processors, consumers and food professionals around a shared mission: win strong policy, grow the market, and develop organic farming. That decision made all the difference. What strikes me about Organic BC's plan is how tight it is.    • Four pillars   • Balancing push and pull measures   • Clear top priorities for the next 12-18 months Strategies don't have to be long! - The four pillars: 𝟭) 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗗𝗲𝗺𝗮𝗻𝗱 𝗚𝗿𝗼𝘄𝘁𝗵 With a strong focus on creating partnerships with retail and advancing organic public procurement. 𝟮) 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗚𝗿𝗼𝘄𝘁𝗵, 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗘𝘅𝘁𝗲𝗻𝘀𝗶𝗼𝗻 Policy supporting farmers with knowledge and transition subsidies, and expanding access for young and indigenous farmers. 𝟯) 𝗣𝗼𝗹𝗶𝗰𝘆 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗮𝗻𝗱 𝗦𝗲𝗰𝘁𝗼𝗿 𝗥𝗲𝗽𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 Positioning organics as part of the solution on climate, food security and rural development—where organics delivers! 𝟰) 𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆, 𝗠𝗲𝗺𝗯𝗲𝗿𝘀𝗵𝗶𝗽 𝗮𝗻𝗱 𝗦𝗲𝗰𝘁𝗼𝗿 𝗜𝗱𝗲𝗻𝘁𝗶𝘁𝘆  Food system transformation needs a strong catalyst, motivating all to action and collaboration. But too often, our own organizations are forgotten. It's like oxygen masks on a plane—organic organizations need oxygen if they are to help others survive and thrive. - From my conversations with Organic BC and ministry officials in British Columbia, I think this plan is clearly doable. And what makes this especially worth paying attention to: Organic BC is not a large organization. They don't have the capacity of many of their counterparts. But they've built a strategy with the right combination of elements. That's a lesson for any small organic association. Small can still be strategic. And effective. And then grow! Organic BC is also using this pivot as a platform for membership growth and fundraising—which is exactly the right move. I'd encourage organic actors and philanthropy to get behind this effort. See link to the strategy in the comments. Well done Eva-Lena Lang and the team, board and active members at Organic BC!

🔰 Certifications Don’t Deliver Sustainability. People Do. Organisations invest in: ✔ ESG strategies ✔ Carbon accounting ✔ Green building certifications ✔ Sustainability reporting frameworks But this is what I’ve consistently observed. There is no point having certifications or sustainability targets if employees don’t understand their role in achieving them. Over the years, I’ve had the opportunity to design and deliver sustainability training programmes inside organisations including during SLT Data Center’s green building certification journey not just to explain standards, but to build internal capability. Because sustainable performance depends on: • Engineers understanding energy and carbon data • HR aligning culture with ESG goals • Procurement embedding responsible sourcing • Operations teams tracking meaningful KPIs • Leadership understanding the business case Sustainability targets are not achieved by consultants. They are achieved by empowered internal teams. In this article, I share how to design an effective corporate sustainability training programme that aligns with business strategy and drives measurable impact. 🔗 Read the full Eco Hive Blog article here: https://lnkd.in/dhsAYJQj Sustainability transformation starts from within. If your organisation is ready to move from strategy to execution, I’d be happy to connect. #CorporateSustainability #ESGStrategy #CapacityBuilding #SustainableLeadership #GreenSkills

Over the years, I have come to realize that while climate finance remains essential, capacity building is often the missing piece that determines whether climate ambitions can be successfully translated into action. Many countries, organizations, and institutions have clear commitments and ambitious targets. However, effective implementation requires the right knowledge, skills, governance frameworks, and technical expertise to develop bankable projects, access financing, and deliver measurable outcomes. Building capacity is not only about training. It is about empowering people, strengthening institutions, fostering collaboration, and creating the enabling environment needed to accelerate sustainable development and climate action. As the global community moves from commitments to implementation, investing in people and institutions will be just as important as investing in projects and technologies. The most sustainable investment we can make is in the capacity of people to lead change. #Sustainability #ClimateAction #CapacityBuilding #GreenEconomy #ClimateFinance #Leadership #EnergyTransition #GAGE #AFRICA

One common mistake and challenge associated with corporate carbon footprint measurement is the critical decision of how to set up your organizational structure? Establishing an organizational structure for carbon management is crucial—not just for compliance, but as the foundation for effective climate action. Here’s a breakdown of key best practices to keep your company on the right path: 1️⃣ Define Boundaries Thoughtfully   The first step in carbon management is choosing the right boundary approach (operational, financial, or equity) as outlined by the GHG Protocol. Most companies use Operational Control for simplicity and effectiveness, aligning emissions data directly with decision-making processes. 2️⃣ Prioritize Accountability and Insight   A well-designed structure supports: - Accountability: Assign responsibility for emissions to specific teams. - Data-Driven Decision-Making: Analyze emissions by business unit, facility, or region to identify hotspots. - Goal Setting: Establish baselines and KPIs, setting clear targets across levels. 3️⃣ Start Simple, Scale Gradually   Begin by reviewing your current org chart. Group emissions by practical categories (e.g., facilities, business units). As your data grows, refine the structure for greater granularity, which brings improved visibility without overwhelming your team. 4️⃣ Tailor for Practicality  Focus on physical locations that generate emissions—factories, warehouses, etc. Customizing your approach by industry (e.g., retail, manufacturing) ensures efficiency and clarity. Getting this right now will create a robust foundation for sustainable operations, ensuring your team is empowered to measure, manage, and reduce emissions effectively. 

ISO’s New Climate Change: The role of organizations in addressing climate change is more critical than ever. In response, ISO has recently expanded its guidance to help businesses incorporate climate change considerations into their management systems. This update is especially relevant across standards like ISO 9001, 14001, 45001 and related frameworks that support management and sustainability. 1) Understanding Climate Risks and Opportunities Organizations are encouraged to identify and assess climate related risks and opportunities both for their operations and supply chains. This proactive approach helps companies to adapt to changes in the regulatory, environmental, and market landscapes. 2) Integrating Climate Goals into Strategy ISO’s new guidance emphasizes the importance of embedding climate objectives into core business strategy. By aligning climate actions with strategic goals, companies can address climate change while also enhancing resilience and long-term growth. 3) Implementing Effective Climate Actions Implementing climate initiatives requires practical steps like improving energy efficiency, reducing waste, and optimizing resource use. Monitoring these actions and tracking progress over time will enable continuous improvement, another central tenet of ISO standards. 4) Engaging Stakeholders Addressing climate change is a collective effort. ISO encourages businesses to engage both internal and external stakeholders employees, customers, investors, and communities—in their climate actions. Collaboration and transparency not only enhance credibility but also create a culture of accountability and shared purpose. Some Practical Tips for Implementation Conduct a Climate Risk Assessment: Identify potential climate-related risks that could impact your operations and assess their likelihood and potential impact. Set Clear Climate Targets: Establish measurable goals for emissions reduction, waste management, and energy efficiency, aligning these with industry best practices and regulatory requirements. Embed Climate Metrics into Reporting: Incorporate climate-related KPIs into your reporting process to track progress, share achievements, and identify areas for improvement. Build Climate Awareness and Training Programs: Equip your team with the knowledge and skills needed to contribute to your climate goals, creating a shared understanding across all departments. As an ISO auditor, I’ve seen how organizations that prioritize sustainability and climate resilience benefit from strengthened stakeholder relationships, reduced risks, and enhanced market reputation. Implementing these new ISO climate guidelines could be a powerful catalyst for positive change. What steps has your organization taken to address climate change? I’d love to hear your insights 😊 #ISO14001 #ClimateChange #Sustainability #DNV #ClimateAction #ISO #ContinuousImprovement #RiskManagement #SustainableGrowth #Leadership

Why state capacity, not just political will, determines climate action success. A new comment discusses that implementing climate policy depends on two measurable dimensions: institutional capacity to enforce regulations and fiscal space to finance transitions. This framework explains variations in national approaches beyond traditional political will narratives. Nations like the EU, combining robust institutions with fiscal capacity, deploy regulatory measures and financial incentives. Meanwhile, the U.S., despite substantial fiscal resources, relies predominantly on incentives due to institutional constraints - explaining the design choice of the Inflation Reduction Act's subsidy-focused approach. This model provides insight into recent G20 Brasil 2024 developments in Rio. While members unanimously endorsed "building a just world and sustainable planet," their implementation strategies diverge based on institutional capabilities. The declaration's emphasis on differentiated responsibilities reflects these structural realities. The paper indicates specific pathways for enhancing climate policy effectiveness: developing specialized climate institutions, activating subnational capabilities, and creating targeted financing mechanisms. This analysis arrives as nations prepare to implement enhanced NDCs following COP28's mandates. The findings suggest focusing on institutional alignment rather than policy preferences alone for policymakers and organizations. Effective climate action requires understanding the relationship between policy design and implementation capacity within different national contexts. Kudos to Jonas Meckling and Ari Benkler from the University of California, Berkeley.

The Science Based Targets initiative (#SBTi) now lists more than 10,000 companies globally with validated decarbonization targets, including over 2,000 with net-zero commitments, reflecting growing corporate climate ambition. However, the critical question remains how do companies actually plan to achieve these targets? Delivering on them often requires a fundamental transformation of business models, capital allocation decisions, and organizational incentives. This is where climate transition planning becomes essential. #Transitionplans provide the “how” and “when” behind climate ambition, translating long-term targets into credible pathways for implementation. While setting long-dated targets has become increasingly common, translating them into actionable plans, and clearly communicating them to stakeholders is far more challenging. When forward-looking disclosures by companies rarely extend beyond a 3-5 year horizon, developing credible multi-decade strategies can appear both difficult and risky from an accountability perspective. The challenge becomes even greater when companies do not see immediate operational or financial benefits from undertaking such an exercise. Yet building internal capacity and expertise in transition planning can deliver significant long-term value, particularly because transition planning requires organization wide change, rather than something confined to sustainability teams. The infographic below highlights the different use cases of transition plan information. As investors, lenders, and regulators increasingly rely on such disclosures, expectations from corporates will continue to rise. Companies that begin investing in transition planning capabilities today are likely to be far better positioned to navigate this shift. Sharing an op-ed co-authored along with Tanya Rana for the World Economic Forum. Link in comments.

"HR's Key Role in Shaping a Sustainable Future: Insights from the Africa Climate Summit" Introduction As the world grapples with the profound challenges of climate change, the Africa Climate Summit provides a platform for discussing innovative solutions and strategies. 1. Green Recruitment: Building a Climate-Conscious Workforce The first step in HR's #climate change journey is to source and attract talent that aligns with sustainability values. By incorporating environmental considerations into recruitment practices, organizations can build a workforce that inherently values eco-conscious practices. This includes: Eco-Centric Job Descriptions: Crafting job descriptions that emphasize the organization's commitment to sustainability can attract candidates who share these values. Green Interviews: Evaluating candidates for their environmental awareness and commitment during interviews. Sustainability Training: Providing onboarding programs that educate new hires about the organization's eco-friendly practices. 2. Sustainable Workplace Policies and Practices #HR plays a central role in creating and implementing policies that promote sustainability within the workplace. This involves: Sustainable Benefits: Promoting benefits such as flexible work arrangements, public transport subsidies, and eco-friendly office spaces to reduce the carbon footprint of the workforce. Performance Evaluation Metrics: Incorporating sustainability objectives into performance assessments to reward and recognize employees for their contributions to climate action. Inclusive Diversity: Encouraging diversity in sustainability perspectives to foster innovation in environmental practices. 3. Building a Culture of Sustainability A critical HR function is cultivating a workplace culture that values sustainability. This includes: #LeadershipEngagement: Engaging top executives in climate initiatives to set an example for the entire organization. Reporting and Transparency: Monitoring and reporting on sustainability metrics to create accountability. #Collaboration: Facilitating collaboration between HR and other departments to develop and implement holistic sustainability strategies. 4. Case Studies: HR's Impact on Climate Action Illustrating the real-world impact of HR-led climate initiatives is crucial. Several organizations have successfully integrated HR and climate action, yielding positive results in terms of reduced carbon footprints, improved employee satisfaction, and enhanced brand reputation. We can draw inspiration from these success stories. 5. Challenges and Future Directions While HR's potential for influencing climate action is immense, it is not without its challenges. Overcoming resistance to change, resource constraints, and regulatory hurdles is essential. Looking ahead, HR's role in climate action will evolve, with technology and data-driven decision-making taking center stage.