Companies are eager to tackle issues like the climate crisis and sustainability but don't know how to start, execs say

Several executives said US Democratic Sen. Joe Manchin's permitting-reform efforts, which have hit a wall in the Senate, are the type of changes needed to make getting projects approved easier. Markus Schreiber/AP Photo

• Executives at the World Economic Forum told Insider issues like sustainability are a priority.
• But many companies are still looking for a place to start tackling problems like the climate crisis.
• One exec called for "radical collaboration" across industries to help address the global problem. 

This article is part of Insider's weekly newsletter on sustainability. Sign up here.

The climate crisis, sustainability, and the energy transition were front of mind for many in Davos.

But according to Abby Klanecky, the chief marketing and client-services officer at the management consultant Kearney, many companies are still looking for a place to start. 

"We get the what and the why," she said, describing conversations with clients around sustainability. "But give us a practical guide for how to do this."

Put another way, "the anxiety is there, but knowing how to act is not," John Granger, the CEO of IBM Consulting, said.

The pressure is on. Hundreds of the world's largest companies have set net-zero goals without necessarily having a concrete plan for how to achieve them, executives who spoke with Insider said.

John Waldron, the chief commercial officer at Honeywell, said there would likely be increased governance around those net-zero goals, which would force companies to either comply or roll back their targets. 

And significant changes in operations are required for many, emphasizing the need to start acting sooner rather than later.

"Companies can't carbon-offset their way to net zero," Waldron said. 

Several of those who spoke with Insider highlighted the need for much-greater collaboration among companies — and a willingness to experiment. 

Granger called for "radical collaboration" across industry verticals, a point echoed by Klanecky.

"None of the problems we're talking about can be solved by one company," she said. 

Jörg Ambrosius, the chief commercial officer at the investment giant State Street, said there's a need to act now, with the knowledge that some experiments may not work. 

"We're going to give it a hard try, and if eight out of 10 things fail, that is a better outcome than not doing anything," he said. "Waiting is no option anymore."

Caroline Cox, the chief legal, governance, and external-affairs officer at BHP, the world's largest mining company, said that many of the technologies required for the energy transition hadn't arrived yet. 

She pointed to BHP's work testing different fuels in shipping, from biofuels to liquefied natural gas, as evidence of the need for experimentation. 

One dark cloud for many: the complexity of getting projects approved. Several mentioned US Democratic Sen. Joe Manchin's permitting-reform efforts, which have hit a wall in the Senate, as evidence of what's required.