Climate50’s Post

The time is now to double down on your climate transition Based on our experience with EU clients, we know that the workload to meet minimum compliance is always underestimated. Taking a proactive stance is key, delay is not an option. Echoing the sentiments of Joe Longo, if you delay until after legislation passes you are already behind. With the right strategy in place gathering data is the easy part. The real challenge lies in integrating climate into existing business systems and processes. Fortunately, we're here to help. Our team specialises in translating ambition into action. Whether you prefer to manage yourself or seek expert support, we offer tailored solutions to suit your needs. If your budgets are tight - sign up to our Impact Academy to access a range of valuable resources, including: ✅ ASRS Screening Assessment: Assess your eligibility for Australia's new Sustainability Reporting Standards. ✅ Climate Change Maturity Assessment: Evaluate your company's current climate readiness and identify areas for improvement. (https://lnkd.in/eAeZBPXX) ✅ Net Zero Decarbonisation Strategy Course: Develop a robust strategy aligned with science-based targets. (https://lnkd.in/eX2cSf9f) ✅ Scope 3 Strategy Masterclass: Address complexities in your value chain emissions with expert guidance. (https://lnkd.in/euCbPKZg) ✅ Board & Executive Climate Competency Assessment: Identify leadership gaps for effective climate governance. (https://lnkd.in/ezDMUXsi) For those seeking specialised guidance, our team offers: ✳️ Climate Change Risk & Opportunity Workshops 📈 Climate Scenario Analysis ✅ Climate Disclosures ✅ Climate Transition Plans With support readily available, there's no excuse to delay your climate transition.

As global businesses navigate the complex landscape of climate transition, ERM's Paul Simpson OBE offers critical insights into transforming net zero ambitions into actionable strategies. With regulatory pressures mounting, particularly from EU directives like CSRD and CSDDD, companies must develop robust climate transition plans that not only mitigate risks but also unlock substantial investor confidence. Simpson emphasises the strategic importance of translating climate targets into operational actions that generate commercial value, positioning sustainability as a pivotal driver of long-term profitability and corporate resilience. #ClimateTransition #SustainableBusiness #CorporateStrategy

There was only so long that most investors could place the climate crisis at arm’s length (citizens, too!). But since climate change commands the elements, it touches everything of value. So it’s essential that organizations, from city, county, and state governments, universities and hospital systems, as well as businesses small and large, to investigate and evaluate their current and pending climate threats. They should lean into their responsibilities to the web of life, to dignity, and support right livelihood. Investors, citizens, and taxpayers want these actions. For companies, “transparency and foresight can lead to improved access to capital, lower cost of capital and enhanced shareholder value.” Knowing where your climate risks and mitigation potential lie, planning to manage them, and implementing those plans shows responsiveness to conditions affecting your business and the world. For local and state governments, it provides confidence to citizens that you are taking public opinion seriously and facing an increasingly disruptive world with a sober and steady mind. In all cases, it is owning who you are, where you are, right now, and charting a course that others can follow. It’s climate leadership. None of this is magic. It’s simply sober thinking: acceptance, prioritization, and walking the path. Done right, it will draw down emissions and lead to more just and sustainable futures. https://lnkd.in/eZrb_SFd

What does your organisation think climate change is about? Maybe they are focused on reducing emissions, or are they concerned with the changing climate and the impacts its causing, or possibly are they lifting their eyes up and seeing the big transitions underway. I've got a great tool to help you see the whole elephant that is climate (and yes I know that elephant lives in a much bigger jungle called Nature 😀 ) For my first ever webinar come and learn about Foreseeable's Climate Response Wheel. It might not be slick but it will be informative. What you'll take away from this webinar: An appreciation of the Holistic Approach required for Climate Action: Learn how the Climate Response Wheel integrates various aspects of the value chain, ensuring that every part of the business is considered in the climate strategy. This holistic approach helps in identifying and addressing all potential impacts and opportunities. Layered Strategies for Adaptation, Decarbonisation, and Transition: Recognise the importance of having distinct yet interconnected layers for adaptation, decarbonisation, and transition. Each layer addresses different facets of climate action, from immediate risk management to long-term sustainability goals. Role of Enablers in Climate Journey: Understand the critical role of enablers—such as knowledge, technology, regulatory environment and stakeholder relationships —in either facilitating or hindering progress. Understanding these enablers can help organisations better navigate their climate journey and implement effective strategies. Thursday 26th September at 10am for an hour. (sorry had to move from 25th due to a clash) Link in the comments.

This month we're focusing on some of the changes to mandatory climate reporting, climate risk and the effects on boards, directors and companies in our space. Check out our first blog on the topic here: Navigating climate risk in the boardroom https://hubs.ly/Q02RPdKs0

The data is clear - climate change poses massive economic threats. Yet many investors still favor fossil fuels over sustainable alternatives due to their perceived risk-return profile. This disconnect reveals a failure to price in long-term climate risks. We can't ignore the dangers. The Network for Greening the Financial System (NGFS) models potential output losses of $15 trillion by 2050 without climate action - nearly the size of the Eurozone economy. And that's just the start, as risks compound over time. Rather than relying solely on historical data, we must use scenario analysis to envision potential climate futures and their financial impacts. The NGFS provides a framework mapping pathways from a "hot house" world to net zero. These make clear that inaction carries catastrophic costs. But risks cut both ways. The transition to a low-carbon economy also threatens to disrupt incumbents unprepared for tougher climate policies. Robust transition plans are crucial for companies to adapt business models and maintain profitability. Guidelines like those from the Transition Plan Taskforce offer a roadmap.  Credible, rising carbon prices would further align incentives for sustainable investment. Yet gaps in data, frameworks, and policymaker guidance hinder progress. The financial sector wields immense power to steer capital toward climate solutions - but first, we must enhance climate disclosure, standardize transition plans, and advocate for smarter climate policies. Those who treat this crisis as a mere compliance issue, rather than an existential threat, risk becoming the idle bystanders Einstein warned of. The choice is ours: drive the climate transition proactively, or bear the consequences reactively. Context from: Reaching net zero - the risks of idle bystanders Keynote speech by Dr Sabine Mauderer, Member of the Executive Board of the Deutsche Bundesbank, at the Net Zero Delivery Summit, London, 4 June 2024.

While discussions and negotiations from COP29 and the G20 continue, one thing is absolutely clear: it’s time to align our portfolios with our climate commitments. We are at a critical juncture in the fight against climate change, yet investors lack clear resources to identify and compare investments that drive a net zero economy. This is essential to build the sustainable industries of the future that will provide good jobs and shared prosperity. Our recent report, Climate Solutions Investing in Review: An Analysis of Key Issues and Recommendations for an Investment Framework, is the first step in building a framework to direct capital toward high-impact climate solutions. Key findings show that climate solutions investments vary widely, from early-stage technologies to scaled solutions and it is essential to identify which of these are “sufficient” to meet ambitious climate targets and align capital with the most effective pathways to mitigate emissions. The GIIN’s Climate Solutions Initiative is focused on climate mitigation, providing resources to guide all investors — regardless of asset class — toward impactful climate solutions. This is the first of several tools our team is developing to support asset owners and managers in their journeys toward a net zero economy. 🔗 Download the report: https://lnkd.in/eCnb48zE

This is the second edition of the ClimateWorks Global Intelligence report, “Achieving global climate goals by 2050: Actionable opportunities for this decade.” The findings highlighted in this report are intended to serve as a resource for climate funders and others interested in climate change mitigation to identify priorities for emissions reductions. The report outlines many intervention areas within electricity, fuel supply, transport, buildings, industry, land use, agriculture, and technological carbon dioxide removal and across 10 global geographies, with a focus on achieving net-zero CO2 emissions by 2050. These priorities are designed through a scenario exercise with a modeling tool that captures a nuanced story about the linkages and trade-offs inherent in climate change mitigation strategies.The modeling results illustrate pathways toward achieving the emissions reductions needed to achieve a 1.5° C compatible pathway with limited temperature overshoot (a temporary rise in temperature above the targeted rise of 1.5° C at any time between now and 2100) and are intended to serve as a guide to indicate the scale or impact of possible reductions. Ultimately, intervention strategies must be designed to realize these emissions reductions and to carefully evaluate other considerations such as effects on communities, human health, and social and economic factors and additional work and research is required to examine their intersections. These strategies will help mobilize the scale of change needed to achieve challenging emissions reductions.

Systematic Gap in Fight against Climate Change(2) In my previous post, I talked about the fragmented efforts of climate change initiatives. Currently, there remains an absence of coordinated international implementation to achieve emissions reduction targets under Paris Agreement. Following the 2008 financial crisis, rather than pursuing unified global solutions, nations have focused on establishing regional market mechanisms, specifically Cap-and-Trade programs and Emission Trading Schemes (ETS). I believe that this regional approach has created significant systematic gaps that impede effective and efficient global CO2 emissions reduction. The fundamental principle underlying Cap-and-Trade systems with Allowances is based on the assumption that these Allowances typically represent 60-70% of total CO2 emissions. The theory suggests that if governments systematically reduce Allowances in upstream industries over time, total CO2 emissions will correspondingly decrease, ultimately facilitating the achievement of carbon neutrality. This Cap-and-Trade framework originated from the successful acid rain reduction program implemented in the United States in 1990, which demonstrated the efficiency of Allowance systems. Current CO2 reduction strategies have adopted this model. However, the implementation of regional Cap-and-Trade programs has shown contradicting results. While most Annex and Non-Annex countries report declining Allowances and CO2 emissions, global CO2 emissions have continued to rise over the past 15 years. I think that this apparent contradiction can be attributed to the extensive globalization of industry since the 2000s, which has resulted in extended value chains reaching into areas where suppliers operate outside regulatory compliance in their countries. Consequently, CO2 emissions from these sources remain beyond the scope of local Cap-and-Trade programs. The similar situations can be found in the United States among California-based technology companies. These firms report substantial CO2 emissions (approximately 13-15 million tonnes) in their operations according to their reports. Their Scope 1 and Scope 2 emissions in California are nearly carbon neutral, which indicates the reduction of scope 3 emissions outside California will determine their net zero status. I think that while the current Cap-and-Trade programs have achieved certain objectives, it is important to acknowledge that the global industrial landscape has become increasingly complex and diversified. The compliance market, operating in its current fragmented state, cannot deliver the comprehensive sustainable outcomes required to address global climate challenges effectively. Scope 3 emissions and the importance of voluntary market will be the subject in the next post.

How will your business fare in a world that's 2°C warmer? Or even 4°C? The EU’s new Corporate Sustainability Reporting Directive now mandates companies to evaluate climate risks using scenario planning. Learn more about what this may mean for your business and find actionable steps to get started with scenarios in our blog. https://hubs.ly/Q02QnN6Y0 #csrd #climatescenarios #climaterisks #sustainabilityreporting #scenarioanalysis #scenarioplanning