Tackling climate change requires a united effort between business and government. Hein Schumacher, CEO of Unilever, and Patricia Espinosa, former UNFCCC Executive Secretary, discuss how this partnership can accelerate emission reductions.
Next week, global leaders will convene at the United Nations General Assembly in New York, where each nation must address urgent challenges, with climate change at the forefront.
We recognize our shared responsibility to confront the growing climate crisis in our respective sectors. While individual actions are necessary, they alone are not enough. This is why we are calling for a collaborative effort between businesses and governments.
The Role of Governments Governments must establish Nationally Determined Contributions (NDCs) aligned with the 1.5°C target, setting ambitious goals that enable business decarbonization and incentivize private investment.
Effective NDCs should include:
- Aggressive greenhouse gas (GHG) emission reduction targets
- Commitments to conserve and restore forests
- Policies to promote regenerative agriculture practices
- Strategies to transition to renewable and recycled feedstocks in chemical industries
In parallel, business leaders must support these government efforts by committing to 1.5°C-aligned climate transition and investment plans.
The Economic Case for Climate Action Since Nicholas Stern’s influential review on the economics of climate change, it’s been clear that the cost of inaction far exceeds that of taking decisive steps. As climate change worsens, it will disrupt industries, affect business performance, and threaten socio-economic stability globally.
However, the Paris Agreement presents an alternative path, offering a potential $23 trillion investment opportunity in emerging markets. By limiting global warming to 1.5°C, we could reduce the economic costs of climate change by two-thirds.
Public and Private Investment is Key Unilever recognizes this urgency, investing €150 million in manufacturing decarbonization over the next three years and €1 billion in climate, nature, and circular economy projects by 2030.
Yet, no single business can achieve the scale of change required. A united effort across both sectors is essential to combat climate breakdown.
A Call for Unified Action Ahead of the UN General Assembly, we stress the importance of enhanced national climate ambitions and the critical role businesses play in supporting these efforts.
Government leaders must make bold decisions now, understanding that the choices made in the coming months will define the future. They need to agree on ambitious NDCs and put in place the legal and regulatory frameworks necessary to drive business decarbonization.
Business leaders can help by signaling their demand for stronger national climate targets and committing to delivering on them—whether by setting science-based targets, investing in decarbonization, or using their influence to drive change.
We call on every business that values the future of our planet—and their commercial success—to advocate for more ambitious NDCs and align their strategies accordingly.
The Time for Half-Measures is Over In a world marked by division and inertia, complacency is steering us toward avoidable disasters. However, with the right blend of ambition and action, a more prosperous and sustainable future is within reach.
Both policymakers and business leaders must understand the stakes and make decisions that reflect the gravity of the climate crisis. The world is watching, and the decisions made this year will define the trajectory of our planet for generations to come.
