Climate-led transformation

The five-step journey to a climate-led transformation

For many organizations, the need to act is clear, but the pathway forward may not be.

Deloitte’s Five-Step Climate-led Transformation Framework helps to support organizations to move from climate ambition to action with confidence and clarity. This framework and the publication series can help business leaders design and execute a climate strategy, build leadership confidence and disclose performance against climate standards.

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It’s time for bold, coordinated and collaborative climate action in Asia Pacific

Climate change is one of the defining issues of our time. Asia Pacific has the most to gain from climate action and the most to lose from inaction.¹ The business case for action is clear – without significant and meaningful action from business and government, the devastating impacts from climate change will be felt worldwide.

The benefits of climate-led transformation for businesses are enormous. With a rapid response, we all stand to grow our economies by US$47 trillion by 2070 through increased growth and avoided damages.²

There’s no time to waste.

Explore the series

Footnotes:
1, 2: Deloitte, Asia Pacific’s Turning Point, August 2021.

Dive into the framework

Overview

The climate-led transformation framework will guide you through the five steps to help reduce carbon emissions and climate-induced losses, and capture value from the climate transition already underway.

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Dive into the framework

Overview

Explore the guiding principles to climate-led transformation:

- Climate-related physical and transition risks.

- Adaptiond mitigation action.

- Value creation opportunities.

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Dive into the framework

Overview

The steps outlined will help you to understand your emissions profile and the climate-related risks and opportunities most pertinent to your business.

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Commit to a climate aspiration

Step 1

Understand your organization’s current state, identify and prioritize material climate change issues, and define and commit to a climate change aspiration appropriate for your business.

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Commit to a climate aspiration

Step 1

Set ambitious achievable climate aspiration:

- Assess the current state.

- Identify and prioritise material climate change issues.

- Define and commit to climate change targets.

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Commit to a climate aspiration

Step 1

To create an agile climate transformation strategy, the first step is to commit to a target that is credible, achievable, time-bound and value-creating.

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Develop a climate strategy

Step 2

Assess the strategic impacts of climate change on your business and the opportunities for value creation that can come from transformation.

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Develop a climate strategy

Step 2

Consider teh factors to develop a climate strategy:

- Assess potential climate risks and impacts/

- Identify and implement opportunities for value creation.

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Develop a climate strategy

Step 2

Step 2 provides the guidance to establish a climate strategy that can be embedded across your business, reduce carbon emissions, manage climate risks, and create value through climate-related opportunities.

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Align the operating model

Step 3

Successful climate-led transformation will require an operating model that reflects a shared commitment to your organization’s aspirations and climate strategy in the near and long term.

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Align the operating model

Step 3

Evaluate the current and future state:

- Assess your operating model.

- Consider operational changes required.

- Execute changes to achieve your aspiration.

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Align the operating model

Step 3

Alignment of your operating model with your climate strategy can reduce risk, increase resilience, and create value for your business.

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Enhance organizational capability

Step 4

Developing organizational capacity to deliver your climate strategy will help to embed, sustain, and reinforce your climate-led transformation.

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Enhance organizational capability

Step 4

Equip your organization with the optimal skills and resources:

- Review what capabilities can support the new future state.

- Pinpoint capability gaps to be acquired.

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Enhance organizational capability

Step 4

Develop your organization’s capability to confidently deliver your climate strategy.

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Regularly monitor and report

Step 5

Track and disclose progress in achieving your climate targets to enable adjustments over time and maintain the confidence of internal and external stakeholders.

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Regularly monitor and report

Step 5

Enable and embed reporting:

- Map internal and external stakeholders.

- Identify the climate date needed to track progress.

- Meet disclosure requirements.

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Regularly monitor and report

Step 5

Step 5 can help enable your organization to disclose according to stakeholder needs, provide leadership with the information needed to adjust strategy over time, identify savings and costs and be accountable for performance.

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Climate-led transformation

The five-step journey to a climate-led transformation

Let’s make this work

It’s time for bold, coordinated and collaborative climate action in Asia Pacific

Let’s make this work

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Climate-led transformation

The five-step journey to a climate-led transformation

Let’s make this work

It’s time for bold, coordinated and collaborative climate action in Asia Pacific

Let’s make this work

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Deloitte 2023 CxO Sustainability Report

Dive into the framework

Overview

Dive into the framework

Overview

Dive into the framework

Overview

Commit to a climate aspiration

Step 1

Commit to a climate aspiration

Step 1

Commit to a climate aspiration

Step 1

Develop a climate strategy

Step 2

Develop a climate strategy

Step 2

Develop a climate strategy

Step 2

Align the operating model

Step 3

Align the operating model

Step 3

Align the operating model

Step 3

Enhance organizational capability

Step 4

Enhance organizational capability

Step 4

Enhance organizational capability

Step 4

Regularly monitor and report

Step 5

Regularly monitor and report

Step 5

Regularly monitor and report

Step 5

Connect with our climate experts

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