Markets are rewarding decarbonization because of its many benefits. The
need for carbon data isn't just being driven by securities regulation, it is
being driven by market rewards, consumer preferences, financial costs and
incentives, reputational benefits, and a recognition that higher carbon
emissions are a reflection of higher risk.
Common worries and challenges surrounding decarbonization agendas for firms
include the upfront costs of efficiency projects and renewable power,
overcoming data complexity, and lack of buy-in from integral stakeholders and
organization leaders. Despite these hurdles in altering current operational
strategies, prioritization of sustainability will create a competitive advantage,
future-proof your assets, and allow you to better navigate the complex landscape
of net zero commitments, regulations, reporting requirements, and incentives
across local, national, and global regions.
WHY: THE VALUE OF DECARBONIZING
Sustainability & Energy Management Simplified
THE SCIENCE
The severe economic and financial consequences of climate change are clear.
Firms cannot assume that rapid technological developments will solve the
problem, or that the macroeconomic effects of climate change are too uncertain
and complex to deal with in the short term when inflation and public debt
appear to be a higher priority. The fact is, the effects are certain now.
Infrastructure damages, coupled with skyrocketing insurance costs, paint a grim
picture. More than 90% of the world's largest companies will have at least one
asset financially exposed to climate risks such as water stress, wildfires, or floods
by the 2050s, according to research by S&P Global. Assets can include factories,
warehouses, and data centers.
The 2015 Paris Agreement set decarbonization targets to limit global warming to
well below 2°C above pre-industrial levels with the ambition for the global
economy to reach net zero by 2050. Businesses of all sizes have a role to play in
the global effort to decarbonize and reduce the impacts of climate change —
both as contributors and as those affected by climate change. To reach this
ambitious goal, firms must cut greenhouse gases (GHGs) and reach net-zero
emissions by 2050.
