Net Zero Business Models

Net Zero Business Models

by John Montgomery, Mark Van Clieaf
Released February 2023
Publisher(s): Wiley
ISBN: 9781119895060

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Book description

Future-proof your business with a credible net-zero transition plan for the new economy.

Net Zero Business Models: Winning in the Global Net Zero Economy delivers a breakthrough approach to transition from business models contributing to climate disaster to Net Zero Business Models crucial to sustainability and profitability.

Based on the authors' business advisory expertise and insights from their research with over 200 best-in-class global companies, this book is an indispensable guide for executives, corporate directors, and institutional investors.

Discover how to implement a bona fide net zero transition plan and processes to:

  • Identify new Board and Investor expectations for Net Zero Transition Plans (Beyond ESG)
  • Ensure the Five eco-efficiency plans, processes and value drivers are in place as the foundation for a credible transition plan
  • Select one of Four Pathways to a Net Zero Business Model as strategic options
  • Apply the Three Domains for Systems Thinking required by leaders for Net Zero strategic leadership
  • Align key metrics, targets, and incentive designs to accelerate business model transition

Metrics and Targets are not a plan, and a commitment to net zero is not a business strategy. Net Zero Business Models has been endorsed by C-Suites, Boards and Institutional Investors representing over $ 80 trillion in assets under management. This is the playbook you need to win in the Net Zero Global Economy.

Table of contents

  1. Cover
  2. Additional Praise for Net Zero Business Models
  3. Title Page
  4. Copyright
  5. List of Exhibits
  6. List of Appendices
  7. Prologue
    1. NOTES
  8. Foreword
  9. Preface
  10. INTRODUCTION: HOW TO USE THIS BOOK
    1. PART I: SETTING THE CONTEXT FOR NET ZERO
    2. PART II: THE TECHNICAL FOUNDATIONS OF NET ZERO BUSINESS MODELS
    3. PART III: THE FOUR PATHWAYS TO NET ZERO
    4. PART IV: IMPLEMENTING A PATHWAY TO NET ZERO
    5. PART V BEYOND NET ZERO: SYSTEMS CHANGE
    6. NOTES
  11. Part I: Setting the Context for Net Zero
    1. 1 THE NET ZERO OPPORTUNITY
      1. THE TRANSFORMATIONAL FORCES OF NET ZERO
      2. MANAGING THE TRANSFORMATIONAL FORCES OF NET ZERO IN A VUCA WORLD
      3. WHAT DOES “NET ZERO” MEAN?
      4. GOING BEYOND NET ZERO
      5. WHAT DOES THE TRANSITION TO A NET ZERO ECONOMY LOOK LIKE?
      6. THE NET ZERO OPPORTUNITY
      7. SUMMARY: WHERE TO BEGIN
      8. NOTES
  12. Part II: The Technical Foundations of Net Zero Business Models
    1. 2 AN OVERVIEW OF GREENHOUSE GAS EMISSIONS
      1. WHAT ARE SCOPE 1, 2, AND 3 EMISSIONS?
      2. DEVELOPING A GHG EMISSIONS DATA STRATEGY
      3. WHAT ARE SCOPE 1 EMISSIONS?
      4. WHAT ARE SCOPE 2 EMISSIONS?
      5. WHAT ARE SCOPE 3 EMISSIONS?
      6. SUMMARY: GETTING STARTED
      7. NOTES
    2. 3 APPLYING A CARBON SHOCK TEST
      1. THE $20 TRILLION PROBLEM
      2. SOME CONTEXT FOR A CARBON TAX
      3. SCENARIO PLANNING FOR CARBON TAXES
      4. SUMMARY: HAVE GOOD PROCESSES
      5. NOTES
    3. 4 SCIENCE‐BASED EMISSIONS‐REDUCTION TARGETS
      1. THE FOUR OBJECTIVES OF THE NET ZERO STANDARD
      2. GENERALLY ACCEPTED GHG ACCOUNTING AND REPORTING PRINCIPLES
      3. FIVE STEPS TO SET SCIENCE‐BASED TARGETS
      4. SCIENCE‐BASED TARGETS UNIQUE TO THE POWER SECTOR
      5. SCIENCE‐BASED TARGETS UNIQUE TO THE FOREST, LAND, AND AGRICULTURE (FLAG) SECTOR
      6. UPDATING AND COMMUNICATING TARGETS
      7. THE VALIDATION PROCESS
      8. SUMMARY: SCIENCE‐BASED TARGETS ARE NOT A TRANSITION PLAN
      9. NOTES
  13. Part III: The Four Pathways to Net Zero
    1. 5 THE FOUR PATHWAYS TO NET ZERO: AN INTRODUCTION
      1. ECO‐EFFICIENCY PROCESSES AND SYSTEMS
      2. SUMMARY
      3. NOTES
    2. 6 PATHWAY ONE: ECO‐EFFICIENCY
      1. PATHWAY ONE: COMPANIES WITH LOW CARBON INTENSITY BUSINESS MODELS
      2. PATHWAY ONE: COMPANIES WITH HIGH CARBON INTENSITY BUSINESS MODELS
      3. CHARACTERISTICS OF PATHWAY ONE
      4. PATHWAY ONE RISK FACTORS
      5. CRITICAL SUCCESS FACTORS FOR PATHWAY ONE COMPANIES
      6. SUMMARY
      7. NOTES
    3. 7 PATHWAY TWO, OPTION ONE: INCREMENTAL TRANSFORMATION OF THE BUSINESS MODEL—ZERO‐CARBON PRODUCTS AND SERVICES
      1. RE‐ENGINEERING WITH A FOCUS ON ZERO‐CARBON PRODUCTS AND SERVICES
      2. NET ZERO TRANSFORMATION STRATEGIES AND TRANSITION PLANS
      3. COMPLETE TRANSFORMATION OF THE EXISTING PRODUCT AND SERVICES PORTFOLIO TO ZERO CARBON
      4. SUMMARY
      5. NOTES
    4. 8 PATHWAY TWO, OPTION TWO: COMPLETE TRANSFORMATION OF THE BUSINESS MODEL
      1. COMPLETE TRANSFORMATION OF THE BUSINESS MODEL
      2. CHARACTERISTICS OF PATHWAY TWO
      3. PATHWAY TWO RISK FACTORS
      4. CRITICAL SUCCESS FACTORS FOR PATHWAY TWO COMPANIES
      5. SUMMARY
      6. NOTES
    5. 9 PATHWAY THREE: ECO‐STARTUPS, NEW VENTURES, SPINOUTS, AND INDUSTRY DISRUPTORS
      1. CLIMATE TECHNOLOGY AND ECO‐STARTUPS
      2. INNOVATION AND INDUSTRY DISRUPTORS
      3. ABOUT DISRUPTION
      4. THE DISRUPTION OPPORTUNITY MATRIX
      5. INCREMENTAL INNOVATION VERSUS EXPONENTIAL INNOVATION
      6. CHARACTERISTICS OF PATHWAY THREE
      7. PATHWAY THREE RISK FACTORS
      8. CRITICAL SUCCESS FACTORS FOR PATHWAY THREE COMPANIES
      9. SUMMARY
      10. NOTES
    6. 10 PATHWAY FOUR: INDUSTRY ECOSYSTEM(S) TRANSFORMERS
      1. THE FOUR STAGES OF INDUSTRY ECOSYSTEM(S) TRANSFORMATION
      2. THE TRANSFORMATION OF THE AUTOMOBILE INDUSTRY
      3. TESLA THE DISRUPTOR
      4. TESLA: A PATHWAY FOUR INDUSTRY ECO‐SYSTEM(S) TRANSFORMATION LEADER
      5. THE RISE OF ELECTRIC VEHICLES
      6. TESLA'S BUSINESS MODEL
      7. CHARACTERISTICS OF PATHWAY FOUR
      8. PATHWAY FOUR RISK FACTORS
      9. CRITICAL SUCCESS FACTORS FOR LEADING AN INDUSTRY TRANSFORMATION
      10. SUMMARY
      11. NOTES
  14. Part IV: Implementing a Pathway to Net Zero
    1. 11 A FOUNDATIONAL FRAMEWORK TO CHOOSE A PATHWAY
      1. THE INNOVATION AND RETURN ON CAPITAL LIFE CYCLE
      2. HOW THE INNOVATION AND RETURN ON CAPITAL LIFE CYCLE EFFECTS VALUATION
      3. THE FOUR DOMAINS OF CARBON INTENSITY, THE INNOVATION AND RETURN ON CAPITAL LIFE CYCLE, AND VALUATION
      4. SUMMARY: HAVE GOOD PROCESSES TO PRESERVE AND GROW SHAREHOLDER VALUE
      5. NOTES
    2. 12 PREPARING TO LEAD THE TRANSFORMATION: KEY ELEMENTS OF SUCCESSFUL TRANSFORMATIONS
      1. THE THREE TYPES OF CHANGE
      2. HEARING THE CALL
      3. PREPARING TO LEAD TO NET ZERO
      4. LAUNCHING THE TRANSFORMATION
      5. SUMMARY
      6. NOTES
    3. 13 THE THREE DOMAINS OF SYSTEMS THINKING
      1. THE OPERATIONS DOMAIN
      2. THE BUSINESS SYSTEMS DOMAIN
      3. THE GLOBAL SYSTEMS DOMAIN
      4. CULTIVATING SYSTEMS‐THINKING CAPACITY FOR THE TRANSITION TO NET ZERO
      5. DOMAINS OF SYSTEMS THINKING FOR THE PATHWAYS TO NET ZERO
      6. SUMMARY
      7. NOTES
    4. 14 TELLING THE NET ZERO STORY
      1. COMPANIES NEED GOOD DATA TO TELL THEIR NET ZERO STORIES
      2. THE EVOLUTION OF VOLUNTARY ESG AND CLIMATE‐RELATED DISCLOSURE—THE ALPHABET SOUP
      3. THE CONSOLIDATION OF VOLUNTARY CLIMATE‐RELATED DISCLOSURE INTO UNIVERSAL STANDARDS
      4. THE EVOLUTION OF MANDATORY CLIMATE‐RELATED DISCLOSURE
      5. TELLING THE NET ZERO STORY BEFORE THE IMPLEMENTATION OF MANDATORY CLIMATE‐RELATED DISCLOSURES
      6. OTHER KEY ROLES FOR DISCLOSURE PROCESS DEVELOPMENT
      7. SUMMARY
      8. NOTES
    5. 15 OBSTACLES TO NET ZERO
      1. MENTAL OBSTACLES
      2. GREENWASHING
      3. HIDDEN OBSTACLES
      4. FOSSIL FUELS AND THE DEVELOPING WORLD
      5. FICKLE POLITICAL SUPPORT
      6. SUMMARY
      7. NOTES
  15. Part V: Beyond Net Zero: Systems Change
    1. 16 EPILOGUE: TOWARD A NET ZERO CIVILIZATION
      1. THE SHIFT TO STAKEHOLDER CAPITALISM
      2. THE INFRASTRUCTURE OF STAKEHOLDER CAPITALISM AND SYSTEMS CHANGE
      3. BENEFIT CORPORATION GOVERNANCE
      4. MULTICAPITAL ACCOUNTING
      5. DOUGHNUT ECONOMICS
      6. HEART‐BASED LEADERSHIP
      7. CONCLUSION
      8. NOTES
  16. Appendices
  17. Acknowledgments
    1. NOTE
  18. Index
  19. End User License Agreement

Product information

  • Title: Net Zero Business Models
  • Author(s): John Montgomery, Mark Van Clieaf
  • Release date: February 2023
  • Publisher(s): Wiley
  • ISBN: 9781119895060