Climate action can be simple!, By Donald Amaeshi

…effective climate action may be more pervasive than commonly assumed or officially reported. These practical decisions also have ripple effects that extend beyond immediate business benefits, creating unexpected opportunities in Nigeria’s economy. Consider this: employees saving on commuting costs will increase disposable income, equating to improved debt-to-income (DTI) ratios. This enhanced creditworthiness presents a unique opportunity for financial institutions.

Climate action, decarbonising our energy systems, environmental sustainability, planetary governance and other sophisticated vocabulary in use in climate change conversations have a way of leaving the average person feeling helpless, as if there is no role for them in the race to save our planet from imminent collapse – if nothing is done. This is further complicated by a significant focus on industries often labelled as major polluters — oil and gas, mining, agriculture, and others.

Increasingly, a common argument against climate action (or effort to address climate change and its impacts) in business narratives — especially in the Small and Medium Enterprises (SMEs) space — is that such initiatives are too expensive. Another perspective is implementing climate actions requires a dedicated team of internal experts or external consultants. However, are these concerns factual or exaggerated? Is climate action truly this complex, or is there a more practical and commonsensical approach?

Let’s explore these questions by using two business practices implemented by Nigerian SMEs in their bids to cut operating costs.

The first example involves a medium-sized firm switching from paper-based to digital hiring processes — a straightforward cost-cutting measure in response to rising operational expenses. The HR team reports notable savings two years after implementation: reduced paper usage, decreased storage needs, and improved process efficiency. Beyond the savings on paper, they also reduced logistics costs related to paper procurement and delivery. In a country like Nigeria, where paper recycling infrastructure is limited, this cost-saving measure has unexpectedly contributed to climate action by reducing the demand for paper.

The second business practice from a firm based in Lagos, where gruelling traffic congestion is an integral part of daily life, is its work-from-home policy. This policy requires confirmed staff — employees who have successfully completed the probationary period — to come to the office only three days a week. This pragmatic decision was designed to reduce commuting costs as part of a motivation and retention strategy in a challenging economic situation. The result? Staff transport expenses dropped by 40 per cent, and reduced carbon emissions by its workforce as a result of decreased commutes to work. In addition, for Lagosians, who are accustomed to an average daily commute of four hours, this arrangement also improves their quality of life.

These cases — one about digitalisation, the other about flexible working — highlight the novelty of some unassuming business decisions. As organisations face increasing pressure for environmental responsibility, these examples show that effective climate action can stem from practical, cost-effective business choices. In other words, climate action is not all about sophisticated innovations.

…the flexible working arrangement shows how addressing practical concerns can yield environmental benefits. The company’s HR leadership was not aiming for climate action but rather sought ways to retain and motivate staff within budget constraints. The company’s work-from-home policy not only met these objectives but also helped reduce Lagos’ traffic congestion — a clear case of minor changes adding to significant environmental benefits.

In fact, a broader pattern is emerging across Nigerian organisations: while sustainability departments may champion climate action, impactful climate-friendly practices often arise from unexpected sources — managers simply aiming to improve budget efficiency or streamline operations. These unintentional environmentalists or accidental climate heroes, focused on practical gains, sometimes achieve greater environmental impact than planned climate actions, which can occasionally come across as greenwashing.

Consider the paperless hiring process case again. The manager who led this change had no climate agenda; he focused on operational efficiency and cost savings. However, in Nigeria’s context, where recycling options are scarce, this decision has had a meaningful environmental impact. The firm lowered storage needs and physical waste generation by reducing paper usage, aligning unintentionally with climate action goals. Less demand for paper reduces pressure on forests, allowing them to continue their essential work of absorbing carbon dioxide from the atmosphere.

Similarly, the flexible working arrangement shows how addressing practical concerns can yield environmental benefits. The company’s HR leadership was not aiming for climate action but rather sought ways to retain and motivate staff within budget constraints. The company’s work-from-home policy not only met these objectives but also helped reduce Lagos’ traffic congestion — a clear case of minor changes adding to significant environmental benefits.

These examples point to a valuable lesson from Nigerian organisations: effective climate action may be more pervasive than commonly assumed or officially reported. These practical decisions also have ripple effects that extend beyond immediate business benefits, creating unexpected opportunities in Nigeria’s economy. Consider this: employees saving on commuting costs will increase disposable income, equating to improved debt-to-income (DTI) ratios. This enhanced creditworthiness presents a unique opportunity for financial institutions.

Banks can target organisations with work-from-home policies as a promising market for green energy financing. With monthly transport savings potentially covering green product loan repayments, these employees represent a lower-risk segment for green financing portfolios.

Financial institutions could partner with employers to offer preferential rates on green energy products, creating a quadruple win: banks expand their green portfolios, employers leverage this as an employee value proposition, employees access sustainable energy solutions, and the increasing chokehold on planetary health is reduced.

…the reality is that many of us may already be contributing to climate action unknowingly. Our daily decisions to cut costs, boost efficiency, or improve workplace conditions can often result in unintended environmental benefits.

The significance of these examples lies in their ordinariness. Climate action doesn’t always require overcomplicated process reengineering, specialised expertise, or large investments. Often, the most impactful environmental initiatives are simple, logical decisions to improve efficiency or reduce costs.

Building on these unintentional successes, Nigerian organisations might consider routinely assessing their operational practices to identify similar opportunities. This perspective should encourage organisations that view climate action as costly or complex to rethink their organisational processes and see where there can be wins for planetary health.

In conclusion, the reality is that many of us may already be contributing to climate action unknowingly. Our daily decisions to cut costs, boost efficiency, or improve workplace conditions can often result in unintended environmental benefits.

Recognising and documenting these accidental climate actions can reduce the perceived tension between cost-consciousness and climate responsibility, making environmental sustainability more achievable and seamless in the Nigerian context.

In other words, climate action can be simple!

Donald Amaeshi is a PhD candidate at the Graduate School of Business, University of Cape Town, South Africa. He is studying how middle managers in emerging markets translate climate action strategy to practice.