Earlier this week (November 8), Swedish fashion company H&M Group joined more than 50 global companies, whose combined annual revenues equate to nearly US$900 billion and account for 1% of global GDP, the statement joined. action on climate policy engagement at COP27 in Sharm el-Sheikh, Egypt.
Independent media and research company B Corp, Corporate Knights and its Global 100 Council, which includes the world’s 100 most sustainable companies, launched the action statement by submitting a roundtable proposal on October 20, 2022 and won the support of a number of global organizations. durable.
H&M Group was joined by 56 other signatories from a host of other industries, including the telecoms industry’s BT Group and the Race to Zero climate campaign, to show their commitment to the policy pledge to help fight climate change, not block it.
The letter suggests closing the emissions gap and decarbonizing economies by:
- Support climate action aligned with the Paris Agreement when engaging with policy makers
- Work with their key industry/trade associations to advance alignment with the Paris Agreement
- Monitor and disclose climate policy alignment for their companies and key industry/trade associations.
H&M joins the second open letter for COP27
Earlier on November 4, the Alliance of CEO Climate Leaders which includes more than 100 CEOs of major multinational organizations shared an open letter for world leaders at COP27 ahead of the conference.
In this letter to world leaders at COP27, the H&M Group was joined by Zara’s parent company, Inditex, as well as a number of other global organizations in stating that limiting global warming to 1.5 degrees Celsius “requires significant collaboration and shared responsibility between the private and public sectors”. .”
The signatories, described as the CEO Climate Alliance, said: “We stand ready to work side-by-side with governments to drive bold climate action. We encourage all business leaders to set science-based targets to halve global emissions by 2030 and reach net zero by 2050 at the latest.
“We believe that corporate commitments to climate action backed by private sector action and investment can strengthen the mandate of governments to raise their own ambitions and enable faster progress. Government goals, supporting policies, and transition plans can provide clarity, predictability, and the competitive landscape to encourage more businesses to act and make transition-aligned investments.
Against this backdrop and as leaders gathered at COP27 and the G20, the Alliance called on governments to:
- Set bold ambitions and deliver on commitments
Deliver on the promise of the Glasgow Climate Pact and commit to ambitious Nationally Determined Contributions aligned with the Paris Agreement and translate these into plans and policies that at least halve global carbon emissions by 2030 and contribute to the global net zero goal by 2050.
- Accelerate the transition
Reduce the green premium of low carbon technologies for hard to reduce sectors by unlocking blended finance (concessional loans, guarantee mechanisms and others), developing innovative sustainable financing mechanisms, integrating climate and sustainability criteria in public procurement and promoting alignment of international standards for processing technologies.
- The focus is on action. Recognizing that many solutions already exist, there is an urgent need to:
1. Break down the barriers by simplifying regulations, speeding up approval processes and creating the enabling policy frameworks to accelerate the scale and deployment of these solutions. Increasing R&D spending and including digital and physical infrastructure to ensure supply meets demand are key to progress.
2. Provide incentives, including policies for emerging renewable energy and energy efficiency technologies, both on the supply and demand side, while supporting hard-to-reduce sectors with additional funding for innovation and scaling up new solutions, including circularity, carbon removal and natural climate solutions.
3. Putting a price on carbon and phasing out fossil fuel subsidies in a way that is both fair and results in their eventual elimination. Together, this will improve the competitiveness of sustainable low-carbon technologies.
4. Invest in retraining and upskilling workforce that is affected by the transition and enables more people to participate in the green economy.
- Investing in mitigation, adaptation and a just transition
Ensure that developed countries meet and exceed their $100 billion commitment and that these funds go directly to support developing countries’ efforts to mitigate and adapt to climate change. This is fundamental to building and maintaining trust between countries to tackle the climate crisis together.
- Harmonize reporting and disclosure standards internationally
Standards must be interoperable, actionable and enforceable to ensure they create trust and lasting change. Finally, market-based instruments (including carbon markets, power purchase agreements, etc.) have a critical role to play in reducing carbon emissions globally, but require better alignment and clear standards and frameworks.
The open letter is here for more information.