Sustainability Community

Good morning Community!

I thought I'd share a few things that we are seeing in the news today with regards to the most important gathering for the whole humanity – COP28. Boston Consulting Group has a good overview of major outcomes here:

Climate Finance:

• §  The UAE President Mohammed bin Zayed Al Nahyan announced a USD 30 million fund for global climate solutions that aims to attract USD 250 billion of investment by the end of the decade.
• §  The parties to COP also pledged USD700 million in funding to help lower-income countries cope with the loss and damage caused by climate changed
• §  10 principles to make finance available, accessible, and affordable were launched
• §  Governments will have to work to close the USD 18 trillion investment gap, prioritizing long-term gains over the costs in the short to medium term.
• §  The private sector will need to engage with regulators and governments to unlock investment and find innovative instruments to make sure the capital reaches the places that need it most. This includes moving beyond the financing of individual projects to a more systematic approach and integrating carbon into decision making and asset valuation.

If you are at COP28 now, it would be great to hear from you on what you are finding most interesting and impactful?

Good morning Community!
Hope you had a great weekend. A bit of COP28 news.

According to The Guardian:

• §  The US was one of several countries to join an alliance to phase out power plants that burn coal and has announced rules to cut its methane emissions
• §  At least 117 governments have agreed to triple the world's capacity of renewable energy by 2030 and double the rate of energy efficiency improvements.
• §  50 oil and gas companies have signed a decarbonisation charter that analysts have criticised for ignoring the emissions spewed when customers burn the fuels
• §  22 countries have pledged to triple nuclear capacity by 2050
• §  Colombia, a major fossil fuel producer, has formally joined an alliance of nations calling for a fossil fuel non-proliferation treaty to prevent the "omnicide of planet Earth".

What are your takeaways and where do,you see impactful decisions made?

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Aya Pariy
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Hey Aya,

Thank you for posting the COP update! It is very helpful.

I had a comment on the private sector outcome you have listed. I completely see the reasoning behind that outcome based on my reading and interactions with various businesses. According to one of the studies conducted by University of Warwick, 90% of value-chain of any big business is made up of small & medium size businesses, most of which are private. In our race to increase transparency of supply-chain and to encourage these private businesses, which play an essential role in the wider scheme of things, we need to have more transparency with their ESG performance and create necessary data collection points which makes it easier for them to store and manage their ESG data, which can they be communicated to various stakeholders including banks and their customers. This would also create a systematic approach to project management and integrate carbon into their decision-making, in my humble opinion. Would love to hear your, and everyone else's, thoughts on this.

What a rollercoaster COP28 sounds! Here's a brief summary of the article in Bloomberg:

In an unexpected turn of events at the COP28 summit in Dubai, leaders, led by Sultan Al Jaber, head of the UAE's state-owned oil company, reached the world's first-ever agreement to move away from fossil fuels. Negotiations faced significant hurdles, including resistance from Saudi Arabia and OPEC against reducing fossil fuel production. Al Jaber, who had to contend with allegations regarding his lobbying intentions, released a draft proposal that drew widespread criticism for its weak language. However, dissatisfaction with the draft ultimately brought countries together, leading to intense negotiations and bilateral meetings. Key figures, including John Kerry and Xie Zhenhua, played pivotal roles in bridging gaps, resulting in a final agreement that, while not universally satisfying, allowed for continued use of some natural gas and highlighted carbon capture as a climate solution. The outcome is seen as a diplomatic success for Al Jaber and the UAE, though challenges, such as securing finance for developing countries, remain to be addressed in future climate conferences.

If you joined COP28, here's the discussion to share your thoughts and may be even a few pictures?

The ISSB's new international sustainability standards, effective in January 2024, received strong support from a wide range of stakeholders at COP28. To help companies adopt the standards, the ISSB launched its new knowledge hub on COP28's Climate Action Day. The hub's resources will help companies develop skills, capacity and share knowledge to ensure sustainability reporting can help provide better information for those driving climate action across the business world.

Read more here and share your insights