Companies are setting net zero and other climate commitments in growing numbers to demonstrate their readiness to take action in the face of climate change. However, meaningful details about how these commitments and even climate change itself will affect corporate strategy are scarce. Such clarity is particularly important for assets, companies, and industries in transition. The lack of clarity is impeding market reactions to climate commitments.
Investors are looking for clearer insights on the impact of climate change on corporate capital allocation plans, opportunities for revenue generation, and changes to strategic goals and KPIs. Companies are looking to communicate how they are evolving their business model and approach for resilience in a transitioning world.
FCLTGlobal’s Climate Transition Conversation Guide (based on Driving the Conversation: Long-Term Roadmaps for Long-Term Success) provides a framework that companies and investors can use to engage fruitfully on how climate change impacts corporate plans for long term value creation. And it provides examples of how companies have communicated their transition plans to investors.
Companies can use this tool to drive internal deliberations and decision-making as they develop a robust climate transition plan that is integrally linked with their long-term strategy. Investors can use this tool to engage portfolio companies on the details of this integration.
Download the Climate Transition Conversation Guide