![]() Businesses that are taking a lead in fighting climate change have tasked their lobbyists with a strategic priority: to ask government to legislate for sustainable business. Take regulatory affairs as just one example. Our work with the Environmental Defense Fund to create a ‘climate action accelerator’ is just one example of new tools and resources emerging to help companies up their game across the board. Secondly, it means setting clear direction and accountability to the people that run the business, across all functions, to find new ways to drive sustainability and reduce emissions. With climate risk also a key item for the Chief Financial Officer, digital solutions such as ERM's Climate Risk Impact and Solutions Platform (CRISP) can enable companies to evaluate and respond to climate-related financial risks and opportunities across the organization's global footprint. In practice that means initiatives such as teaming Chief Sustainability Officers with Chief Planning Officers to enable a deeper integration of climate crisis mitigation into the commercial planning of organizations. Rather sustainability must run through the corporate DNA. These are actions that climate change leaders are already undertaking, and they promise to drive profound but achievable change to the way in which business is conducted.įirstly, and as TCFD makes clear, companies must do more than just pay lip service to sustainability through, for example, climate/sustainability reports. Given the urgent need to decarbonize, businesses leaders should take several immediate steps. The actions and tools to make sustainable business a reality Finally, the full impact of the Financial Stability Board’s (FSB) Task Force on Climate-Related Financial Disclosures ( TCFD) – which ERM helped write the technical guidelines for – is clear: capital will flow to the most sustainable businesses. ![]() Finance is fast becoming conditional on coherent and achievable climate action plans. Rather, we’re seeing structural change in the way mainstream investment decisions are made. ERM’s work with major banks like JPMorgan Chase to align their day-to-day decision making with climate goals is just one example of the major steps organizations are taking to tackle climate change.Īnd to be clear, it is also about more than ESG-branded financial projects. This is because the financial markets now have a much clearer-eyed understanding of the risks and opportunities of climate change and are factoring sustainable practices into their investment decisions. Meaningful shifts already underwayįortunately, there’s good reason to hope that profound change is possible. The stark reality is that the business community needs to act now, even in the absence of clear regulatory frameworks. Frankly, however, waiting for meaningful policy interventions has not served us well in the past. ![]() The IPCC stresses the importance of policy in reaching this goal. Current nationally determined contributions to reducing emissions are not sufficient to achieve this aim. According to the report, global GHG emissions must peak by 2025 at the latest to limit global warming to within 1.5C. While the rate of growth in global greenhouse gas (GHG) emissions between 20 was lower than between 20, it continues to rise. ![]() The report makes clear that there’s a rapidly closing window in which to align to a net zero pathway and avoid the worst impacts of climate change. On April 4, the Intergovernmental Panel on Climate Change (IPCC) published the third and final installment of its current review of climate science. ![]()
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