Net Zero Business Models
Winning in the Global Net Zero Economy
1. Auflage Februar 2023
416 Seiten, Hardcover
Wiley & Sons Ltd
ISBN:
978-1-119-89506-0
John Wiley & Sons
Weitere Versionen
Future-proof your business with a credible net-zero transition plan for the new economy.
Net Zero Business Models: Winning in the Global Net Zero Economy delivers a breakthrough approach to transition from business models contributing to climate disaster to Net Zero Business Models crucial to sustainability and profitability.
Based on the authors' business advisory expertise and insights from their research with over 200 best-in-class global companies, this book is an indispensable guide for executives, corporate directors, and institutional investors.
Discover how to implement a bona fide net zero transition plan and processes to:
* Identify new Board and Investor expectations for Net Zero Transition Plans (Beyond ESG)
* Ensure the Five eco-efficiency plans, processes and value drivers are in place as the foundation for a credible transition plan
* Select one of Four Pathways to a Net Zero Business Model as strategic options
* Apply the Three Domains for Systems Thinking required by leaders for Net Zero strategic leadership
* Align key metrics, targets, and incentive designs to accelerate business model transition
Metrics and Targets are not a plan, and a commitment to net zero is not a business strategy. Net Zero Business Models has been endorsed by C-Suites, Boards and Institutional Investors representing over $ 80 trillion in assets under management. This is the playbook you need to win in the Net Zero Global Economy.
Table of Exhibits
Table of Appendices
Prologue
Preface
Introduction: How to Use This Book
Part I: Setting the Context for Net Zero
Chapter 1: The Net Zero Opportunity
The Transformational Forces of Net Zero
Managing the Transformational Forces of Net Zero in a VUCA World
What Does "Net Zero" Mean?
Going Beyond Net Zero
What Does the Transition to a Net Zero Economy Look Like?
The Net Zero Opportunity
Summary: Where to Begin
Part II: The Technical Foundations of Net Zero Business Models
Chapter 2: An Overview of Greenhouse Gas Emissions
What Are Scope 1, 2, and 3 Emissions?
Developing a GHG Emissions Data Strategy
What Are Scope 1 Emissions?
What Are Scope 2 Emissions?
What Are Scope 3 Emissions?
Summary: Getting Started
Chapter 3: Applying a Carbon Shock Test
The $20 Trillion Problem
Some Context for a Carbon Tax
Scenario Planning for Carbon Taxes
Summary: Have Good Processes
Chapter 4: Science-Based Emissions-Reduction Targets
The Four Objectives of the Net Zero Standard
Generally Accepted GHG Accounting and Reporting Principles
Five Steps to Set Science-Based Targets
Science-Based Targets Unique to the Power Sector
Science-Based Targets Unique to the Forest, Land, and Agriculture (FLAG) Sector
Updating and Communicating Targets
The Validation Process
Summary: Science-Based Targets Are Not a Transition Plan
Part III: The Four Pathways to Net Zero
Chapter 5: The Four Pathways to Net Zero: An Introduction
Eco-Efficiency Processes and Systems
Summary
Chapter 6: Pathway One: Eco-Efficiency
Pathway One: Companies with Low Carbon Intensity Business Models
Weyerhaeuser
Microsoft Corporation
Canada Goose Holdings, Inc.
JAB
Pathway One: Companies with High Carbon Intensity Business Models
Exxon Mobil Corporation
Characteristics of Pathway One
Pathway One Risk Factors
Critical Success Factors for Pathway One Companies
Summary
Chapter 7: Pathway Two, Option One: Incremental Transformation of the Business Model--Zero-Carbon Products and Services
Re-engineering with a Focus on Zero-Carbon Products and Services
Net Zero Transformation Strategies and Transition Plans
Complete Transformation of the Existing Product and Services Portfolio to Zero Carbon
Walmart, Inc.
Nestlé
Roll-Royce Holdings
Summary
Chapter 8: Pathway Two, Option Two: Complete Transformation of the Business Model
Complete Transformation of the Business Model
Ørsted
Shell plc
Vattenfall
General Motors Company
Characteristics of Pathway Two
Pathway Two Risk Factors
Critical Success Factors for Pathway Two Companies
Summary
Chapter 9: Pathway Three: Eco-Startups, New Ventures, Spinouts, and Industry Disruptors
Climate Technology and Eco-Startups
Innovation and Industry Disruptors
About Disruption
The Disruption Opportunity Matrix
Ecolibri Srl
NuScale Power Corporation
Celsius Energy
CarbonCure
Universal Hydrogen Co. and ZeroAvia, Inc.
Incremental Innovation versus Exponential Innovation
Characteristics of Pathway Three
Pathway Three Risk Factors
Critical Success Factors for Pathway Three Companies
Summary
Chapter 10: Pathway Four: Industry Ecosystem(s) Transformers
The Four Stages of Industry Ecosystem(s) Transformation
The Transformation of the Automobile Industry
Tesla the Disruptor
Tesla: A Pathway Four Industry Ecosystem(s) Transformation Leader
The Rise of Electric Vehicles
Tesla's Business Model
Characteristics of Pathway Four
Pathway Four Risk Factors
Critical Success Factors for Leading an Industry Transformation
Summary
Part IV: Implementing a Pathway to Net Zero
Chapter 11: A Foundational Framework to Choose a Pathway
The Innovation and Return on Capital Life Cycle
Value Quadrant 1: The High-Innovation/Early-Growth Stage
Value Quadrant 2: The High-Performance/Competitive-Fade Stage
Value Quadrant 3: The Mature/Cash Cow Stage
Value Quadrant 4: The Failing Business Model Stage
How the Innovation and Return on Capital Life Cycle Effects Valuation
The Four Domains of Carbon Intensity, the Innovation and Return on Capital Life Cycle, and Valuation
Summary: Have Good Processes to Preserve and Grow Shareholder Value
Chapter 12: Preparing to Lead the Transformation: Key Elements of Successful Transformations
The Three Types of Change
Hearing the Call
Preparing to Lead to Net Zero
Startup and Staff
Create the Case for Net Zero
Assess and Build the Organization
Build Leadership Capacity to Change
Have Clear Roles
Designate an Executive Sponsor
Establish a Parallel Governance Structure
Designate a Net Zero Leader
Appoint Individual Net Zero Process Leaders
Use Experts as Needed
Align Incentive Compensation with Achieving Net Zero
Have Adequate Financial Resources to Get to Net Zero
Have a Flexible Plan
Meet People's Psychological Needs
Launching the Transformation
Summary
Chapter 13: The Three Domains of Systems Thinking
The Operations Domain
The Business Systems Domain
The Global Systems Domain
Cultivating Systems-Thinking Capacity for the Transition to Net Zero
Domains of Systems Thinking for the Pathways to Net Zero
Systems Thinking Meets Electric Vehicles and Gray Electrons
Systems Thinking and the Electric Power Sector--the Foundation to the Net Zero Economy
Systems Thinking and the Development of the Smart Grid
Systems Thinking and the Double Transformation of the Grid
Systems Thinking, Smart Grids, and Green Hydrogen
Summary
Chapter 14: Telling the Net Zero Story
Companies Need Good Data to Tell Their Net Zero Stories
The Board of Directors' Role in Telling the Net Zero Story
Investors Expect Comprehensive and Credible Net Zero Stories
The Evolution of Voluntary ESG and Climate-Related Disclosure--the Alphabet Soup
The Consolidation of Voluntary Climate-Related Disclosure into Universal Standards
The Evolution of Mandatory Climate-Related Disclosure
Telling the Net Zero Story Before the Implementation of Mandatory Climate-Related Disclosures
Other Key Roles for Disclosure Process Development
Summary
Chapter 15: Obstacles to Net Zero
Mental Obstacles
Greenwashing
Hidden Obstacles
Fossil Fuels and the Developing World
Fickle Political Support
Summary
Part V: Beyond Net Zero: Systems Change
Chapter 16: Epilogue: Toward a Net Zero Civilization
The Shift to Stakeholder Capitalism
The Infrastructure of Stakeholder Capitalism and Systems Change
Benefit Corporation Governance
MultiCapital Accounting
Doughnut Economics
Heart-Based Leadership
Conclusion
Acknowledgments
Table of Appendices
Prologue
Preface
Introduction: How to Use This Book
Part I: Setting the Context for Net Zero
Chapter 1: The Net Zero Opportunity
The Transformational Forces of Net Zero
Managing the Transformational Forces of Net Zero in a VUCA World
What Does "Net Zero" Mean?
Going Beyond Net Zero
What Does the Transition to a Net Zero Economy Look Like?
The Net Zero Opportunity
Summary: Where to Begin
Part II: The Technical Foundations of Net Zero Business Models
Chapter 2: An Overview of Greenhouse Gas Emissions
What Are Scope 1, 2, and 3 Emissions?
Developing a GHG Emissions Data Strategy
What Are Scope 1 Emissions?
What Are Scope 2 Emissions?
What Are Scope 3 Emissions?
Summary: Getting Started
Chapter 3: Applying a Carbon Shock Test
The $20 Trillion Problem
Some Context for a Carbon Tax
Scenario Planning for Carbon Taxes
Summary: Have Good Processes
Chapter 4: Science-Based Emissions-Reduction Targets
The Four Objectives of the Net Zero Standard
Generally Accepted GHG Accounting and Reporting Principles
Five Steps to Set Science-Based Targets
Science-Based Targets Unique to the Power Sector
Science-Based Targets Unique to the Forest, Land, and Agriculture (FLAG) Sector
Updating and Communicating Targets
The Validation Process
Summary: Science-Based Targets Are Not a Transition Plan
Part III: The Four Pathways to Net Zero
Chapter 5: The Four Pathways to Net Zero: An Introduction
Eco-Efficiency Processes and Systems
Summary
Chapter 6: Pathway One: Eco-Efficiency
Pathway One: Companies with Low Carbon Intensity Business Models
Weyerhaeuser
Microsoft Corporation
Canada Goose Holdings, Inc.
JAB
Pathway One: Companies with High Carbon Intensity Business Models
Exxon Mobil Corporation
Characteristics of Pathway One
Pathway One Risk Factors
Critical Success Factors for Pathway One Companies
Summary
Chapter 7: Pathway Two, Option One: Incremental Transformation of the Business Model--Zero-Carbon Products and Services
Re-engineering with a Focus on Zero-Carbon Products and Services
Net Zero Transformation Strategies and Transition Plans
Complete Transformation of the Existing Product and Services Portfolio to Zero Carbon
Walmart, Inc.
Nestlé
Roll-Royce Holdings
Summary
Chapter 8: Pathway Two, Option Two: Complete Transformation of the Business Model
Complete Transformation of the Business Model
Ørsted
Shell plc
Vattenfall
General Motors Company
Characteristics of Pathway Two
Pathway Two Risk Factors
Critical Success Factors for Pathway Two Companies
Summary
Chapter 9: Pathway Three: Eco-Startups, New Ventures, Spinouts, and Industry Disruptors
Climate Technology and Eco-Startups
Innovation and Industry Disruptors
About Disruption
The Disruption Opportunity Matrix
Ecolibri Srl
NuScale Power Corporation
Celsius Energy
CarbonCure
Universal Hydrogen Co. and ZeroAvia, Inc.
Incremental Innovation versus Exponential Innovation
Characteristics of Pathway Three
Pathway Three Risk Factors
Critical Success Factors for Pathway Three Companies
Summary
Chapter 10: Pathway Four: Industry Ecosystem(s) Transformers
The Four Stages of Industry Ecosystem(s) Transformation
The Transformation of the Automobile Industry
Tesla the Disruptor
Tesla: A Pathway Four Industry Ecosystem(s) Transformation Leader
The Rise of Electric Vehicles
Tesla's Business Model
Characteristics of Pathway Four
Pathway Four Risk Factors
Critical Success Factors for Leading an Industry Transformation
Summary
Part IV: Implementing a Pathway to Net Zero
Chapter 11: A Foundational Framework to Choose a Pathway
The Innovation and Return on Capital Life Cycle
Value Quadrant 1: The High-Innovation/Early-Growth Stage
Value Quadrant 2: The High-Performance/Competitive-Fade Stage
Value Quadrant 3: The Mature/Cash Cow Stage
Value Quadrant 4: The Failing Business Model Stage
How the Innovation and Return on Capital Life Cycle Effects Valuation
The Four Domains of Carbon Intensity, the Innovation and Return on Capital Life Cycle, and Valuation
Summary: Have Good Processes to Preserve and Grow Shareholder Value
Chapter 12: Preparing to Lead the Transformation: Key Elements of Successful Transformations
The Three Types of Change
Hearing the Call
Preparing to Lead to Net Zero
Startup and Staff
Create the Case for Net Zero
Assess and Build the Organization
Build Leadership Capacity to Change
Have Clear Roles
Designate an Executive Sponsor
Establish a Parallel Governance Structure
Designate a Net Zero Leader
Appoint Individual Net Zero Process Leaders
Use Experts as Needed
Align Incentive Compensation with Achieving Net Zero
Have Adequate Financial Resources to Get to Net Zero
Have a Flexible Plan
Meet People's Psychological Needs
Launching the Transformation
Summary
Chapter 13: The Three Domains of Systems Thinking
The Operations Domain
The Business Systems Domain
The Global Systems Domain
Cultivating Systems-Thinking Capacity for the Transition to Net Zero
Domains of Systems Thinking for the Pathways to Net Zero
Systems Thinking Meets Electric Vehicles and Gray Electrons
Systems Thinking and the Electric Power Sector--the Foundation to the Net Zero Economy
Systems Thinking and the Development of the Smart Grid
Systems Thinking and the Double Transformation of the Grid
Systems Thinking, Smart Grids, and Green Hydrogen
Summary
Chapter 14: Telling the Net Zero Story
Companies Need Good Data to Tell Their Net Zero Stories
The Board of Directors' Role in Telling the Net Zero Story
Investors Expect Comprehensive and Credible Net Zero Stories
The Evolution of Voluntary ESG and Climate-Related Disclosure--the Alphabet Soup
The Consolidation of Voluntary Climate-Related Disclosure into Universal Standards
The Evolution of Mandatory Climate-Related Disclosure
Telling the Net Zero Story Before the Implementation of Mandatory Climate-Related Disclosures
Other Key Roles for Disclosure Process Development
Summary
Chapter 15: Obstacles to Net Zero
Mental Obstacles
Greenwashing
Hidden Obstacles
Fossil Fuels and the Developing World
Fickle Political Support
Summary
Part V: Beyond Net Zero: Systems Change
Chapter 16: Epilogue: Toward a Net Zero Civilization
The Shift to Stakeholder Capitalism
The Infrastructure of Stakeholder Capitalism and Systems Change
Benefit Corporation Governance
MultiCapital Accounting
Doughnut Economics
Heart-Based Leadership
Conclusion
Acknowledgments
JOHN MONTGOMERY is the Founder of the Center for Global Consciousness where he provides strategic advice and executive coaching to CEOs and their executive teams. He practiced corporate law for 37 years in Silicon Valley where he founded a thriving corporate law firm, M&H LLP, and served as outside general counsel for over two dozen public companies and over 1,000 emerging growth companies. John is also the author of Great from the Start: How Conscious Corporations Attract Success.
MARK VAN CLIEAF, FRSA, is Managing Director at FutureZero, a leading consultancy advising global institutional investors, boards, and C-Suites on enterprise performance measurement, organization design, C-Suite succession planning, and executive incentive plan design aligned to business strategy and the net zero transition. He has over 35 years' experience across four continents and a broad range of industry sectors, including global energy, utilities, mining, aluminum, consumer packaged goods, industrial, technology, credit card, advertising and branding, corporate finance, mergers and acquisitions, investment banking, and institutional investors.
MARK VAN CLIEAF, FRSA, is Managing Director at FutureZero, a leading consultancy advising global institutional investors, boards, and C-Suites on enterprise performance measurement, organization design, C-Suite succession planning, and executive incentive plan design aligned to business strategy and the net zero transition. He has over 35 years' experience across four continents and a broad range of industry sectors, including global energy, utilities, mining, aluminum, consumer packaged goods, industrial, technology, credit card, advertising and branding, corporate finance, mergers and acquisitions, investment banking, and institutional investors.
