When businesses thrive, society thrives. At the 2022 United Nations Climate Change Conference, commonly known as COP27, focused on implementing changes that will encourage sustainable business practices. The countries also got together to set up a fund to help poor countries battling the effects of climate change.
Many countries committed to helping reduce carbon emissions as the world scrambles to limit global warming to 1.5 degree Celsius. At COP27, many countries, who called for stricter regulations, made no objections as Egypt’s COP27 President Sameh Shoukry read the final agenda items.
COP27 Decisions and Guidelines
UN Secretary General António Guterres exhorted countries to fight climate change by reducing emission and also developing practices that can protect the planet from its effects.
On November 8, the COP27 Presidency launched the Sharm-El-Sheikh Adaptation Agenda. The global action plan aims to rally governments and non-state actors into contributing towards the building of a resilient world by 2030. This framework urges businesses and those in authority to adopt sustainable practices that will help people transition to a secure way of life.
- To build sustainable companies, organizations must first assess their climate risks and develop accordingly. From manufacturing to the finished product, companies must examine supply chains for possible improvements, and build resilience.
- Any new form of investment or product line must be developed keeping in mind a sustainable business model. Corporations must encourage innovation and technological advancements that will help us live comfortably in a new reality.
- Collaboration is the name of the game. Sustainable companies are not made without the right partnerships. Managing climate change requires collaboration amongst all rungs of society. Businesses can engage governments and clients in their suitability initiatives, as climate change has different impact on different locales and everyone must work together to mitigate its effect.
“Now we need to redouble efforts behind an energy, transport and agriculture transition that will limit these climate losses and damages in the future,” said Persaud, referring to a shift to cleaner forms of energy and sustainable farming. The EU called upon countries to cut emissions and urged large polluters like China to contribute to the loss and damage fund, which has been set up to combat climate change.
The COP27 draft agreement released by the UN’s climate office on Saturday exhorted countries to phase out the use of coal, the most polluting fuel, as agreed upon in Glasgow’s Climate Pact. The agency faced opposition from Middle-Eastern countries rich in oil when the US suggested phasing out all types of fossil fuels.
Limitations of Implementing Sustainable Policies
It would be tough to cut down on fossil fuel-based productions as Europe faces its worst energy crises in a decade. Germany has started using coal-fired power plants to brave the winter, as geopolitical instability caused by Russia reduced its oil and gas reserves.
Early October, the US called upon Saudi Arabia to increase oil production after the OPEC+ decided to cut production.
While ambitious climate goals have been in place since the Paris Agreement, a worsening economic climate has forced businesses and governments to reevaluate their strategies and costs. Some business have cut investments in sustainable practices as they struggle to survive.
At COP27, some civil observers also called attention to the widening differences between developed and developing countries, and warned that the consensus on global climate policy appears to be in danger and can slow progress even more.
Some analysts even suggested that COP27 was more focused on economic gains and even stripped off language that acknowledged core human rights, such as the right to a healthy environment.
All these factors have led to a great imbalance of power and even lesser action as countries take advantage of loopholes to adjust the goalposts on their net zero emission targets.
