The Presidency of the G20 Summit was recently held in Indonesia. One of the priority issues raised is the sustainability economic transition. In general, this issue is closely related to the current world climate crisis. Heads of country, whether presidents, kings, or prime ministers, become strategic policy makers to make changes for the better, including making the world more contributive to creating a better earth climate.
Leaders become figure who have great responsibility for the current condition of the earth. Its role in determining policy is an accelerating step to stop the climate crisis as soon as possible. On a smaller level, for example, company leaders or MSMEs need to respond to this condition more wisely, including developing a sustainability scheme that is oriented towards ending the climate crisis in their respective organizations.
The World Economic Forum (WEF) report in collaboration with the Boston Consulting Group (BCG) has reported, looking at current consumer preferences, leaders who carry out climate transformation in their business models will open up opportunities and benefits in several sectors. The economic context in this sense can also be collaborated at various levels, including MSMEs that need to be led by a climate leader; leaders who have an orientation to stop the climate crisis.
Climate Leaders Can Attract Great Talent
A December 2020 survey by BCG showed that around half of the total employees in its network cited the issue of “sustainability” as a reason for deciding which company they wanted to work for. A year earlier, the Accenture Chemicals Global Consumer Sustainability Survey showed that 40% of millennials chose companies to work for that had a sustainability orientation/positive contribution to the climate, and 30% of millennials chose to leave the company where they work because they don't have a sustainability plan.
Surveys above can be defined as great talents who are analytical and have global insight (especially regarding climate) considering their choices regarding their workplace and who will be their leader. To attract these talents, it is important for leaders, including at the MSME level, to voice ending the climate crisis as their organizational orientation.
Climate Leaders Influence Company Economic Growth
According to the WEF report, sales of plant-based meat substitutes rose 16 percentage points faster than sales of animal meat in the 2017–2020. In addition, globally from 2016–2019, electric vehicle sales increased by 26% annually, while conventional car sales dropped by 2% a year.
The current high public interest in climate-oriented products reflects the importance of company innovation and change to its product output. Leaders, including at the MSME level, are strongly advised to make product breakthroughs that are able to accommodate people's needs as well as being able to accelerate the ending of the climate crisis.
Climate Leaders Save Costs
Renewable energy is often identified as an expensive thing to do. However, the WEF report shows the effectiveness of using renewable energy in save company costs. Climate leaders including at the MSME level are very likely to reduce costs while cutting emissions.
BCG analysis of actual decarbonization projects shows that companies around the world are capable of realizing significant cost savings through decarbonization. To support this, it is important for climate leaders in organizations to have knowledge and strategic steps in implementing green economy mechanisms in every policy taken.
Both in the areas of talent, economic growth, and cost savings, leaders who are oriented towards ending the climate crisis support the growth of companies at a large level or MSMEs in a better and more significant direction. This context is also very close to the social responsibility that MSME leaders need to have towards the environment, including contributing more to sustainability.
