How can you align your business goals with the UN's climate change goals?

Aligning business goals with the UN's climate change goals involves setting targets to reduce greenhouse gas emissions, increase energy efficiency, and transition to renewable energy sources. Implementing sustainable practices throughout operations, supply chains, and product lifecycles can mitigate environmental impact while also reducing costs and enhancing competitiveness. Engaging with stakeholders, investing in innovation, and advocating for supportive policies further demonstrate commitment to addressing climate change. By integrating sustainability into core business strategies and operations, businesses can contribute to mitigate climate change while also unlocking opportunities for growth and resilience in a low-carbon economy.

The first thing to do is to find out the situation. You can determine how much greenhouse gas emissions you are currently emitting, taking into account the standards of the sector you are in, for example with an AI-supported tool. Once you have done this, you should determine the point where you need to be, make your plans with the value chain and take steps towards that goal.

Assessing your climate impact is essential for numerous reasons and serves as the foundational step in establishing a company's climate strategy. This assessment is pivotal in identifying where and how your operations contribute to greenhouse gas (GHG) emissions. Aligning with the United Nations' climate change goals, particularly those outlined in the Paris Agreement, involves committing to significant emission reductions to limit global warming to well below 2 degrees Celsius above pre-industrial levels, aiming for 1.5 degrees Celsius. By assessing their climate impact, companies can align their strategies with these global objectives, contributing to the collective effort needed to combat climate change.

Companies should first understand the UN's climate goals, such as those outlined in the Paris Agreement and the Sustainable Development Goals (SDGs). This involves conducting a comprehensive carbon footprint assessment to identify and quantify emissions across all business operations. Implementing sustainable practices is crucial. Innovation in sustainable products and technologies, stakeholder engagement, transparency in progress reporting, and advocacy for supportive policies are also key components.

If all companies are concerned about saving the environment, then who is destroying it? It is a fact that there is a massive challenge in truly understanding the impacts that companies have on the world. The trend is for companies to sideline climate impact assessment because, initially, it does not generate revenue. So, to assess your business according to the UN, the first step is to create your greenhouse gas inventory, including all gases from your processes. From this point, the strategy can be developed.

Despite 60% of Norway's cars being electric, fuel consumption has only fallen by 10%. This is because commercial activities, not individual choices, dominate fuel and plastic use. For instance, plastic straws, though a popular symbol of plastic waste, contribute insignificantly compared to commercial waste. Real change requires commercial sectors to lead in sustainable practices, and consumers to choose eco-friendly suppliers. Without this shift, minor improvements by individuals are overshadowed by the larger scale of commercial impact. Therefore, both consumer choices and business models must fundamentally prioritize sustainability for meaningful environmental progress.

To align with the Paris Agreement, it's essential for companies to set science-based targets (SBTs). Science-based targets provide companies with a clear pathway to reduce greenhouse gas (GHG) emissions in line with the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels, and pursuing efforts to limit the temperature increase even further to 1.5 degrees Celsius. The Science Based Targets initiative (SBTi) offers companies guidance on setting SBTs, including methodologies for setting emissions reduction targets consistent with climate science. The initiative also provides tools for target validation, ensuring targets meet rigorous criteria.

Setting science-based targets ensures the emission reduction efforts match the global imperative to limit warming to well below 2°C, in accordance with the Paris Agreement. This approach enhances a company's credibility, attracts environmentally conscious consumers and investors, and encourages innovation by driving the adoption of sustainable technologies and practices. Moreover, it aids in risk management by preparing businesses for future regulatory changes and positions them competitively in a transitioning low-carbon economy.

In the realm of sustainable finance, innovation and diversification in green bonds are key to meeting the dynamic demands of investors and issuers. The market is evolving with various types of green bonds, including green sukuk, securitization, covered bonds, loans, and hybrids, each catering to specific environmental and social projects. These developments offer diverse benefits and risks, alongside unique regulatory and market implications, highlighting the sector's growth and the increasing need for tailored financial solutions.

A key step for businesses is to put the money where your pr is. Implement low-carbon solutions. This means reducing GHG emissions, increasing energy efficiency, and transitioning to renewable energy. Enhancing carbon sinks, like forests, which absorb atmospheric CO2, is also vital. For immediate impact, consider purchasing carbon credits to offset your expected annual emissions. Use standards such as RE100, LEED, or the Carbon Trust as guides. These actions not only reduce environmental impact but also lower costs and add value for stakeholders, marking a smart move towards sustainable business practices.

Upgrade to Energy-Efficient Appliances: Optimize energy use with high-efficiency lighting, appliances, and HVAC systems. Transition to Renewable Energy: Install solar panels, wind turbines, or purchase green energy through RECs or PPAs. Adopt Sustainable Transportation: Shift to electric or hybrid vehicles, encourage public transport, cycling, and carpooling among employees. Embrace Circular Economy Practices: Minimize waste with recycling, composting, and designing products for repairability and recyclability. Encourage Supply Chain Sustainability: Work with suppliers to reduce emissions and implement sustainable procurement policies.

The UN sustainability goals are far more than just about carbon. While in many ways the carbon question is the most urgent and critical as failure to address it makes everything else harder, it would be inappropriate to focus just on that.

Implementing low-carbon solutions allows businesses to align with the UN's climate change goals by adopting renewable energy, improving energy efficiency, utilizing sustainable transportation, engaging in carbon offsetting, and embracing circular economy practices. These strategies reduce reliance on fossil fuels, cut emissions, and promote sustainable resource use. Innovating products and services for lower carbon impact, involving employees in sustainability efforts, and ensuring supply chain sustainability are also crucial steps. Such measures not only contribute to global efforts to combat climate change but also position businesses competitively in the green economy, enhancing brand reputation and opening new market opportunities.

What is the cost of low carbon? Implementing low carbon solutions should be priorities in European countries, the USA, and other developed nations, as their energy matrices and consumption tend to be much higher than in third world countries, where inequality "prevents" larger impacts on our climate. Meanwhile, third world countries like Brazil need to focus on skipping the technological stage that led the world to its current state! Therefore, extensive work is needed to use resources that truly generate a positive impact. For example, do electric cars that use energy from thermal power plants make sense? Hence, all theoretical and scientific bases must be validated before putting all actions into practice.

Effective reporting involves detailing efforts to reduce greenhouse gas emissions, transitioning to renewable energy, and implementing sustainability initiatives. Organizations should use recognized frameworks like the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), or Carbon Disclosure Project (CDP) to structure their reports. Include specific achievements, such as emission reductions, energy efficiency improvements, and renewable energy adoption, along with future plans to further reduce the carbon footprint. By transparently reporting progress, organizations demonstrate their commitment to the UN's goal of limiting global warming.

Reporting around Sustainability is very difficult. Most (all?) companies are not doing as much as the world needs so however good the report is it will be relatively easy for people to point out short comings and omissions. As such it is (sadly) natural for companies to minimise the report to what is required as statutory. Hopefully you can find ways to go beyond and one effective route is to use mini case studies of how specific actions can make specific positive change to a group of people. That way if makes it clear that even if a lot is not being done, there are benefits coming from the actions

Reporting progress enhances transparency, accountability, and stakeholder engagement. This practice allows companies to benchmark their environmental performance, ensuring compliance with increasing regulatory requirements and attracting investment by demonstrating a commitment to environmental, social, and governance (ESG) criteria. Moreover, detailed reporting supports the global effort to combat climate change by showcasing how businesses contribute to the Sustainable Development Goals (SDGs) and the Paris Agreement, thereby enhancing their reputation and competitive advantage.

In the UK, Scope 1 and 2 emissions is mandatory for larger companies. Scope 3 reporting is likely to become mandatory in the coming years, and reporting standards will likely trickle down to SMEs too. The earlier you get a handle on the reporting and verification process the easier it will be. For Scope 3, start the conversations with your supply chain early as they may not be reporting yet (especially if they are smaller).

Remember the Green Claims Code and advertising standards apply to all public facing documents, which includes your sustainability report if you publish it. Under the EU Green Claims Directive, you can no longer rely on carbon offsets when talking about your progress towards Net Zero, and under UK regulations you must declare the % of offsets vs reduction action.

As mentioned above, real examples positively impact real people make these reports easier to read and hopefully drive a positive discussion on what you are doing.

Die SBTi sind ein guter Anfang um Ziele zu setzen. Diese gilt es allerdings auch umzusetzen. Maßnahmen sind dafür auf ihren Impact zu berechnen und die Abhängigkeiten zu bedenken.

As a Brazilian, I would like to share my perception of how the topic is being addressed. It is a fact that Brazil is one of the countries with the most credits to sell, and what is talked about in the market is that our regulation is highly sought after because there are many credits available for "carbon offsetting," and this is our criticism. I believe it is important for countries like Europe, the USA, among others, to seek solutions beyond the carbon market because merely buying the right to pollute does not guarantee addressing climate change. I understand that this market is part of the work, but it is not even 20% of what we need to do as a civilization to meet the agreements made at the UN!

Aligning business goals with the UN's climate change goals involves understanding and adapting to the preferences of the conscious consumer. By evolving products and practices to meet their expectations, businesses inherently move towards alignment with climate change objectives. Ultimately, understanding and meeting customer needs are pivotal in driving sustainable business growth and contributing to broader climate change mitigation efforts.