The COVID-19 pandemic and climate change are causing the loss of millions of lives and severe damage to the economy. In this context, only companies that embrace resilience will survive, according to the nexos+1 platform.
The pandemic generated by COVID-19 and climate change are two of the greatest challenges we face today, and the ones that have the greatest impact on our economy. Thus, at the end of last year, world GDP fell by -4.2%, according to the Organization for Economic Cooperation and Development.
In this context, it is vital for companies to embrace resilience - understood as the ability to withstand, learn, adapt, transform and recover in a timely and effective manner-to turn risks into business opportunities with positive impact. According to the World Bank, a transition to resilient, low-carbon economies could create more than 65 million jobs by 2030.
But how can Peruvian companies become resilient? Here, nexos+1, a platform that promotes climate action in the private sector in Latin America, explains the 3 essential steps to achieve this:
1. Knowing the context and adapting
For companies to reinvent themselves, risk management is crucial. For example, in countries like ours, natural disasters cost approximately US$18 billion a year in damages to transportation and energy generation infrastructure. However, these risks are also opportunities. According to the World Bank, investing in resilient infrastructure can translate into up to USD 4.2 trillion in benefits over the lifetime of the new infrastructure.
2. Define our purpose
Do we have a goal beyond money? Purpose-driven companies are those that seek more than a lucrative profit. We can find important examples in Sistema B, an organization that brings together companies that measure their social and environmental impact and make decisions considering the consequences. These companies are more resilient in times of crisis, have a higher level of talent attraction and retention and, above all, are being recognized by governments and consumers.
3. Adopt collaborative leadership
Establishing new alliances within and between the public and private sectors, forming new partnerships in our communities, and creating new leadership platforms are some of the World Economic Forum's recommendations. One example of what this can achieve is the Alliance of Leading Climate CEOs, a group of CEOs from companies with combined revenues of more than $1.5 trillion, which has already reduced their collective carbon emissions by 9 % from 2015 to today.
