“ What are the key steps and the key design elements that need to be addressed early on? For them, targets need to be clearly defined and incorporated for sustainability and financial value.”
Scenario modelling for business strategy
Anna also discusses the importance of scenario modelling in sustainability strategies, which involves analysing potential future outcomes by testing how different variables affect business performance.
She argues that scenario modelling can combat the traditional problem that conventional planning is built on historical data.
Anna says that scenario modelling is forward-looking by design, allowing capital allocation decisions across plausible futures simultaneously.
“ That has worked in a global economy or in a market context when things were stable. I think we can all agree that things are not as stable as this.“ Relying strategy on past events is designed for failure in a market like this. Scenario modelling becomes really interesting in a company’ s ability to predict different futures. This is where we have the opportunity to build in sustainability scenarios.
“ The value of agentic capability is not simply that scenarios can run more frequently – it is that conflicts between financial and sustainability targets are surfaced before they become decisions and that the model never goes stale as carbon prices, regulatory signals and technology cost curves shift.”
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