A New Version of Business

Are countries and companies giving adequate attention to the impacts of climate change and demonstrating a willingness to compromise?

Well, this question has occupied my mind in recent years. While the Glasgow Climate Pact signed at COP26 in 2021 was historic in aiming to limit global warming to 1.5°C, many have labeled that summit a “failure.” For example, the activist Greta Thunberg emphasised the urgent need for significant annual emission cuts. This raises another critical question: Are we condemning future generations to a dangerous, uncertain, and depleted world?

Agenda 2030 calls for action at all levels: governments, businesses, and civil society, highlighting the crucial role that companies play in environmental, social, and economic development. For instance, COP26 brought together representatives from 194 countries, including 120 world leaders and approximately 38,000 delegates, demonstrating a collective commitment to addressing climate change despite global political divisions. However, it has become evident that top-down policies alone are insufficient. A structural transformation from the ground up is necessary, involving various sectors capable of driving innovation and collaboration. Companies have the capacity, skills, and resources to implement sustainable practices within their operations. Companies that adopt these practices are likely to gain significant long-term benefits. This highlights the urgent need to accelerate the green transformation by rethinking, reforming, reorienting, and reshaping our current systems as soon as possible.

Climate change is a global common challenge that requires collective action. While nations differ in their capacities to address this issue based on their economic and social development, they share a common responsibility. For instance, the Corporate Sustainability Reporting Directive (CSRD), effective in January 2023 within the EU, modernizes requirements for companies to report on the impact of corporate activities on the environment and society and requires the audit of reported information. This ensures that investors and stakeholders have the necessary information to assess companies’ effects on people and the planet. Sustainable practices—strategies and efforts aimed at reducing negative impacts on ecosystems—are vital for companies looking to grow, attract customers, and secure investors.

In recent decades, the effects of climate change have become starkly evident. Regions like the Pacific Islands face increasingly severe storms and rising sea levels, which amplify social inequities. Scientists warn that global warming could exceed a devastating 2.4°C by 2100, resulting in extreme weather events such as heatwaves, droughts, extreme rainfall, and floods, as we just witnessed in Valencia, Spain, in October 2024. To meet the 1.5°C target, nations must fulfill their commitments from COP26 and enhance their climate ambitions for 2030 and beyond. Failing to do so risks maintaining business as usual and condemning future generations to an uncertain future.

From my point of view, governments worldwide must mobilise the private sector to drive climate investments in both developing and developed nations, focusing on clean energy, electrification, forest restoration, green transport, marine conservation, urban resilience, and sustainable agriculture, for instance. Engagement from businesses is crucial, as they have the resources and expertise to make a positive impact by implementing and improving more sustainable practices within their operations. By doing so, companies might enhance their reputation, increase economic benefits, and access to new markets, among other benefits.

Building New Businesses

In this discussion, I want to emphasise the vital role professional service providers (PSPs) play in advancing sustainability initiatives. PSPs, including consultants and freelancers, may have a relatively low direct environmental footprint, but their capacity to influence clients and the broader economy is profound. These professionals are increasingly recognised as key drivers of the green transition, leveraging their expertise to foster transformative changes toward a sustainable future.

Global events like COP16, held in Cali, Colombia (October 21–November 1), and COP29, held in Baku, Azerbaijan (November 11–22, 2024), highlight the importance of aligning climate finance and sustainability strategies on a global scale. These conferences, along with future gatherings, are critical for understanding the complex impacts of climate change and identifying opportunities for the business sector to lead meaningful change.

I hope you found this blog insightful as I explored various perspectives on climate change—its environmental, social, and economic consequences—and the pivotal role of businesses in driving sustainable progress. Together, we can navigate these challenges and build a more sustainable future.