Jeff Waller
Senior Director, Head of Sustainable Finance
Sustainability Transformation
Decarbonization
Climate Change
Companies are setting ambitious decarbonization targets. The challenge for most is to align their financing models with their sustainability goals. This is because conventional financing models fall short and make it difficult to find the necessary funds for sustainability strategies.
Strict investment criteria, limited internal budgets and strict payback periods prevent companies from implementing their sustainability transformation at the scale and speed they need to. However, these are necessary for achieving net-zero goals. The solution: companies need to rethink how they allocate capital. It's time, especially given the scale of the goals, for companies to reassess their financing structures to mobilize capital faster and find new ways to balance risks and rewards.
Using New Financing Models to Drive Action
While small changes and successes on the decarbonization journey can encourage CFOs, switching to LED light bulbs cannot be scaled indefinitely. To bring about substantial change, critical processes must be redesigned and key assets replaced, wherein the true scale of the financial challenge becomes clear. The following three steps will help companies achieve a sustainable financial strategy to reach net zero.