We believe that some of the best net-zero opportunities exist among companies whose current emissions would exclude them from low-carbon strategies but, due to their action on achieving carbon-reduction targets, indicate that they are on viable decarbonisation pathways.
We define these transition opportunities as ‘ice cubes’ because their progress on reducing emissions is helping to cool the economy. In direct contrast, what we define as transition risks or ‘burning logs’ are the heavy emitters with no apparent plans to decarbonise. They are doing nothing to advance the transition and will likely become casualties at or on the way to net zero.
In the second episode of our new podcast series on ice cubes, burning logs and the road to net zero, Head of Sustainability Research Thomas Höhne talks to one such ice cube. Alstom's Vice President of Sustainability & CSR, Cecile Texier explains how Alstom1 is approaching the transition to net zero and the company’s plans for the future in the context of the climate transition.
Head of Sustainability Research Thomas Höhne: “At Lombard Odier we've developed a metric called implied temperature rise, where we look not only at the level of emissions of a company today, but how indeed they're expected to evolve and if they're expected to evolve in line with the objectives of the Paris Agreement.
“Now Alstom, by our assessments, is one of these ice cubes. One of these companies that does seem to be managing its emissions in line with what we would like to see in the sector. Not only that, but we would also consider Alstom an example of what we might call a solution provider, providing some of the products that might be in demand and might accelerate the climate transition across the economy.”
Alstom Vice President of Sustainability & CSR Cecile Texier: “More than 10 years ago, we started on this journey to integrate environmental, social, ethical issues in our company strategy, in the company targets, the ways we work and our daily actions.
“We started was because we were convinced that this is what was going to bring long term performance for the company. You're minimizing waste, engaging employees, external partners, building relationship with communities, managing risk, and protecting your reputation. This ultimately brings long term benefits for the company, for employees, for our customers, their passengers, and for society at large.”
To find out more about ice cubes, burning logs and the road to net zero, listen to the full episode below.
