How COP26 will affect your business | LesAffaires.com

Climate activists 'set fire' in Glasgow's George Square with an art installation of fake flames, smoke and banners, and giant fire extinguishers, creating a field of climate fire to welcome the world to COP26 . (Photo: Getty Images)

GEOPOLITICAL ANALYSIS — Several observers speak of the last chance summit in order to avoid a runaway climate. One thing is certain, the COP26 which opens this Sunday in the United Kingdom will accelerate the fight against climate change and the adoption of increasingly strict measures to decarbonize the economy.

This 26th meeting of the United Nations Framework Convention on Climate Change, which is being held in Glasgow from October 31 to November 12, represents a major challenge for all companies, especially for those whose carbon footprint is still high.

Because if the 197 countries present are really serious about limiting global warming to +1.5 degrees Celsius compared to the beginning of the industrial era (it has already warmed by 1 degree), it will hurt, for use a popular expression.

Judge for yourself.

As of September 30, despite new commitments presented by more than 120 countries, the gap with the reductions necessary to limit warming to +1.5°C was “very significant”, concludes a report made public on October 26 by the Program of the United Nations for the Environment (UNEP).

New pledges reduce emissions projections for 2030 by 7.5%...

Only 7.5%!

However, a decrease of 55% is necessary to limit warming to +1.5°C and of 30% to limit it to +2°C — and even at this level, the impact will be strongly felt, and this, from fires and floods to heat waves and premature deaths.

This illustrates how much it is necessary to accelerate the fight against climate change, and that your organization must also prepare for the tightening of climate measures post-COP26, underline the specialists.

1.Strengthen your ESG criteria

If this is not already the case, companies must quickly adopt a sustainable development strategy.

Your organization will thus be better equipped to reduce its carbon footprint, but it will also be better perceived by investors, consumers and the new employees you desperately want to recruit in a context of labor shortages.

2. Prepare for new legislation

Since the first COP in 1995, more than 2,000 environmental laws have been adopted worldwide (77 on average per year) in an attempt to limit global warming, according to the European Business Review magazine.

This pace will accelerate with growing climate awareness and growing voter pressure on governments.

3.Innovate and adapt your business

Like the fight against COVID-19, the long-term fight against climate change will create new demand for goods, services and technologies that will be needed to decarbonize the economy and limit the impact of global warming. This is an opportunity to innovate and bring these solutions to market as quickly as possible.

Take the opportunity to strengthen the resilience of your supply chain (supply, production, marketing), as natural disasters will increasingly affect your suppliers and customers, especially those located in coastal areas.

4. Be a real climate leader

Several companies have massively reduced their emissions. Others, on the other hand, have decided to go much further by eventually consuming only 100% renewable energy.

Thus, more than 300 influential multinationals, members of the RE100 climate group, have committed to achieving this goal, not to mention those who have already achieved it.

For example, the pharmaceutical company AstraZenaca will consume only green electricity in 2025, while the bank Barclays will reach this target in 2030. All of the global factories of the electronics manufacturer Apple have already been powered by 100% renewable energy since April 2018. …

Canada, this climate dunce

This prospect does not make the headlines, but of all the companies active in developed countries, it is undoubtedly in Canada where they will have to make the greatest efforts to meet the new climate requirements.

Among the 197 countries present in Glasgow, there are good and bad students, underlines a recent comparative analysis published by the Financial Times of London.

Among the good ones, we find countries that have reduced their greenhouse gas (GHG) emissions over the past year, such as France (-2.46%), Germany (-3.31%) or Japan ( -4.04%).

Among the dunces of the class, we find Canada (+2.37%), China (+2.61%) and the United States (+3.22%).

And contrary to a widely held myth, Canadians produce more GHGs on average than Americans.

In 2018, you and I produced an average of 15.4 million tons of CO2 compared to 15 tons of CO2 for an American.

In Europe, the French, the British and the Germans emitted an average of 4.5, 5.3 and 8.4 million tonnes respectively in 2018.

Do you understand why COP26 concerns you?