COP26 demonstrates how net-zero success and business success are now aligned
It’s just over a week since the gavel came down at COP26 Glasgow and the Glasgow Climate Pact was agreed. A good time to reflect on what was, or wasn’t, achieved.
Was it a success? That of course depends on your expectations going into the event. Those who anticipated major breakthroughs similar to COP21 in Paris, were always going to be disappointed. This COP, and next year’s in Egypt, are about establishing the detail of the country, system, sector and organisational level changes that need to happen for the Paris goals to be met.
Looking at the output across the full two weeks, rather than the Climate Pact alone, is where we see grounds for optimism. Day after day at COP26 sector specific initiatives were announced that will provide the blueprints for how the world can use public-private collaboration and human ingenuity to tackle climate change.
In week one the Glasgow Breakthrough Agenda established a commitment for countries (notably including both China and the U.S.) to work together to accelerate the breakthrough technologies required to decarbonise rapidly. Covering power, road transport, steel and hydrogen it will enable faster transition of these key sectors.
Subsequent announcements drilled down to sector specific action, for example the transport sector initiative to accelerate the transition to 100% zero emission cars and vans. Or the announcement by the Global Consumer Goods Forum, a coalition of consumer goods retailers and manufacturers, to become an official Accelerator of the UN-backed Race to Zero campaign.
These initiatives are not yet enough to limit global warming to the Paris Agreement levels. However, they are cause for optimism because they demonstrate where the leaders in sustainable business are innovating and over time this will become the new normal across the economy as competitive forces take hold.
With the financial system looking to back these sustainability leaders, as outlined by the Glasgow Financial Alliance for Net Zero, and financial reporting shifting to sustainability as confirmed by the announcement of the International Sustainability Standards Board, the momentum is inexorably building.
As a business owner there is now competitive advantage in having a clear plan in place to reach net zero and manage the physical and transition risks on the pathway. As stated by McKinsey in a recent post “the basis of competition has changed, and there is now a premium on sound net-zero planning and execution.”
For companies looking to thrive in this new normal now is the time to up the effort on sustainability and net zero planning, and delivery. Those who already have near term and longer term science based targets in place across Scope 1, 2, and 3 emissions are in a better position than many peers.
To push home this advantage organisations must now develop detailed plans to execute the transition to net zero, explain the investment involved, and then clearly communicate the risks and opportunities to their stakeholders.
If your company or organisation is on the path to net zero and keen to accelerate, or if you are just taking the first steps, we would be happy to have a conversation and see if Just Communications can help. Please contact Julius Duncan, julius@justcommunications.co.uk.