The Business of Phasing Down and Out of Fossil Fuels
Fall 2023 Impact Brief at the Nexus of Sustainability and Business Strategy
I am certain we all agree - the climate crisis is the defining challenge of our times, as we reach many climate tipping points. The business world finds itself at the crossroads of transformation, and a restructuring of thinking about what it is to be a 'good business'. But we can not talk about good business or how our future looks without talking about the crux of this change which we know hinges on an essential pivot: the phasing out of fossil fuels. Most recently we have witnessed everyone from Climate Activists, to the UN, to leading Companies such as Ikea, Heineken, Bayer, Unilever and many others, calling for an end to fossil fuels, and a reality check at the upcoming #COP28.
But lets roll back a second - what is it that we are actually talking about? We know (although some still want to deny it) Fossil Fuel causes everything from massive GHG emissions, air pollution, water pollution, land pollution, and much more. Ultimately being a key ingredient to the climate crisis we now find ourselves in. But what is the fossil fuel phase out? The fossil fuel phase-out suggests a gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition.
Why is this transition so pivotal? The reasons stretch beyond the immediate environmental imperative. Abandoning fossil fuels means grappling with a vast economic overhaul. Think of new market frontiers that promise innovative products, cutting-edge technologies that could redefine sectors, and a reshuffling of job markets that might see some roles becoming obsolete while others, previously unimagined, emerge. The alternatives are grim.
"By phasing out fossil fuels, we will make way for all the climate solutions such as wind and solar that are now the cheapest forms of electricity in history. Communities and individuals can all benefit from the transition to renewable power.” - David Suzuki
It's not just about carbon. It's about the revamping of supply chains, aligning with new policies, and reshaping business strategies to align with a net-zero future. It's about the reinvention of the global economy as we know it - its true industrial transformation. Its not just the major fossil fuel producers but also any company that has or wants to full embrace the path to Net Zero or decarbonization, governments who have made similar commitments but who also are needed by the business community to support this transition with smart policy, standards and regulations. The fossil fuel transition has to be seen and approached as a massive systems change in business, government, and life. The change can be monumental, but not impossible.
Forty some years ago, the idea of the internet was met with skepticism, and many considered it to be nothing short of impossible. Back then, the concept of a global network connecting people, businesses, and information seamlessly seemed like science fiction. Yet look at us today, from all over the world reading newsletters on Linkedin. While a phase out (even a phase down) can seem outlandish, we should consider what we want our future to look like. Not the future in a year but in a decade or two or three. In the pursuit of sustainability, tangible solutions, and facing the climate crisis, it is essential to embrace systems change approaches. Just as the internet once seemed unattainable, the transition to a world less dependent on fossil fuels may hold immense potential that we are only beginning to comprehend.
And of course the road to this future is uncertain and riddled with challenges, and yes opposition. Major fossil fuel producers and stakeholders, witnessing some of the highest profits in history, are gearing up for a fight. Their deeply entrenched interests, backed by decades of economic dominance, pose a formidable resistance to change.
“We know that phasing out fossil fuels is the only way forward if we are to limit global warming and keep people safe from climate catastrophe.” - Volvo global head of sustainability Anders Kärrberg.
Yet, while challenges abound, so do opportunities. Pioneering businesses stand to gain from this transition. Those who are agile, innovative, and unafraid to embrace this change will discover paths to growth, resilience, and profound societal impact. The world is watching and waiting, and the stakes are high. We will see what will play out at #COP28 in Dubai next month. But whatever your own experience and your own dependence on fossil fuels, you have to ask yourself an important question.
How can our organization balance its historical reliance on fossil fuels with the imperative to contribute to a more sustainable climate future?
Companies Making Moves
Coca Cola launches the new rPET bottle
Crocs jump on the Reuse Strategy
Shell Set on Cutting Jobs from Low Carbon Division
Apple, Nike Launch Initiative to Accelerate to Adoption of Clean Energy Supply Chains
In the News
Should Lobbying be Included in ESG?
Greenpeace Canada Files Regulatory Complaint Over Suncor Climate Disclosures
Capital Compass Launched in BC
The Insurance World is Flirting with its Climate Doom Loop
Green Financing Surges to More than 2.6 Trillion at Top Banks
Great (Longer) Reads
If you are eager to grab a coffee and dive into some of the best thought provoking pieces in the past several weeks - we have got you covered from psychotheraphy to geography.
Al Gore on His Lifelong Advocacy for the Environment - The New Yorker
Climate Anxiety: How the Climate Crisis is Changing the Practice of Psychotherapy - New York Times
Sustainability is not just about how consumer choices, but Also Investment Choices - The Atlantic
How Brands Can Sell to Environmentally Conscious Consumers - Harvard Business Review
The Idea to Move Millions to New Climate Havens - Noema Magazine
How Carbon Offsets are Supposed to Work - Carbon Brief
Is/Isn't: Climate Action in Canada - Doctors Climate Change
The Father of Environmental Injustice Exposes the Geography of Injustice - Scientific American