Insights from Reset Connect
A nucleus of cross-sector discussions during London Climate Action Week 2023
Reset Connect was held in the ExCel Centre, billed as London Climate Action Week’s flagship event, and ‘the UK’s largest sustainability ecosystem and green investment event’.
On entering the space, there were many branded stands; mainly companies I wasn’t familiar with— but became more familiar over the course of the two-day event, as many were also there to participate in talks and discussions.
Behind the back wall, three main stages were revealed, with well-functioning silent disco technology: the stages were in close proximity, so you could pick up a pair of headphones tuned in to the right stage, and enjoy clear sound quality without disruption from other attendees moving around.
The format of discussions, back-to-back panel discussions on both days, was very successful, with cross-sector representatives from local authorities; global company or start up C-suite; focussed sustainability roles; to academics. The fact that many in influential roles are here having these conversations openly and collaboratively, was the key thing, and I was very interested to learn the challenges faced by different players.
The panel discussion format seemed to bring to the fore that no one is ‘the’ expert, and the repeated message, is that no-one can do it alone. A purposeful conversation, to share direction, concerns, steps being taken, is all important. No one person has the answer, and collaboration is underscored as the aim of the game— and a key theme of the event.
Ten insights from Reset Connect:
1. Low hanging fruit has in many cases been picked
Those that talked about having made progress, or being halfway there, especially in relation to 2030 targets, admit that they have so far benefitted from taking the low hanging fruit. This half represents perhaps all the things that can be done without ‘changing the system’.
We should be prepared for the work ahead to be the most difficult. This was clearly stated by Glasgow City Council’s Susan Aitken about Glasgow’s goal to be carbon neutral by 2030; Balfour Beatty’s Group’s Sustainability Director, Joanna Gilroy— and echoed by many others in between.
The urgency of the task was restated in relation to this hard work: we are just 6 summers away from 2030.
2. Collaboration and partnerships across organisations—and competitors—is vital
We heard from local authorities how they are the experts in their communities in terms of collaboration: working in partnerships with all sectors to deliver change. No one can do it alone, as much in local government as in business. Companies must look at the benefits of collaboration with competitors. Competitors face similar challenges, is it possible to pair up to make change happen?
The competition around net zero, and reference to a race is unhelpful. What needs to be done is difficult. Joanna Gilroy, again from Balfour Beatty mentioned running experiments and pilots can be positive and, then at the least, sharing a list with competitors of all the things that didn’t work.
Where some businesses can sidestep and change their business models, for the construction industry as a whole, it’s an incredible challenge. There is no alternative for the need for concrete and steel, it’s something that needs to be tackled head on and sharing knowledge is only logical. “We only win if everyone wins” was reiterated through various discussions and points of view.
3. We need more internal collaboration, as well as nurturing company culture
Increased collaboration internally in companies is much needed. Training and increased shared knowledge in topics such as the circular economy, is key to making progress. Sustainability agendas and decision making need to connected with those who create products and those who control budgets. The people who want the change the most can’t usually make it happen. Multi stakeholder management is always needed.
For a company like Danone, we heard that with greater collaboration, they found that trade-offs that needed to be made, could balance out across the business as a whole. Once they got rid of siloed conversations and decisions, it was easier to make the business case for change. There are internal barriers to taking sustainability more seriously. Unless it helps meet financial challenges, it’s difficult to get change to happen.
Creating internal culture is the way to move the dial. Plans are built in a boardroom, not necessarily taking people along. There is the need to talk the language throughout the business, bringing sustainability into the DNA. Tim Hodgson, founder of My Net Zero said that the key is to listen first, to impact the company culture. Meet people them where they are and support them in their aspirations. Proud employees will talk about the work of their company to their friends and family. Sam Maguire from Clarasys referred to data showing 90% of employees want to feel part of the sustainability goal, but only 10% do. It’s known that increasingly employees will join or quit a company based on values alignment.
4. Companies feel attacked for trying— but not getting it perfect
This issue has been frequently discussed recently, giving rise to the terms greenwashing and greenhushing that have been filtering into consumer consciousness. Those wanting to communicate agendas are feeling defensive, and anxious about publicising anything— and at worst, feeling like they can’t make advances without access to all the information.
At the session, ‘A Day in the Life: Managing Sustainability in Major Organisations’, we heard the what companies need, is to be transparent, credible, and to have a plan— and closely following that— the need to be careful with words, and to be taking action. Using fact-based communication is a key principle to avoid the kind of public slip ups feared. Companies can build credibility by saying they don’t know all the answers. ‘Misleading by omission’ is something the ASA is looking out for. Those involved in the discussion ardently emphasised that in most cases, companies are not deliberately greenwashing. ‘Organisations and individuals generally have the best intentions; sometimes they go in the wrong direction, and don’t correct it well’. Elisa Moscolin, Sustainability Executive Vice President at Sage described: ‘You’ve got to feel uncomfortably excited to get it right’. You need to know enough that whoever is going to tap you on the shoulder, you can defend yourself.
We heard that with the vast majority of global companies doing nothing, the plea is for journalists to focus there and stop bashing the small percentage who are doing something.
5. Perfection mustn’t be the enemy of progress
Following closely to the last point— I’ve heard this many times recently. It’s important to recognise that no sustainability plan is perfect. We need to get comfortable not having the perfect plan in advance, yet finding ways to push forward.
Trying to get the most accurate scope 3 data set has caused data paralysis: ’You can’t manage what you can’t measure’ is useful, but also — we can’t wait.
6. Terminology is a headache
Elisa Moscolin from Sage mentioned the new and extended vocabulary of greenwashing, greenhushing, greenwishing, and greenbotching that are being used more frequently, but the issue is more core to companies’ communications.
As more embrace the conversation; the labels and terminology are not yet universally settled, but the best thing to do is to try to create a shared understanding within the company or collaborative group, and elaborate and clarify to communicate effectively. There is the topic of internally communicating plans and action, and then the more pressurised topic of communicating those to the outside world.
In a separate recent event, the ASA were weighing in on the topic of problematic terminology, and there were some overlapping themes. The ASA’s advice was that ‘eco-friendly’ and ‘sustainable’ - are considered the two words that are just too difficult. Avoid using them in your claims. Such a high bar that you have to meet. The advice is to think through the whole life cycle and avoid making absolute claims.
7. There is a need for more regulation, both for local authorities, and for businesses.
We are needing central government to weigh in and lead the way in some areas. For local councils, a lack of a clear framework, guidelines and a roadmap from central government is hindering progress.
Where regulations are not clear, it impacts their ability to work with private investors especially— to get the right investment over the necessary longer time period. Examples given were plans on phasing out gas boilers, or the introduction of e-bikes. For businesses, governments, investors— there is a lack of alignment. There is stronger direction coming from Europe, and hopes that green deal regulation will create positive impact even for the UK out of necessity to interact with Europe.
8. A just transition is needed
You can’t make real, long-lasting progress without including the social side in the plan— the importance of this was clearly recognised by local leaders. They are putting people and well-being at the centre of creating a sustainable city. Cities have a big role to play, and can be a test bed for innovation. Communities should lead because they will know what solutions are right for them. Susan Aitken from Glasgow City Council, stressed that the equitable part is as important in the transition. Equity is at the centre; with importance on where communities can lead the way. What may hold them back is a lack of clear vision of a just transition should look like. Companies can follow this lead and see where their strategy has impact.
9. There is drive from the public, which needs a positive response and clear leadership
There is on one hand the push, referred to as a ‘Purpose arms race’ driven by consumers. We are hearing that taking action towards a sustainable future is what customers want, and they are pushing for it— but there are of course different levels of engagement. ‘People want to make sustainable choices, but they don’t know how’. The plan should be to make it easy for them. Some may need more convincing, where the work should go into making the solution both the easiest and the most desirable.
Shape the environment, and people will naturally do the right thing, Sebastian Munden from Wrap was saying. With electronics, as an example, people only know so much about what is repairable, or what to do with certain things when they are no longer useful or required. Don’t put all the onus on consumers: listen, understand the barriers, provide incentives.
10. The co-benefits of climate action are huge
Equality, jobs, clean air, to state the fundamentals. Conversations with local leaders noted the benefits touching every aspect of peoples’ lives; from waste to transport and much more.
In business too— sustainable businesses are more resilient, better businesses. Rupert Bull, from The Disruption House has witnessed that sustainability and success go together: businesses with poor ESG scores are more likely to be in arrears, and be a credit risk. To run a sustainable business is harder work— you end up running a better business.