COP26 was long-awaited and much anticipated, but it has now come to an end. The talks made some progress towards agreeing on a roadmap to halt climate change. This blog aims to lay out what those agreements mean for business.
Firstly, the talks have emphasised the urgency for climate action, with ministers agreeing that countries should return next year to submit stronger 2030 emission reduction goals. Ministers have also agreed that more wealthy countries should provide more resources to help poorer countries who are more vulnerable to climate change; developing countries are facing devastating consequences from climate change, from failing crop yields due to lack of rainfall, to damaging storms that are wiping out towns and villages.
The Glasgow Climate Pact makes commitments to reduce methane emissions, halt and reverse deforestation, end international financing for fossil fuels, and accelerate the phasing-out of coal. Importantly, commitments also included aligning the finance sector with net-zero by 2050; over 400 financial firms which control over $130 trillion in assets committed to aligning portfolios to net-zero by 2030.
COP26 has called on countries to ‘revisit and strengthen’ their 2030 net zero targets, so that they are aligned with the Paris Agreement temperature goals: limiting temperature increase to 1.5 degrees Celsius. Over 1000 cities and local governments signed up to the Cities Race to Zero to raise climate action to limit global warming to 1.5 degrees.
Implications for Business
What does COP26 mean for businesses then? To hold businesses and other accountable for reaching their net-zero goals, the UN Secretary General António Guterres announced that he is creating a high-level expert group that will establish clear standards to measure and assess commitments. Businesses will need to start accurately measuring and reporting their emissions in order to satisfy regulation. Investment into sustainable technology that aids in data capture and reporting will have to be made, and businesses will have to visualise their strategy long-term, rather than working on providing short-term profit results for stakeholders.
McKinsey’s most recent sustainability report notes that companies can in fact gain advantage from translating net-zero pledges into plans, and commitments to systematic change mean that net-zero is now an organising principle for business. Sustainability is here to stay and will need to be incorporated into every aspect of business strategy in order to ensure longevity of business. Acting on corporate social responsibility to be sustainable, rather than greenwashing, is beneficial for business and the environment alike.
Benchmark’s Carbon Calculator software: can accurately measure and report your carbon emissions, working upstream your supply chain, and allowing you to identify where emission reductions can be made. We are the first software provider that can calculate at the SKU level – meaning that you can work on a granular level and identify exactly where you are, helping you to set your net-zero goals.
If you would like to find out how Benchmark could help your business, then send an email to: enquires@benchmark-consulting.co.uk
Recent Comments