EXPERT EYE SUSTAINABILITY
A moment like no other, calling for faster, bolder action On Earth Day 2022, Mindy Lubber, President and CEO of the sustainability nonprofit organization Ceres, encourages industries worldwide to invest in our planet Written by: Mindy Lubber, CEO and President, Ceres
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he risks posed by the climate crisis are rapidly becoming reality. We now know that no one is safe from the fires, floods, hurricanes, heatwaves, and droughts that have devastated nations across the globe. The latest climate science shows that without dramatic action within the next eight years, we will reach a tipping point that guarantees a catastrophic future for our planet and economy. This month’s latest report from the Intergovernmental Panel on Climate Change provides the starkest assessment yet of just how far we are today from the level of action required to keep warming to 1.5 degrees Celsius. Yet the report also affirms that we have the tools and capital required to take this action. It will take an immediate, concerted response from all market actors – investors, companies, policymakers, consumers, employees, and regulators – to respond to this crisis while we can still avoid the worst impacts of the climate crisis and seize the massive opportunities that come with decisive action. 8 | North America Outlook issue 09
Companies can start by decarbonizing not only their own operations, but their full value and supply chains, and improving their water stewardship practices to better safeguard freshwater supplies. Investors and financial institutions can work to rapidly redirect flows of money toward clean energy and clean water solutions, rather than fossil fuels. We must ensure global capital flows to the right places. That’s why the recent landmark draft rule from the US Securities and Exchange Commission to mandate climate risk disclosure for all publiclytraded companies is so important. It would level the playing field for companies, allow investors to better protect their investments, and catch the US up with many countries around the world, where mandatory disclosure is already law. Companies and investors alike can voice their support for this critical proposal. Last year, the largest number of investors ever – 733 investors managing $52 trillion in assets – joined us in calling for mandatory disclosure.
Disclosure provides insight, but it has to be paired with strong tools to drive urgent, bold, ambitious action. Climate Action 100+, the world’s largest investor engagement initiative on climate, found in its latest Net Zero Company Benchmark that while 69 percent of the initiative’s focus companies – many of the world’s largest emitters – have set net zero goals, the vast majority have not set adequate medium-term emissions reduction targets or fully aligned their capital expenditures with the goals of the Paris Agreement. There has been progress – but it’s not at the pace and scale to meet the crisis we face. Every company must issue a climate action plan aligned with operating in a net zero emissions economy, and raise their ambition to meet the standards
