Why act on climate
ECONOMICAL
BENEFIT FROM LEADERSHIP
FUNDAMENTAL
CHANGE THE LEGACY FOR OUR KIDS
COMPLIANCE
KEEP IN BUSINESS
Climate change
The current level of CO2 in the atmospheric is more than 40% above the level when the Industrial Revolution started in 1750. Fossil fuel emissions (including cement production) accounts for about 91% of total CO2 emissions from human sources.
Driving cost and energy efficiency
Efficient management of costs and resources are on the key positions of each CFO's priority list. Companies who choose the smart road yearly save billions of dollars via improvements in supply-chain management, fixing the costs of energy, optimizing the requirements for scarce resources and minimizing the risk of climate change and climate adaptation caused losses.
Access to fresh water
More than a billion people worldwide lack access to water, and a total of 2.7 billion find water scarce for at least one month of the year. By 2025, two-thirds of the worlds population may face water shortages. As a result of water pollution, every 90 seconds a child dies from a water-related diseases. About 1 million people killed by water, sanitation and hygiene-related disease each year.
Generating new demand
Green energy, cars, fast moving consumer goods, fashion, buildings, technology, events or even governments are trending and the private sector is now competing to serve this rising green demand. For companies who decide to act on climate change it can result not only in cost saving but also in new revenue streams.
Preparing for regulatory change
Governments all around the world implement sustainability policies. Once all parties ratify Paris agreement, 98% of global emissions will be capped. This will push the public and private sectors to clean measures by implementing relevant policies. Bright example is the EU's 2050 Low Carbon Economy package that targets 80% GHG reduction by 2050 compared to 1990 levels. Only by anticipation and staying ahead of this trend can the private sector ensure its long-term policy compliance.
Deforestation
2.6 billion people today still use biomass - mainly wood and charcoal - for cooking. We are losing 18.7 million acres of forests annually, equivalent to 27 soccer fields every minute. Between 1990 and 2015, total forest area decreased from 4,128 to 3,999 million ha, a net loss of 129 million ha which is approximately the size of South Africa.
Talent attraction
With Millennials and Generations Y,X coming to the center of the economical production, sustainability has became one of the key strategies to attract and retain talent. The new generations are increasingly motivated by purpose and well aware of the current environmental challenges. It is not an accident that the most desired global employers are often the most sustainable ones.
Improving regional perceptions
The world is in undeniable green wave with whole industries shifting to low carbon production altogether. Leading sectors are: energy, with countries announcing a fossil fuels phase-outs; transportation, with cities prohibiting diesel cars and consumers hungry for electric vehicles; construction, with highly energy efficient, passive or carbon neutral buildings. Companies then strive to stay on the top of this trend to ensure the competitive leadership by adjusting their operations, services and production that can serve the industry demand.
Differentiating the corporate brand
Initiatives like We Mean Business, Carbon Disclosure Project, RE100, Sustainable Brands or the American We Are Still In movement total up for tens of thousands of corporate brands who position themselves as sustainability corporate leaders to stay ahead of the competition. In addition, companies who incorporate sustainability into their core business models report to have better than industry results in risk management, growth and return on capital.
Realigning to industry shifts
The world is in undeniable green wave with whole industries shifting to low carbon production altogether. Leading sectors are: energy, with countries announcing a fossil fuels phase-outs; transportation, with cities prohibiting diesel cars and consumers hungry for electric vehicles; construction, with highly energy efficient, passive or carbon neutral buildings. Companies then strive to stay on the top of this trend to ensure the competitive leadership by adjusting their operations, services and production that can serve the industry demand.
Biodiversity
As a result of human activities, the current rate of species extinction is at least 100-1,000 times higher than the expected natural rate. This rate of biodiversity loss is comparable with the great mass extinction events that have previously occurred only five or six times in the Earths history. By 2100 the loss of living species may reach one-third of all species living now.
Engaging with investors and business partners
Starting with the PRI Montreal Pledge and Portfolio Decarbonisation Initiative in 2014 and continuing with S&P incorporating sustainability into their ratings the investors started to pay deeper attention to the climate change connected risk and started to decarbonise their portfolios. As the sources of green and low carbon technology financing are pouring to the capital market, the previously "good to have" sustainability development strategies rapidly turning into "must have".