REFLECTIONS ON WEEK 1 AND THE REASONS TO BE POSITIVE
By Peter Conway
The reasons to be optimistic about COP 26 aren’t merely because the conference is taking place, with actual people actually attending and bathed in autumnal Glasgow sunshine for the early days. The reason to be optimistic is that a transition is well underway.
The Glasgow Science Centre is home to the “Green Zone” for COP 26 and moored on the River Clyde lies the 1946-built Waverley, the last sea-going paddle steamer, a firm nod to the City’s rich ship-building heritage.
By contrast, the entrance to the “Green Zone” shows the reality of change and progress, with hydrogen JCBs providing a welcome, alongside electric cars, buses, planes, and other clean transport options. The ongoing transition in modes of transport couldn’t be clearer and where once change was driven by speed or capacity, environmental impact is now the driver (no pun intended).
But it isn’t just transportation.
The announcements this week have ranged from availability of finance for the transition to agreements for new fuel procurement to reductions in methane emissions to tackling the blight of deforestation to supermarkets committing to reduce their carbon footprint. More significant though are the initiatives around reporting and regulatory standards that will benchmark progress and deliver transparency. It is here, with pressure on individual corporates to deliver on their commitments, that delivery will take place. And in the end, it is delivery rather than words that matter. And it’s here that the link between a CEO’s remuneration and the achievement of decarbonisation and renewable standards will take place, so cue a range of pressure groups targeting remuneration committees to optimise this link. When remuneration requires the achievement of specific climate targets you can bet that delivery will take place.
So, what does climate leadership look like?
It looks like the announcement of a 15million tonnes per year offtake agreement between Fortescue Future Industries with JCB and Ryze.
It looks like the announcement of US$130 trillion of funding committed for the achievement of “net zero” by Mark Carney for Glasgow Financial Alliance for Net Zero.
And it looks like the formation by the International Financial Reporting Standards board of the International Sustainability Accounting Board to audit targets and deliver transparency around their achievement (or not).
I’m optimistic because after the talking and the commitments we’re now benchmarking and holding accountable those responsible for delivery.
And I’m even more hopeful because it seems that we’re no longer dependent on grand inter-governmental statements with their numerous qualifications and exemptions. The leadership is coming from finance and insurance, from the legal and accounting professions, from industry and commerce and across the private sector and the leadership is gathering pace.