Boards have a critical role to play in keeping 1.5°C alive
Statement from the Climate Governance Initiative following COP27
The UN Climate Change Conference, COP27, closed with only five out of 198 countries setting stronger national climate targets. Given that current pledges put the planet on track to warm by 2.5°C by the end of the century a far cry from the 1.5°C limit set out in the Paris Agreement – it’s up to business to increase ambition and deliver climate action at scale.
We recognize that COP27 did not pass without notable progress in some areas. The continued growth of the Just Energy Transition Partnerships, with Indonesia joining South Africa, is welcome and the historic agreement for a Loss and Damage fund is commendable, but this must be followed by concrete actions and a meaningful framework for implementation. The pace at which ambition becomes action must be accelerated with urgency.
We call on our fellow board directors around the world to take action by ensuring their organizations take ownership of the much-needed change.
As stewards of our companies, we have the ability and responsibility to ensure the long-term resilience of our organizations and keep 1.5°C alive.
We must ensure our businesses set ambitious climate targets which are backed up by credible transition plans both for our companies and their ecosystems. We must place just transition at the heart of what our businesses do and align our actions with the Paris Agreement and the Net Zero Emissions by 2050 scenario.
As we look to COP28, we must ensure the year ahead is one marked by ambition and action. Action that lets the world know business takes the climate crisis seriously, understands how critical its role is, and is ready to play its part.
The Climate Governance Initiative is driven by communities of non-executive directors known as Chapters, with a collective network of more than 100,000 individuals. These individuals can influence trillions of dollars of capital and the emissions of thousands of companies through the boards on which they serve.
The Climate Governance Initiative provides a platform for knowledge and experience exchange for non-executive directors at each stage of their climate journey. Guided by the World Economic Forum’s Principles for Effective Climate Governance, the Initiative’s mission is to empower non-executive directors as they accelerate their company’s journey to close the gap between ambition and action, manage transition risks and identify the opportunities for their business.