Climate Ambition: companies with combined market cap of $1.3 trillion step up to new level

Twenty-eight companies with a total market capitalization of $1.3 trillion are stepping up to set a new level of climate ambition in response to a call-to-action campaign ahead of the UN Climate Action Summit on 23 September.

The companies have committed themselves to more ambitious climate targets aligned with limiting global temperature rise to 1.5°C above pre-industrial levels and reaching net-zero emissions by no later than 2050.

First movers include Acciona, AstraZeneca, Banka BioLoo, BT, Dalmia Cement Ltd., Eco-Steel Africa Ltd., Enel, Hewlett Packard Enterprise, Iberdrola, KLP, Levi Strauss & Co., Mahindra Group, Natura &Co, Novozymes, Royal DSM, SAP, Signify, Singtel, Telefonica, Telia, Unilever, Vodafone Group PLC and Zurich Insurance, amongst others, collectively representing over one million employees from 17 sectors and more than 16 countries.

Of the 28 companies, BT, Hewlett Packard Enterprise, Levi Strauss & Co. and SAP already have 1.5°C-aligned reduction targets covering greenhouse gas emissions from their operations.

“Climate leadership has never been more important than it is right now, and it is inspiring to see so many diverse companies and brands boldly raising their ambitions,” said Lise Kingo, CEO and Executive Director of the UN Global Compact. “Leading companies are already proving that 1.5°C-compliant climate targets are possible, and I encourage all businesses to seize this opportunity to position themselves at the forefront of this movement and contribute to the achievement of the Sustainable Development Goals.”

The commitments of the 28 companies heed the most recent report by the Intergovernmental Panel on Climate Change (IPCC), which warned of catastrophic consequences should global warming exceed 1.5°C.

“The UN Secretary-General has called on leaders to come to the Climate Action Summit in September with clear plans for major cuts to emissions on the pathway to a zero-net emissions economy by 2050,” said Ambassador Luis Alfonso de Alba, the UN Secretary-General’s Special Envoy for the Climate Action Summit. “It is very encouraging to see these climate leaders in the global business community taking action, both to help tackle the climate emergency and because taking climate action presents huge opportunities for early movers. By sending strong market signals, these companies are showing Governments that they need to urgently ramp up their national plans in line with the latest climate science.”

Building a prosperous, net-zero carbon economy by 2050 requires both business leadership and ambitious Government policies. By setting policies and targets in line with a 1.5°C trajectory, Governments give business the clarity and confidence to invest decisively in the zero-carbon economies of the future.

The companies raising the bar for corporate climate ambition are committed to setting science-based targets through the Science Based Targets initiative (SBTi), which independently assesses corporate emissions reduction targets against the latest climate science. To date, 600 of the world’s largest businesses are setting science-based greenhouse gas emissions reduction targets aligned with the Paris Agreement. In April 2019, the SBTi released new target validation resources to enable companies to set targets consistent with 1.5°C.

“The science is clear: To limit the catastrophic impacts of climate change, we must ensure warming does not exceed 1.5°C. The ambition is high, but it’s achievable — and science-based targets give companies a roadmap for getting there,” said Paul Simpson, SBTi Board Member and CEO of CDP. “We urge all companies to seize this chance to align their business with a 1.5°C future and drive forward the transition to a net-zero carbon economy.”

The historic call-to-action issued in June came in the form of an open letter addressed to business leaders and signed by 25 global leaders, including María Fernanda Espinosa Garcés, President of the UN General Assembly, Lise Kingo, CEO and Executive Director of the UN Global Compact, Patricia Espinosa, Executive Secretary of the UN Framework Convention on Climate Change, Christiana Figueres, Co-Founder of Global Optimism, John Denton, Secretary-General of the International Chamber of Commerce, and SDG Advocate Paul Polman, Co-Founder of IMAGINE.

Ambitious CEOs who commit their companies to a 1.5°C trajectory in support of a net-zero future will be recognized at the UN Global Compact’s Private Sector Forum as part of the UN Climate Action Summit on 23 September.

As a special initiative of the UN Secretary-General, the United Nations Global Compact works with companies everywhere to align their operations and strategies with ten universal principles in the areas of human rights, labour, environment and anti-corruption.

Launched in 2000, the UN Global Compact guides and supports the global business community in advancing UN goals and values through responsible corporate practices. With more than 9,500 companies and 3,000 non-business signatories based in over 160 countries, and 70 Local Networks, it is the world’s largest corporate sustainability initiative.
 

UN announces 2019 Climate Action Summit “Clean Air initiative”

Ahead of the upcoming 2019 Climate Action Summit, the United Nations, the World Health Organization (WHO), the United Nations Environment Programme (UN Environment) and Climate and Clean Air Coalition have announced the “Clean Air Initiative”, calling on governments at all levels to join the Initiative.

The “Clean Air Initiative” calls on national and subnational governments to commit to achieving air quality that is safe for citizens, and to align climate change and air pollution policies by 2030.

According to WHO, each year, air pollution causes 7 million premature deaths, of which 600,000 are children.

According to the World Bank, air pollution costs the global economy an estimated US$5.11 trillion in welfare losses, and in the 15 countries with the highest greenhouse gas emissions, health impacts of air pollution are estimated to cost more than 4 per cent of GDP.

Meeting the Paris Agreement on climate change, however, could save over 1 million lives a year by 2050 and yield health benefits worth an estimated US$54.1 trillion – about twice the costs of mitigation – through reduced air pollution alone.

Governments at all levels can join the Clean Air Initiative by committing to specific actions, including: 

• Implementing air quality and climate change policies that will achieve the WHO Ambient Air Quality Guideline values.
• Implementing e-mobility and sustainable mobility policies and actions with the aim of making a decisive impact on road transport emissions.
• Assessing the number of lives that are saved, the health gains in children and other vulnerable groups, and the avoided financial costs to health systems that result from implementing their policies.
• Tracking progress, sharing experiences and best practices through an international network supported by the Breathelife Action Platform.

The announcement was made by the Secretary-General's Special Envoy for the Climate Action Summit, Ambassador Luis Alfonso de Alba, in New Delhi, India, following two days of meetings with representatives of governments, business and civil society.

“The climate crisis and the air pollution crisis are driven by the same factors and must be tackled by joint actions. Governments at all levels have both an urgent need and huge opportunity not only to address the climate crisis, but also to improve the health and save the lives of millions of people around the world, all while making progress on the Sustainable Development Goals,” said Ambassador de Alba. “We call on governments at all levels to step up to this challenge and bring powerful commitments and concrete plans to the upcoming Climate Action Summit.”

Dr Tedros Adhanom Ghebreyesus, Director-General of WHO said: “Air pollution kills about 7 million people every year, and 9 out of 10 people globally breathe air that is not fit for human consumption. We need to agree unequivocally on the need for a world free of air pollution. We need all countries and cities to commit to meeting WHO standards for air quality.”

"The Secretary-General’s Climate Summit this year will be an important opportunity to secure strong commitments and investments in proven interventions for climate-resilient health systems, and in air quality monitoring and policy implementation.”

United Nations Secretary-General António Guterres is convening the Climate Action Summit in New York on 23 September and has called on government, business and civil society leaders to bring bold actions and much greater ambition.

The Clean Air Initiative has been developed as part of the Social and Political Drivers Action Area of the 2019 Climate Action Summit, led by WHO, together with the Governments of Peru and Spain, the UN Department of Economic and Social Affairs, and the International Labor Organization.

The call to improve air quality is part of a wider movement to harness social and political drivers to improve people’s health, reduce inequities, promote social justice and maximize opportunities of decent work for all, while protecting the climate for future generations. At the Climate Action Summit, the coalition for Social and Political Drivers will commit to a healthier and safer future for all and call on governments and institutions to commit to act on health.
 

Ghana signs landmark deal to cut carbon emissions and reduce deforestation

Ghana ­ has become the third country to sign a landmark agreement with the World Bank that rewards community efforts to reduce carbon emissions from deforestation and forest degradation.

Ghana’s five-year Emission Reductions Payment Agreement (ERPA) with the Forest Carbon Partnership Facility (FCPF) Carbon Fund, which is administered by the World Bank, unlocks performance-based payments of up to US$50 million for carbon emission reductions from the forest and land use sectors. 

Mozambique and the Democratic Republic of Congo have also signed ERPAs over the past ten months, with other Carbon Fund countries expected to sign similar agreements in the next year.

In Ghana, forest degradation and deforestation are driven primarily by cocoa farm expansion, coupled with logging and a recent increase in illegal mining.

Working in close partnership with the Forestry Commission, Cocoa Board, and private sector, Ghana’s program with the FCPF Carbon Fund seeks to reduce carbon emissions through the promotion of climate-smart cocoa production.

“The program's two central goals – reducing carbon emissions in the forestry sector and producing truly sustainable, climate-smart cocoa beans – make it unique in Africa and the first of its kind in the cocoa and forest sectors worldwide. This program is helping to secure the future of Ghana’s forests while enhancing income and livelihood opportunities for farmers and forest-dependent communities,” said Kwadwo Owusu Afriyie, Chief Executive of Ghana’s Forestry Commission.

In Ghana’s ERPA, the FCPF Carbon Fund commits to making initial results-based payments for reductions of 10 million tons of CO₂ emissions (up to US$50 million). Ghana’s ERPA also specifies on carbon emission baselines, price per ton of avoided CO₂ emissions, and a benefit-sharing mechanism that has been prepared based on extensive consultations with local stakeholders and civil society organizations throughout the country.

Ghana’s emission reductions program is anchored in the country’s national strategy for reducing emissions from deforestation and forest degradation (REDD+), and is well-aligned with relevant national policies and strategies, including Ghana’s Shared Growth and Development Agenda, the National Climate Change Policy, the National Forest and Wildlife Policy, the National Gender Policy, and Ghana’s nationally-determined contributions to the UN Framework Convention on Climate Change.

Ghana’s emission reductions program area, located in the south of the country, covers almost 6 million hectares (ha) of the West Africa Guinean Forest biodiversity hotspot. The wider program area covers 1.2 million ha of forest reserves and national parks and is home to 12 million people.  

An increase in cocoa production has historically meant more forests are cut to accommodate new cocoa seedlings, but this trend could be reversed to improve Ghana’s record as one of the highest deforestation rates in Africa.

Through the program, the government will focus on selected deforestation hotspot areas and help farmers and communities increase cocoa production there using climate-smart approaches. More sustainable cocoa farming will help avoid expansion of cocoa farms into forest lands and secure more predictable income streams for communities. These combined actions will help Ghana to meet its national climate commitments under the Paris Agreement.

This work leverages support from other initiatives, including from World Bank programs focused on forest rehabilitation, social inclusion, climate-smart agriculture, and sustainable land and water management.

The program also works closely with the Cocoa and Forests Initiative, which is an active commitment of top cocoa-producing countries with leading chocolate and cocoa companies to end deforestation and restore forest areas, through no further conversion of any forest land for cocoa production.

“It’s exciting to see the level of stakeholder engagement Ghana has been able to achieve with its emission reduction program, particularly with the private sector. Some of the most important cocoa and chocolate companies in the world, including World Cocoa Foundation members such as Mondelēz International, Olam, Touton and others, as well as Ghana’s Cocoa Board have committed to participating in the program,” said Pierre Frank Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone.

More than 30 stakeholder consultations, meetings, and workshops with over 40 institutions were conducted in the planning, design and validation of the program. Part of this outreach included developing and implementing a program-wide Gender Action Plan to sensitize stakeholders regarding the key role women play in sustainable land use and their right to benefit equally from results-based payments.