200 - The Impact of Personal Experiences on Leadership with Global Network for Zero's Sarah Merricks

Welcome to Listening with Leaders. I'm Doug Noll, lawyer turned peacemaker. I teach executive leaders how to listen to emotions rather than words so that they can become the leaders everyone wants to follow. And I teach those same leaders how to be authentically present, available, and connected to their families despite being insanely busy. I have learned that we are 98% emotional and only 2% rational. Learning how to listen to emotions is, in my experience, the foundational skill of life. Stick around to the end of the show and I'll reveal how you can be on our next guest in 15 to 20 minutes. So let's get started. CRMX, welcome to Listening with Leaders. You are the Chief Strategy Officer for an organization called the Global Network for Zero. Which can be found at globalnetworkforzero.com. And welcome to the show.

Thank you so much for having me.

So let's start a little bit with your backstory, who you are and what you do, and a little bit about the company you work for, and then we'll kind of dive into your leadership stuff.

Okay.

So who are you? What's your background?

My name is Sarah Merricks. I am Chief Strategy Officer for Global Network for Zero. We are the world's premier net zero certification body, and we provide net zero certification for buildings, portfolios, businesses, cities, products, processes, and more. And GNFC was founded by me and my co-founders, who we have spent about 10 or more years previously working together before. In December 2021, after about 10 years working in the kind of environmental field, to eliminate the barriers that we saw in buildings being able to decarbonize. So it was founded to break down those barriers, but we've also expanded to offer other certifications for businesses in addition. And we kind of spent about 10 years previously working together at the US Green Building Council, which is the organization that runs the LEED certification process. So our background is really in decarbonizing buildings around the world.

And what's your role as the Chief Strategy Officer?

So as Chief Strategy Officer, I am responsible for the day-to-day kind of operations of the company, but also in kind of setting our overall strategy in leading our marketing efforts and kind of our story, storytelling efforts, our thought leadership efforts, and just kind of setting the general strategy for leading the organization forward, which is something that I also had a background at USGBC. I was our CEO's Chief of Staff. He's also our co-founder and CEO at GNFC. I partnered together with him for about 10 years, kind of doing similar stuff, helping set the strategy for USGBC with him.

So why is there a need for a certification for net zero?

Yeah, that's a great question. So certification has really, you know, traditionally been a great tool, you know, when it comes to buildings. For, you know, providing the independent third-party validation that a building is green, where, you know, we see issues. There's a lot of greenwashing happening right now. So certification, you know, is a wonderful tool for combating that, for demonstrating, you know, from a verified independent body that what you say you've done when it comes to sustainability, you know, is proven and true. For net zero in particular, it is really critical right now. We see a lot of companies kind of around the globe who are setting commitments, who either can't meet them, or despite whether, you know, like whether they have good intentions or not, they don't necessarily know how to get there. And sometimes they're doing things like achieving net zero across their scope, scope 1 and 2 emissions, which is, you know, a small portion of their overall emissions. But they're kind of neglecting their scope 3, not including it in their reporting, and in their commitments. And scope 3 is, you know, the value chain emissions of a company. So that represents more than 70% of where their emissions are coming from. So net zero certification is really critical to kind of addressing that. But also, you know, at this point, the world is warming at a rate that we never really thought possible, even as recently as a few years ago. And the bottom line is that emissions really have to come way, way down in order to meet the Paris Agreement targets. So certification, you know, is a wonderful tool for organizations who are looking to demonstrate, you know, that their role in helping us get there. So yeah, certification is a great tool.

How are you guys funded?

So we're funded by, you know, some kind of seed money from private funders, but then We are a purpose-driven for-profit. So we also, you know, are run by certification fees. So companies do pay to go through the certification process.

This, it strikes me, you know, with the SEC now requiring publicly traded companies to report on the effects of climate change on their financial operations, that maybe having this kind of certification is something that goes into an annual report so that shareholders know that there is, it's not, as you say, greenwashing. There's some, there is some validity behind the efforts that a company is undertaking to, to go to net zero. Is that what you're finding?

Yeah, I would say with the SEC ruling too, it was, you know, critical to note that Scope 3 wasn't included in the final definition that went to the vote on March 6th. And then also the vote is now, I think, in an administrative stay. So I'm not really sure how it will move forward. But one, you know, we really stress that Scope 3 is really critical, like kind of neglecting Scope 3 and not accounting for it won't get us to net zero, actually. So it's super critical. But yeah, I would say that there's like definitely a growing eagerness for ESG commitments, for net zero commitments around companies around the world. And that I think greater regulations are coming down the line. So making sure those companies kind of prepare for it and account for it now will help companies future-proof themselves and their assets in the long run.

So when we talk, when you use nomenclature like Scope 1, Scope 2, Scope 3, educate me on what that means.

Yeah, so Scope 1 is kind of like the direct emissions kind of, you know, associated with a business. Scope 2, the definition for Scope 2 emissions is kind of like the indirect GHG emissions associated with the purchase of electricity, steam, like heat or cooling. So think like kind of the energy for, if you're talking about like a building, it's like the indirect GHG emissions associated with the purchase of like energy used to like power a building. And then Scope 3 are like the value chain emissions. So when you think about it, it could be like someone traveling to and from a building. So like employees commute is like an example of like what a Scope 3 emission would be.

I got it. And so, and so what you want, I mean, if you're, if you're really going to be really go to net zero in carbon, then you got to address all 3 of these scopes to be, to make sure that the whole op— it's not just the building itself, it's the operation within the building that's being considered for decarbonization.

Yeah, and I, I'll say too that Scope 3 is traditionally the most difficult to tackle, which is why a lot of businesses or buildings kind of choose to ignore it. One of the tools that they can leverage is carbon offsets, purchasing offsets to get there. We always try to, like, when we work with our clients and take them through the certification process, try to steer them away from purchasing offsets and invest in permanent removal strategies, because purchasing offsets you have to, usually you have to repurchase them every 2 years. So it's like an added cost and fee for an organization where investing in a permanent removal strategy will benefit you from like an ROI standpoint in the long run. So that's what we try to kind of work with our clients and companies that are going through the process to do. But yeah, getting across, across the, getting to net zero from a Scope 1, 2, and 3 perspective is definitely critical. Yeah.

So what is it that gets you excited and gets up in the morning and go to work?

I would say it's definitely the impact that our organization is having on emissions reduction. I think when I, you know, I first started in the environmental field, I first started working, I worked on the Hill on the Select Committee on Energy Independence and Global Warming for now Senator Markey, interning on the Hill. And then I worked at a clean energy think tank And I thought, you know, the work that we did was really critical and we did a lot of like research work. And obviously on the Hill it was like, you know, I worked on hearings and briefing, you know, the people who are testifying in front of Congress on various different things that are critical and like informing policy. But I felt like when I went to USGBC that the work that I was doing was having an actual impact on emissions reductions, like a tangible impact, if that makes sense. So, and then now at GFC, GNFC, it's a tangible impact on emissions reduction, but accounting for Scope 3, which is something that, you know, I feel really passionate about. And also as a mother, kind of the paying it, or I guess the paying it forward for future generations, the idea that we, our CEO always says this, but build better buildings equal better lives. So the, you know, the idea that every building that we're certifying and helping them eliminate their emissions is also contributing to a better quality of life for that community and, you know, better for the environment, etc.

Yeah, it's been interesting to me that the cost of consuming the environment has never been really adequately accounted for in any kind of accounting. So the cost of polluting or the cost of carbonizing or the cost of excess heat. All of these different costs, they're costs that have been avoided, sort of the tragedy of the commons problem. And it's interesting that companies, many companies are resisting now accounting for those costs even though they're real costs. And it's just so fascinating to me that profit is driving decision-making rather than thinking about preserving a, preserving an environment that allows you to do business in the first place.

I, I would say in our experience that most of the people we talk to have good intentions and want to get there. It's just that they don't necessarily have like the tools to be able to succeed. So I think that there's a reluctance sometimes to kind of go the extra mile and go to net zero because of that. And that's kind of where we're trying to enter in to kind of help break down the barriers and put in, like, create a roadmap and a pathway that people could use to get to net zero realistically over time. A lot of the companies that are making commitments are making these really bold commitments without actually having an understanding of where their emissions come in the first place. So like, what we try to do when we work with companies is have them assess their emissions before they even make a commitment, and then create a net-zero plan, and then implement like low-hanging fruit strategies that can help them, you know, that they, that they can make some real dent in their emissions kind of early on in the process. And then once they make those, start to think about kind of the bigger picture, maybe more intensive things that they could do to kind of move the extra mile and then get to net-zero and certify. So our process uses like an incremental approach to certification. Which is different than how it's kind of certification has traditionally been done. And that's kind of our strategy is to provide businesses with the tools that they can use to move there in a realistic way.

How do companies find out about you, your company?

So we, I, I would say that we, because we worked in the certification space in the past that we're working with some companies that we worked with previously because they kind of know us. But, you know, the number one way is obviously go to our website. And we also have a certification platform. So all like the whole certification process is data-backed. So it's built into the platform. We leverage this tool, it's called the GHG Protocol. That's kind of an industry-leading tool for how we calculate a company's carbon in the platform. And that the GHG Protocol is actually used by 92% of Fortune 500 companies in their carbon reporting now already. So it's kind of a, you know, a tested tool. So the platform is a great place to kind of come and learn about the certification process and to play around and see kind of like how it could work for a business or a building. We also have a YouTube channel with some really good kind of demos of the process and explanatory videos. And then definitely our social media or our LinkedIn account, I would say, is a good tool to kind of start to go through and learn, even if you're like not interested in pursuing net zero certification yet, but want to like learn about net zero. The LinkedIn platform, I feel like, is the probably the best place to go because we have like a regular cadence of like information about Scope 3 in particular. And then our platform also has an education portal that has kind of various different education videos about net zero and decarbonization too.

So Sarah, as you think about it, what are, what's unique about you that you bring to the table that helps make the company successful?

So I would say my, my background is, and actually I think that this is true of my CEO, our background is not necessarily like heavy in the environmental space from the onset. Like I feel like we each bring like a really unique kind of background that creates this team of people working together. So I was a theater major in college. My background is actually in like the creative side. And when I first started working in the— or after college, I worked in the theater industry in the DC area. So like, I, I guess from a marketing standpoint, I bring like this like creative side that has, you know, experience, like a lot of experience with writing and production and kind of like the art side. And then our CEO's background was like first primarily in technology. He worked for IBM and Lenovo for a really long time before getting in, and then he came to the US Green Building Council as the head of their, like, the technology side of the company. So he brings like a technology side. So there's this like convergence of like arts, technology, green building, like sustainability. And I think the various team members in our team kind of also bring that unique lens. So it's like this unique coming together of people who have various different skill sets, which I think is kind of a great melding.

Well, that, that, that kind of leads me to the core, core of the, the show, which is listening. So you've got all these people with different backgrounds, different life experiences, and obviously different perspectives, which can be really good, but it can also create a little bit of chaos if people don't listen to each other. So how do you manage that, especially you as the— you're Chief Strategy Officer, but you really sound like you're the Chief Operating Officer too. You're kind of running the show. How do you manage— how do you get people to listen to each other when they come with such diverse and different backgrounds?

I think that's kind of true just of the human experience in general. Like everyone has a very different background. And I sometimes think that leaders kind of forget that I think that like, you know, leaders sometimes forget that like the people that they're working with have these outside lives, have like various different interests that are not necessarily like related to their job. So, you know, when I first worked in the theater industry, I felt like the odd person out because all everyone, anyone talked about was theater. And I was like, I like sports and I like all these other things. And I was young. But it felt like to kind of survive in that field, you really had to like eat, live, and breathe that every day. And that was what— and that just wasn't for me. I had all these other interests, and it— I really liked going to shows, and I like, like that part of it, but I didn't feel like it was like the right fit for me. Um, and I felt like the odd person out. So, but you know, now I would say in terms of like listening as like a leader that, you know, I've I've heard a lot of people say this and I really think it's true and that it resonates, but I like to be like essentially like the dumbest person in the room. And I know that sounds like an exaggeration, but like it's really true. And I guess like what I'm saying when I like say that is that I really prefer, prefer to listen before I lead and to, you know, really be empathetic to the people around me who have different perspectives, different visions, even if I disagree with them. And then inevitably, like, when I speak, I'll be better informed and I will have to, like, what I'll have to say is more impactful because I've listened and tried to, like, understand them as a person. I also don't think I learned to listen from, like, thinking, like, about that quote. I think, like, the ability to listen for me, um, now as a leader is, like, coming from, like, a place of being a parent and my own experience there. So, like that has really, I think, influenced and changed kind of like the way that I really listen. Because like when you have two, I have two small kids, so I have a 4-year-old and a 2-year-old. So with that age, listening is like really key, especially in those like really early stages when they haven't like yet spoken. I'm going through that now. My, my 2-year-old like is actually has a pretty advanced vocabulary for a 2-year-old. He probably gets that from his brother. But like, I like, you have to, when they're talking, sometimes you have to imagine like how they must, like how they feel and to see everything around you to kind of like exhort, like absorb it like a sponge because like they really are sponges, but that they're not quite able to put it into words. So I have like, I have always really been like listening to them and what they're like trying to share with me. And like, I mean, if you think about it, like especially in the early, early childhood days, children have like the most to teach us about listening because like they're really impressionable. And the world is imprinting on them. And like their whole job is to listen and process. And they're kind of looking to us for examples, for mirror, for mirroring. And so in some way, like we really have to like behave with that leadership or that responsibility in mind whenever we are in their presence. And it's definitely something that like still to this day, something I'm learning from and that the lessons there are like definitely ones I carry into my work. So I'd say like my listening has like definitely changed from like early career days to like where I am now. And it's definitely been influenced by that.

You've made an interesting insight that is obvious. I hadn't really thought about it before as being a person who teaches people how to listen. And that is that young children, as you say, are sponges and they're constantly listening, but they also need to be heard. And oftentimes they aren't heard, and that leads later in life to situations where people who have felt invisible or not appreciated or not heard, um, confront difficulties in, in, in life because they have not been listened into existence. And the most important thing I think you can do with your children, your small children, is listen to their emotions, not their words, and tell them—

yeah, that's definitely true. And it's, it's easy to like I mean, we're tired as parents with everything we have going on. I think I, at this point, I think I start my day at 8:00 AM and I end it with them at like 10:30 is like when one of them goes to sleep. So then I have like a very short window of time to even unwind. But, but yeah, definitely I agree. Like the listening to the emotions is actually a really good point and I hope I'm doing a good job of that as a parent cuz it's critical.

The, the studies show that parents that engage in affect labeling, which is the technical process of listening to and reflecting emotions of a child, starting at the age of your children— by the time your children are 12, they'll be 2, typically 2 grade levels ahead of their peers academically and have the emotional maturity of a typical 21-year-old. That's how powerful this stuff is on brain development. And what's interesting is that when you move it in your point, when you move it into the workplace as a leader and you listen to your, your colleagues and the people you work with in the same way that you listen to your children— you listen to their emotions rather than to their words— people feel heard, and that builds trust and loyalty and rapport, and you become the leader that people want to follow because they feel safe around you. So there's not a lot of difference between being a good parent and being a good leader.

Yeah, I mean, I will say my children have definitely influenced even the way I approach like work now than when like early on in my career. So my oldest son was born right before COVID He was born 4 months before the pandemic started. And the day that I returned to work from maternity leave was the day our office shut down. So it was like I was at home working full-time, my daycare closed, so I had no daycare working full-time with a child at home. My CEO was amazing about it. Like the most, like Mahesh was like the most supportive person. So that was at least like that, that was, that was really helpful. But it definitely influenced, like, I think I used to care. I used to be like an absolute like perfectionist and care about every single thing. And I had like hard time. I took on way, way too much and I had a hard time like brushing things off. And then the, I mean, I think the pandemic was almost in a way like the antidote to like my perfectionism because it's like when you're working at home with a child and managing both of those at the same time, it was like easier to let like the small things go and to focus on like the bigger picture and say like, okay, you know, not everything has to be absolutely perfect. Right. Um, it's really about the bigger picture right now. So.

Are you, are you remote now or are you guys, um, in, in person?

I'm remote. We do have an office location, but I, I moved outside. So I, USGBC was headquartered in DC and I moved to Richmond in December 2020, or no, in March of 2021. So I went remote then and will probably remain here. Um, love it here, but okay, well, good.

One more question, I'll let you go. What's one thing about yourself that we would never know about unless you, you revealed it to us?

I will say there's a couple of things that, I mean, my close friends would know. I am an absolute avid soccer fan, probably my biggest passion outside of kind of the work I do. I grew up playing competitive soccer and I always kind of want my, my, my first dream was to be a professional soccer player. That did not pan out, but I played after I played actually until I got pregnant with my first son after college too. And huge, huge fan, follow it avidly. I would say, trying to think of like one thing like no one would know. It's hard because I feel like I'm definitely an extrovert and probably talk about one thing maybe not even my husband would know. That's definitely a hard one. Thank you. I think you stumped me there. Trying to— Trying to think of something. You know, I don't think that there's one thing that no one knows about me, to be honest.

Well, you're an open book, okay.

I mean, the, the, like, I, I, my, like, maybe my coworkers wouldn't know, like, some things that my close friends know from my, like, things that I used to do, like, in the past, like, be interested in, kind of some of the hobbies I had when I was younger. But yeah, for the most part, I'm a, I'm a, a huge extrovert. So I think I probably talk about—

there you go.

Yeah.

You wouldn't, you wouldn't know that I'm a jazz violinist unless I told you.

No, no. That is very interesting. I actually, I went to one thing. I went to theater camp for years, a, a theater camp in Michigan. I went for about 8 years every summer. And a huge influence on me in my life and eventual major in college. And actually, one of the Oscar winners this year went to summer camp with me at the same time.

Wow, that's amazing. Well, there you go.

That's cool. Divine Joy Randolph, she went to the camp with me at the same time, and she said that— I think she said in an interview that seeing a show that I saw when I was in camp there is what made her want to be an actress. Um, I thought that that was really cool, but it was a huge, huge inspiration for me just going into college. I was almost like an escape from like the traditional high school experience. I looked forward to it every summer, and it was really influential in just various aspects of my life. But we did one play when I was there that I was in. It was a— I was a theater major at the camp. They like, they have majors. The Laramie Project, which was like a huge— the experience of doing the play was a really, really big kind of defining factor in my life for me. Wonderful play. Very, very upsetting story, but wonderful play. I actually wrote my college essay about it. But I think I've actually used kind of insights from, from that play and that experience in like various talks I've given and other things. It's— it was definitely wonderful.

Good for you. Well, Sarah, thank you so much for your time today. It's been a real joy talking to you.

Yeah, you too. Thank you so much.

You're welcome. Doug Noll here. Thank you so much for listening to Listening with Leaders. If you are a successful executive leader who would like to be on this program, please visit podcast.dougnull.com/podcast. If you got something out of this interview, would you please share this episode on social media? Just do a quick screenshot with your phone and text it to a friend or post it on the socials. If you know someone that would be a great guest, tag them on the social media to let them know about the show and include the hashtag #ListeningWithLeaders. I love seeing your posts and guest suggestions. We are regularly putting out new episodes and content. To make sure you don't miss any episodes, go ahead and subscribe. Your thumbs up ratings and reviews go a long way to help promote the show and mean a lot to me and my team. Wanna know more? Go to my website, DougNoll.com, or follow me on LinkedIn, Facebook, and Instagram. That's @DouglasEnoll. Thanks for listening, and we'll see you on the next show.