Commentary: Science-Based Goal Setting and Planning
First, what do we mean when we say science-based?
“Science-based goal setting is an approach that aligns a business' sustainability strategy with objective science. Moreover, it is a paradigm shift in the way that companies set goals as part of a new framework to create resilience in a regenerative world.”Quantis
Science-based goal setting and planning is the most complex aspect of creating a regenerative finance function. Science is dynamic, not static, and “settled” science, especially with respect to the environment and biodiversity, is not as clear as we would all like it to be. Further, although most environmental scientists believe that humankind is at least partially responsible for accelerating CO2 and CH4 (methane) emissions, there is no general scientific consensus on the degree of impact, other than it is likely material, and/or a prescriptive set of remediation policies and practices.[Note: Most often science-based goals refer to climate change––here we view science in its broader context.]
That being said, this does not mean that we do nothing. The evidence is clear that solving this, and other environmental problems, is without dispute the biggest market/societal opportunity we have ever experienced, by far. The CFO is central to this business shift, as the CFO controls the purse strings. This is the area where the CFO must team with the CSO, the Chief Sustainability Officer, and the CTO, the Chief Technology Officer. This triumvirate is the best path a business can take in order to correctly determine which science, what goals, and how to plan. So what are a few of the practical elements to adopt, operational, and execute?
Form the right initial team — internal and external — ensuring good governance
Commit on what areas to focus on — industry-specific — do not boil the ocean
Develop the specific goals/targets within your overall strategic planning process
Build these goals into your annual planning and budgeting cycle — OKRs / KPIs
Communicate the importance of these goals to all your stakeholders — the “why”
Disclose and report your progress to all stakeholders
Karen serves on the company's Executive Committee and is responsible for leading the Medtronic global finance organization and key supporting functions, including Treasury, Controller, Tax, Internal Audit, Investor Relations, Corporate Strategy, and Business Development. In late 2020, she assumed leadership of the IT and Enterprise Excellence organizations as well. In addition, Karen serves as the Executive Sponsor of the Medtronic PRIDE Employee Resource Group and Women’s Network “Commit to Connect” leadership program, which supports senior women leadership development at Medtronic.
Keep an eye out for our upcoming rCFO Podcast episode featuring Karen in conversation with moderator and host Scott Broomfield, Managing Director of the EPIC Fund and Chairperson of the INTEGRATE21 Conference.
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