Author: Zeng Lu
Climate change is a global challenge facing mankind. What does climate change mean for business? How will companies promote carbon neutrality?
Total words2380About6minutes
Climate change creates risks and opportunities for businesses
Since the Industrial Revolution, economic growth and strong demand for fossil energy have continued to push up global carbon dioxide emissions. Climate change intensifies extreme weather such as droughts, heat waves, heavy rains, and floods, and leads to serious consequences such as rising sea levels and loss of biodiversity. If left unchecked, climate change will have a comprehensive impact on the earth and ultimately endanger human survival and development.
The Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5°C predicts that by the end of this century, controlling global warming below 2°C will reduce the impact of climate change on human well-being, ecosystems and sustainable development. risks; limiting global warming to 1.5°C will have more benefits for humans and ecosystems.
Climate change presents both risks and opportunities for businesses. Climate change poses an unprecedented threat to corporate operations, business models, value chains, etc. Extreme weather events caused by climate change increase the business risks faced by enterprises, technological, market and environmental changes caused by climate change pose transformation risks to enterprises, and climate legislation and related litigation highlight the regulatory risks faced by enterprises.
At the same time, climate change also provides new opportunities for companies to improve their competitiveness and open up new markets. Companies are reducing costs by improving energy efficiency, turning to renewable energy to enhance supply chain resilience, and developing new low-carbon emission reduction products and services to innovate business models.
Businesses are the backbone of achieving carbon neutrality
Enterprises are an important source of greenhouse gas emissions and the backbone of achieving carbon neutrality. Over the past half century, the world's 20 largest emitters have emitted nearly 500 billion tons of carbon, accounting for approximately 35% of total global emissions during that period.
In June 2021, the United Nations Compact and the Boston Consulting Group jointly released the "Corporate Carbon Neutrality Roadmap - Path to Implementing the Paris Agreement and the United Nations Sustainable Development Goals" report, proposing to review and set net-zero goals, optimize operational energy efficiency, and increase Nine key measures include the use of renewable energy in business operations, the use of green buildings, the promotion of green working methods, the decarbonization of supply chains, the design of sustainable products, the adoption of downstream green logistics services, and the launch of products and services that help decarbonize other industries. , supporting companies to achieve carbon neutrality.
How can companies promote carbon neutrality?
More and more companies are setting and implementing climate goals such as carbon neutrality to actively respond to climate change. In 2000, 54% of the Fortune 500 companies set greenhouse gas emission reduction targets, and 17% of the Fortune 500 companies set carbon neutrality or net-zero emission targets. As of June this year, nearly 20 companies in China have announced carbon neutrality goals, involving industry, energy, finance, technology, manufacturing and other industries.
Google: The world’s first major company to achieve carbon neutrality
Google is a multinational technology company headquartered in the United States. According to figures provided by Google, the company became the first major company in the world to achieve carbon neutrality in 2007. Google achieved net-zero emissions in 2017 and has pledged to be powered entirely by renewable energy by 2030. In 2020, Google issued US$5.75 billion in sustainability bonds, setting a new global corporate sustainability bond issuance record.
Google has fully integrated carbon neutrality and sustainable development into its strategy and core business, designed data centers with high efficiency and low environmental impact, embedded circular economy principles into server management and product design, made full use of renewable energy in global facilities, and built Zero-carbon and sustainable workplaces, equipment and services make full use of recyclable or renewable materials, and launch climate-friendly products such as Nest thermostat energy-saving power supplies.
Orsted: Traditional energy companies have successfully transformed into green pioneers
Denmark's Ørsted installs one-third of the world's offshore wind turbines and is one of the world's largest green energy companies. Orsted has pledged to achieve carbon neutrality by 2025 and is expected to become the world's first major energy company to achieve net-zero emissions.
Orsted was formerly known as Dong Energy, which was mainly engaged in fossil energy business. Its carbon emissions once accounted for one-third of Denmark's national emissions. In 2009, Dong implemented the 85/15 transformation vision and planned to transform at least 85%'s business into green energy within 30 years. By 2018, Orsted's green energy production had reached 75% of total production, and its CO2 emission intensity had been reduced by 72%. By 2025, green energy will account for 99% of Orsted Energy's total production, and carbon emission intensity will fall by 98% compared with 2009 levels. Business transformation has propelled Orsted to become one of Europe's most valuable energy companies.
Lenovo: 92% will reduce emissions in 10 years and strive to achieve net-zero emissions by 2050
China Lenovo Group's sustainable development strategy is reflected in products, operations, technology and other aspects. By adopting energy-saving, environmentally friendly and green processes such as changing design packaging, Lenovo reduced greenhouse gas emissions by 92% in the 2019/20 fiscal year compared with the 2009/10 fiscal year. Lenovo has proposed the goal of reducing operational carbon emissions by 50% and reducing the carbon emission intensity of some value chains by 25% by 2030.
Lenovo's low-carbon development strategy includes creating energy-saving and environmentally friendly green products, using clean energy, recycling electronic waste, promoting a circular economy, promoting energy conservation and environmental protection, and green technology innovation. In addition, Lenovo has helped more companies reduce greenhouse gas emissions by providing nearly 200 large companies such as Sinopec, Guodian, and Dongfeng with intelligent solutions that improve quality and efficiency and help save energy and reduce emissions.
Actively promote the global response to climate change
In addition to setting and implementing climate goals, some companies are also actively pushing governments and business communities to address climate change. In May 2020, the CEOs of 155 multinational companies with a total market value of more than US$2.4 trillion jointly signed a statement reiterating that they will take climate action based on science and urging governments to incorporate the latest climate science into their economic recovery plans after the COVID-19 epidemic. .
In April 2021, more than 160 financial companies around the world established the Glasgow Net Zero Financial Alliance (GFANZ). With more than US$70 trillion in assets under management, GFANZ is committed to mobilizing trillions of dollars to support building a global zero-emissions economy and achieving the goals of the Paris Agreement.
First published: NGO Observation
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