Entering our final term of teaching on the Cambridge MBA, I look back at the exciting opportunity I was given to work with a team of MBA students on a project with Inditex, as part of the Global Consulting Project (GCP) at Cambridge Judge Business School.
The project involved understanding Internal Carbon Pricing (ICP) models, analysing how other organisations have integrated this practice, and devising a strategy for how to best implement at the leading fashion company Inditex. (Known for brands including ZARA SA, Massimo Dutti & Bershka) Myself and the MBA team advised Inditex on the current best practices associated with implementing an internal carbon price, and then delivered a detailed, phased approach that takes into consideration the unique intricacies of its business model.
Internal Carbon Pricing is a voluntary practice that allows companies to price the externality costs of emitting one extra tonne of carbon into the atmosphere into their business operations and investments. As public sentiment towards reducing carbon emissions grows (Exemplified by the COP26 outcomes and the SBTi’s Net Zero targets), and external carbon markets (E.g., EU ETS) become more prominent in leading economies, companies around the world are faced with significant additional reputational and regulatory risk if they are not to act, despite it just being the right thing to do!
On a personal level, this project gave me a chance to experience working in the sustainability sector (a personal career goal of mine) and gain a better understanding for how companies are approaching the climate risk that is affecting the world at present. I am extremely grateful to the team at Inditex (Fernando, Gorka, Jose & Luiz) for providing us with access to all areas of the business and also for giving us the opportunity to experience life in Coruna, Spain.
I would also like to take the opportunity to thank the Cambridge MBA team, Rishika Daryanani, Takahiro Kuroda, Wanphassorn Ratanavijai, I worked with for their unique perspectives, friendly manners, and hard work throughout the project. I’m looking forward to my next opportunity in the sustainability space.