The publication included case studies of companies associated with CEBDS: DSM It is Votorantim Cimentos
The Report Business Climate Resilience: Thriving Through the Transformation, that can be downloaded here, brings together important cases and the latest reflections on climate adaptation and resilience, focusing on climate resilience in the private sector. The publication highlights the need for companies to prepare for the risks associated with climate change.
“Long-term transformative scenarios need to be part of business strategies, or companies will soon become irrelevant. Companies that already have a long-term vision will be the champions of tomorrow.” Joyashree Roy, author of the IPCC, and Professor at the Asian Institute of Technology (AIT), and Economics at Jadavpur University-online.
The WBCSD has been working with the business community on climate resilience. Companies should prepare for the physical risks associated with climate change, as well as transition risks. CEBDS has published Climate Risks: how is the business sector adapting?, which shows organizations' responses to the effects of climate change on their business requires a robust risk management strategy.
Among the risks associated with climate change, we can mention physical risks, which are related to extreme climate changes, such as hurricanes, cyclones and floods. In reputational risk, the brand loses value in the eyes of its stakeholders, both due to the lack of climate risk management and due to the contribution of its activity to greenhouse gas emissions.
Due to the various threats they are exposed to, companies need to integrate climate change into their risk management processes. The ISO 31000 standard, adopted by the Brazilian Association of Technical Standards (ABNT), was created to describe in detail the systematic and logical processes of risk management, with the aim of helping organizations to carry out risk management effectively.
What can companies do to build climate resilience?
O WBCSD outlines three key steps companies can take to build climate resilience:
- Develop and maintain ambitious mitigation efforts. If a company makes progress in its mitigation efforts, it becomes less vulnerable to disruptive risks such as policy and legal measures, resource shortages, or adverse market developments.
- Adapt to ensure business continuity in the face of climate-related physical risks. Companies should assess and evaluate climate-related physical risks across their operations, supply chains, and the communities in which they operate.
- Assess the connections, dependencies and value for society and nature. The connections, dependencies and interrelationships between climate and society, climate and nature and climate and sustainable development will increase public pressure on the true purpose of business activities and the role of business in society.
Climate change at the heart of DSM’s business model
Climate change is at the heart of DSM’s business model. For the company’s CEO, Feike Sijbesma, the company cannot succeed, or call itself successful, in a failing world. For DSM, tackling climate change is not only a responsibility, but also a business opportunity and an essential part of future-proofing the business.
The company aims to: improve the carbon footprint of operations and value chains to meet the NetZero target by 2050, working to assess and protect assets and value chains from emerging climate-related physical risks; enable customers to reduce their emissions by developing low-carbon solutions and provide solutions aimed at supporting the ability of societies to adapt to the adverse effects of climate change; advocate for accelerated climate action and long-term policies, particularly renewable energy and meaningful carbon pricing, but also long-term climate-smart investments.
DSM and CEO Feike Sijbesma are actively involved in several corporate climate action networks, with DSM being associated with CEBDS. The company’s climate agenda demonstrates how companies can integrate climate action into their business strategy to increase resilience and competitiveness.
“By improving the impact of our own operations, enabling sustainable solutions for our customers and championing sustainable businesses, we can grow faster and reduce our cost and risk profile” Jeff Turner, Vice President of Sustainability, DSM.
Votorantim Cimentos and the valorization of biomass residues from açaí production
Votorantim Cimentos uses different types of fuels derived from waste and/or biomass. This action is a key factor in mitigating emissions in the sector, which accounts for around 40% of CO2 emissions in the cement process, which uses fossil fuels.
One successful example is the Açaí Project in Primavera, in the state of Pará. Communities, small farmers and suppliers collect açaí seeds that would otherwise be discarded, and after a process, the seeds arrive at the cement factory to replace part of the imported petroleum coke, the fuel used in cement kilns.
The initiative was recognized at the 14th edition of the Brazilian Environmental Award, by the American Chamber of Commerce for Brazil (AmCham). This award promotes sustainability actions and, since 2005, recognizes Brazilian organizations that have the best practices.
The process implemented by Votorantim Cimentos provides several economic and environmental benefits, such as reducing CO2 emissions, generating jobs, increasing income and including local communities. In 2018, the company used 40,000 tons of açaí seeds, which resulted in 14.3% of fossil fuel replacement and a 44,000/year reduction in CO2. The company intends to continue increasing its use to reach 30% of thermal replacement.
