Decarbonization: Key to a sustainable future in Mexico

Sustainability as a Strategic Axis

Sustainability has ceased to be just a complement; it is now a strategic axis of the business. Reducing greenhouse gas emissions requires a comprehensive approach that covers different sectors, a clear understanding of the business and a systemic vision.

The increase in global temperature has already exceeded 1°C since the pre-industrial era, with obvious consequences: extreme weather events, loss of biodiversity and critical alterations in terrestrial systems. According to the World Economic Forum's Global Risks Report 2024, seven of the top ten risks to humanity are related to environmental and social issues.

Pressures and challenges for organizations

Organizations face multiple pressures, such as:

• Adapt to the global context and anticipate regulations.
• Manage incremental resource and waste costs
• Improve the relationship with users and meet shareholder demands.
• Increase employee engagement.

On the path to sustainable business models, organizations must overcome challenges such as the lack of clear guidelines and the disconnect between sustainability and business. Integrating sustainability into the core strategy is crucial to moving forward.

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Key elements for a decarbonization strategy

Governance and Organizational Structure

Decarbonization requires deep organizational transformation, with robust governance and a committed team.

• Have clear and responsible formal corporate policies.
• Align internal decisions with environmental and business objectives.

Innovation and Technology

Emerging technologies can accelerate decarbonization efforts, but they must align with the specific needs of each organization.

• Adjust expectations based on the expected return on investment.
• Evaluate the space to fail and the patience to achieve results.

Circularity and efficient use of resources

From the acquisition of resources to the end of life of products, circular strategies optimize life cycles, reduce costs and generate new sources of income.

• Reduce operating costs and increase resource efficiency.
• Improve corporate reputation and strengthen relationships with stakeholders.

Collaboration and Alliances

Cooperation with governments, companies, NGOs and civil society is essential to advance decarbonization.

• Generate strategic alliances and participate in collective initiatives.
• Integrate different actors to enhance impact.

Regulation and public policies

Public policies are key to facilitating climate action and creating competitive advantages.

• Adapt to regulations and take advantage of tax incentives.
• Anticipate regulations to promote innovation and sustainable growth.

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Decarbonization is a challenging but essential path. A clear strategy, effective governance, technological innovation, efficient use of resources, collaboration and appropriate public policies are essential to address climate change.

Integrating sustainable practices into the operational core of organizations transforms the challenge of decarbonization into an opportunity for sustainable growth and long-term prosperity.

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