Our Power, Our Planet Reflecting on Earth Day 2025

Despite the name, it did not only last a day, in some areas, the events lasted a week. The movement was bigger than any demonstration we have witnessed over the past 5 decades, which is an important reminder of the significance of the climate crisis.

Directors are no strangers to change, whether that is driven by economic volatility, shifting regulation, or expectations of stakeholders. Business leaders often have to adapt to dynamic environments. The theme for Earth Day 2025 is “Our Power, Our Planet”, which is an important reminder that business leaders have the ability to drive change, and the responsibility to do so. The focus for this year is renewable energy; a powerful tool to drive decarbonisation whilst enhancing energy security. The world needs strong leadership, from business leaders and politicians, working together to deliver the agenda our planet needs.

We need to remember that renewable energy does not and will not solve the climate crisis. The problem is fuelled by overconsumption. Our first port of call when addressing the climate crisis should be addressing efficiency. We need to improve efficiency whilst shifting our energy system to renewable. Every year, graphics show our resource consumption based on the number of Earths we need to sustain life. We always overshoot and we always use more resource than our planet can provide to maintain our stable climate.

Why it matters?

The transition to renewable is not only critical for the environment; it is critical for business continuity. Business leaders must navigate the surroundings and act accordingly to unlock opportunities and mitigate risks. Failing to adapt may lead to financial and reputational risks, limiting the ability to compete. Although businesses may be able to manage without addressing climate related risks today, scrutiny from stakeholders will continue to intensify and navigating the business landscape will become almost impossible.

Businesses taking a proactive approach in embedding sustainable practices into their strategy and operations, including the adoption of renewable energy, may unlock benefits in terms of attracting top talent or investment, whilst opening up access to new markets and driving innovation in a world that is demanding more sustainable products and services. Businesses and consumers want to buy responsible goods, but they also now want to ensure the businesses they buy from operate in a sustainable manner.

How businesses adapt?

When it comes to adopting better practices around sustainability, energy in particular, it can often be hard to know where to start. It can often be overwhelming, as many businesses operate within a complex supply chain and influencing another organisation within the supply chain can be challenging. Addressing renewable energy, a business can first focus on its own operations and how energy is consumed. Then it can assess how energy is consumed throughout its supply chain. Here are three practical steps:

1.Understand your energy profile.

First, a business needs to understand its energy profile across its own operations and within its supply chain. How much energy do we use? How do we use it? What type of energy do we use? Where does it come from? Understanding this will enable better decision-making.

It provides insight into where improvements can be found. You may be thinking a board shouldn’t be talking about this, it should be the responsibility of someone or a team within the organisation to assess this. This may be correct, but to make change in any organisation, there must be board buy-in. Without it, projects or initiatives are destined to fail. Ensuring board buy-in will more likely lead to the success of change.

2.Integrate with your business strategy.

Second, energy needs to be integrated into strategic planning. It needs to be included in the wider procurement strategy and it needs to be analysed through various lenses to determine the best approach for the organisation. Whether this be through onsite renewable generation, power purchase agreements or the purchase of energy linked to a recognised certification scheme. Understanding the best approach to unlock the most opportunities is why the board must remain involved.

3.Use it to drive business innovation.

Finally, in a broader sense, the organisation needs to position itself to drive innovation and enhance the uptake of technologies, whether that be forms of hydrogen, battery storage, or smart technologies. Considering whether the business can influence and support other stakeholders, whether that be customers or suppliers, shows leadership and intention of the business. This positioning turns the approach from a traditional, reactive model to a proactive one, building operational resilience in a decarbonised world.

The shift to a low carbon world must be a fair one. There are particular communities and individuals that are more vulnerable to the global energy transition than others. Acting responsibility is the role of a director, and they must ensure a fair and equitable transition, through the supporting of upskilling, training and promoting of jobs that create a cleaner future.

Institute of Directors

The Institute of Directors is committed to equipping business leaders with the knowledge and solutions to thrive in a dynamic world. Through the IOD’s Sustainability Group and wider network, we’re helping to bring the conversation around climate and sustainability to the board room.

This Earth Day, we encourage everyone to reflect on the theme “Our Power, Our Planet”. Ask yourself, what does power mean to us? Our power lies in our influence, our decisions, and our ability to mould the businesses we lead. Our future lies in the decisions we make today.