As the world grapples with the existential threat of climate change, business leaders are being called upon to play a pivotal role in driving the transition to a more sustainable future. The science is clear: humans have just over a decade to limit global warming to 1.5°C above pre-industrial levels and avoid the most catastrophic consequences of climate change. But what does this mean for businesses, and how can they contribute to the effort?
Learn more: Cutting Carbon Footprints: The Urgent Quest to Reduce Greenhouse Gas Emissions
The Business Case for Climate Action
While some may view climate action as a social or environmental issue, it’s also a critical business imperative. Climate-related risks and opportunities are already impacting companies’ bottom lines, from supply chain disruptions to changing consumer behavior. In fact, a recent report by CDP (formerly the Carbon Disclosure Project) found that companies that disclose their climate-related risks and opportunities outperform their peers by 6.5% in terms of stock market performance.
Learn more: Can We Really Power Down Our Way to a Sustainable Future?
5 Ways Business Leaders Can Drive Climate Action
1. Set Science-Based Targets: Businesses can set targets for reducing greenhouse gas emissions in line with the Paris Agreement, which aims to limit global warming to well below 2°C. This not only helps drive down emissions but also sends a signal to investors, customers, and employees that the company is committed to sustainability.
2. Invest in Renewable Energy: Companies can transition to 100% renewable energy by investing in solar, wind, or other low-carbon energy sources. This not only reduces emissions but also helps reduce energy costs and improve brand reputation.
3. Implement Circular Economy Practices: Businesses can design products and services that are restorative and regenerative by design, reducing waste and the consumption of resources. This can involve implementing closed-loop production systems, designing products for recyclability, or using biodegradable materials.
4. Engage Employees and Customers: Companies can engage their employees and customers in climate action by providing training and education on climate change, setting up employee-led sustainability teams, or launching customer-facing sustainability initiatives.
5. Support Climate Policy and Advocacy: Businesses can use their influence to advocate for climate policies and legislation that support the transition to a low-carbon economy. This can involve partnering with other businesses, NGOs, or governments to promote policy reforms or supporting campaigns that advance climate action.
The Road Ahead
While the task ahead is daunting, business leaders have a critical role to play in driving the transition to a more sustainable future. By setting science-based targets, investing in renewable energy, implementing circular economy practices, engaging employees and customers, and supporting climate policy and advocacy, companies can help mitigate the impacts of climate change and create a more resilient and prosperous future for all.
Sources:
* CDP (2020). “CDP’s 2020 European Climate Change, Agri Commodities and Water Survey”
* IPCC (2018). “Global Warming of 1.5°C”
* UN (2019). “Sustainable Development Goals Report 2019”
* World Economic Forum (2020). “The 2020 Global Risks Report”
