Addressing climate change requires a concerted effort from both businesses and governments. Our CEO, Hein Schumacher, and former UNFCCC Executive Secretary, Patricia Espinosa, outline how working together can accelerate emission reductions.
Next week, global leaders will convene at the United Nations General Assembly in New York to discuss critical issues, with climate change being a challenge shared by all nations.
We acknowledge the immense responsibility we hold in combating the climate crisis within our respective sectors. While individual actions are crucial, they are not sufficient. Therefore, we are calling for a unified approach between businesses and governments.
The Role of Governments: Aligning NDCs with the 1.5°C Goal
Governments must develop Nationally Determined Contributions (NDCs) that are aligned with the 1.5°C target, aiming for the highest level of ambition. These policies should foster business opportunities for decarbonization by providing robust support for private investment.
Key elements NDCs should include:
- Ambitious commitments to reduce greenhouse gas emissions.
- Initiatives to conserve and restore forests.
- Goals and incentives to promote regenerative agriculture practices.
- Strategies to accelerate the shift to renewable and recycled materials in chemical production.
Simultaneously, business leaders must support these efforts by creating and implementing climate transition and investment plans that align with the 1.5°C target.
The Economic Rationale for Climate Action
Since Nicholas Stern’s groundbreaking review on the economics of climate change, it has been clear that the cost of inaction far outweighs the cost of addressing the issue. As the climate crisis worsens, it will disrupt industries globally, affecting business performance, employment, quality of life, and overall economic stability.
However, there is a more optimistic path forward. The Paris Agreement could unlock a $23 trillion global investment opportunity in emerging markets. If we succeed in limiting global warming to 1.5°C, the global economic impact of climate change could be reduced by two-thirds.
The Need for Public and Private Sector Investment
Unilever is committed to climate action, investing €150 million in decarbonizing its manufacturing processes over the next three years, and dedicating €1 billion to climate, nature, and circular economy projects by 2030. Yet, no single company can create the level of change required. A united front between businesses and governments is essential.
Calling for Bold Action from Governments and Businesses
Ahead of the UN General Assembly, we emphasize the urgent need for increased national climate ambition to stay on track with the 1.5°C target. Business leaders must actively support these efforts.
Governments must make courageous decisions, recognizing that their actions over the coming months will shape the future. The first step is to agree on ambitious NDCs. The second is to implement these policies through legal, regulatory, and policy frameworks that encourage business decarbonization.
In turn, businesses must signal their support for higher national climate targets by committing to science-based goals, investing in decarbonization efforts, and using their influence to advocate for stronger climate action.
No Time for Half-Measures
In a world increasingly divided, complacency and inertia will lead to avoidable disasters. But with the right mix of ambition and implementation, a more prosperous future is achievable.
Policymakers and business leaders must understand the risks we face and make decisions that reflect this reality. The world is watching, and the choices made this year will determine the future of our planet for generations to come.
