These are certainly unprecedented times.
I was invited to speak at an event this week discussing the climate crisis and the transition to net zero. After almost two decades as SSE’s Finance Director, I had a career first and took part in my first interactive Zoom event, with 150 delegates dialling in from home.
I’d originally been asked to outline the way in which SSE is responding, strategically, to the challenge of climate change. However, the circumstances of my delivery were a reminder that all the work we are undertaking is being done so under the shadow of the unfolding coronavirus crisis, engulfing all aspects of life.
We are all still in the early days of the pandemic here and we don’t yet know the ‘end game’ for the virus – or its human, social and economic cost.
But the challenge we face, at least, is clear.
Progressive companies have been working to rebuild trust with their stakeholders and we’ve watched the rise of what’s called purpose-led business - helping reset the relationship between big business and the societies they serve.
In this current crisis, being a purposeful business, with a ‘reason-for-being’ that transcends the profit-making imperative, has never been so important.
In SSE’s case, our core purpose is to provide energy needed today while building a better world of energy for tomorrow.
That means our overriding, immediate priority is to play our part in the fight against the virus by supporting the safe and reliable supply of electricity – because the work critical to the Covid response depends on it.
We are entirely focussed on our front-line operations and keeping the lights on. We’re supporting our employees and their families - and are equally concerned for their physical and mental health. For our customers, communities and suppliers we are using well-practised methods to communicate and respond.
But while we are fulfilling the first part of our purpose – to provide energy needed today – we must not lose sight of the second – to build a better world of energy for tomorrow.
The inevitable economic downturn will mean fewer tonnes of carbon are being emitted right now, but the investments required, across the globe, to prevent far fewer tonnes being emitted in the future must continue without long term disruption.
And from a company perspective that’s exactly where we are focussed. We are a long-term business and our business strategy remains firm.
Our business has hardwired the transition to a net zero world to its core, building the assets, infrastructure and services to help achieve decarbonisation.
Expectations of investors and stakeholders have been shifting too, with a greater understanding of environmental, social and governance risks.
The truth is the more we identify, quantify and articulate social and environmental impacts, the more we manage those impacts in a way that generates value for society and for shareholders too.
Through this coronavirus crisis, there will be a lot of focus on ‘good’ companies, and we may find many of them are more resilient companies too.
And, while it is too early to be sure, and I suspect we are likely to be tested further, I believe the resilience of SSE will be greater because of these strategic steps we have taken over the past few years. At SSE, we don’t have a strategy for sustainability; we have a sustainable business strategy.
Before the virus took hold, many companies were seeking to demonstrate their own climate-credentials by setting ambitious long-term targets to reduce carbon emissions. This is welcome, but it is important that the credibility of those targets stand up to scrutiny.
That is why we will soon confirm a series of more detailed carbon targets, certified by the Science Based Target Initiative.
Despite the corona-crisis - the climate emergency remains as profound as it did two months ago.
And it is vital that we come out the other side of this pandemic focussing on the other most pressing issue for human kind.