Protecting your business and the climate
How can boards prioritise economic resilience while creating a climate strategy that will have a positive impact on the environment?
Economic resilience is a core component of climate governance, but balancing short-term needs with long-term goals can be complex, says Lisa Tumahai CNZM, deputy chair of He Pou a Rangi – Climate Change Commission and former chair of Te Rūnanga o Ngāi Tahu.
Tumahai is the opening speaker at the upcoming Climate Governance Forum, hosted by the Institute of Directors’ Chapter Zero New Zealand in October.
When directors of the iwi’s businesses were first asked to incorporate climate change into their strategies, there was a certain nervousness, Tumahai says. Ngai Tahu are involved in many industries that are likely to be impacted by both climate regulation and physical changes to the climate – forestry, farming and tourism among them.
“There was pushback – a number of years ago – because it required a whole rethink and change in the way we were operating,” Tumahai says.
But as expectations were clarified and an overarching Climate Change Action Plan developed for the whole business, individual boards began to find ways to integrate climate goals into their strategies.
For example, one of the Shotover Jets (a well-known attraction) has been converted to an electric engine. Hilton Haulage has been trialling hydrogen technology.
On the flipside, climate considerations were one part of the reasoning to sell its Go Bus business.
“You have to make conscious decisions when you adopt a strategy like our one. So, we got out of the bus company – unless we had the money to convert the fleet to electricity or hydrogen, which we did not, it did not fit the tribal strategy.”
Boards need to establish realistic climate goals, develop reliable KPIs and come to grips with what is possible in their industry, Tumahai says.
“Two of those examples highlight the challenges that different industries are facing. With the Shotover Jet, it’s quite feasible to introduce electric engines. The technology exists, it’s functional, it’s affordable. With hydrogen it is a little more future-focused as opposed to something you could implement today. Boards need to look at those types of choices.”
While the Climate Change Action Plan sets a framework, Ngāi Tahu boards are required to remain focused on economic resilience and sustainability.
“We have been impacted by two earthquakes, multiple storms and, of course, always at the front of our mind is the Alpine Fault. So, economic resilience is key.”
In this context, resilience is not only about the financial stability of individual organisations, “it’s about the whole tribal economy”, Tumahai says.
The Climate Governance Forum is a one-day event featuring a range of speakers on the practical challenges and solutions of integrating climate goals into business strategy.
When: 21 October 2024
Where: The Grand Millennium, Auckland
See the full programme here.
