COP27: where the rubber hits the road, as we enter ‘implementation phase’ and why business and brands should take note

The outcomes from COP27 in Egypt this month should matter to businesses and brands because these peak climate conferences provide a cue to governments on policy making, on legislation and increasingly to consumers/citizens. The outcome influences the decision-making of consumers in everyday life from where they shop, to what groceries and other items they buy, as well as where and how they live.

What has been touted as the major achievement of COP27, is the ‘breakthrough’ agreement for developed countries to provide “loss and damage” funding for vulnerable countries hit hard by climate disasters. While the ‘devil is in the detail’ on this commitment, all are in agreement that this has been the big win of the event.

This is good news given the UN Office for Disaster Risk Reduction cited that if we continue on this trajectory with severe droughts and flooding events, by 2030 the world will face 560 disasters per year. This will push more than 100 million people into poverty.

The other positive headline of the event was that for the first time, young people in particular were given greater prominence, making their voices heard through the first-of-its-kind pavilion for children and youth, as well as the first-ever youth-led Climate Forum. And women also got a seat at the table, as well as Indigenous voices.

The direct intersection of the climate crisis and the health and wellbeing of humans is becoming ever more apparent. A 2022 Deakin University study highlights the critical role of ‘compassionate caring’ in the midst of protracted crisis such as climate induced chronic poverty, deprivation and daily atrocity. We also hear of the impact of climate anxiety on children and young people.[i] A 2021 study published in The Lancet showed 59 per cent of respondents were very or extremely worried, whereas 84 per cent were moderately worried. 45 per cent said their feelings about climate change negatively affected their daily life and functioning.[ii]

While there is still much more work to be done, COP27 has at least boldly underlined that this is where the rubber hits the road. In their words, we now enter ‘implementation phase’. The urgency was palpable and more importantly, is very palpable on the street.

Scientists have told us that should temperatures spike above 1.5°C for a significant period of time, critical ecosystems on which we depend (such as the Great Barrier Reef) would be even more severely damaged, or destroyed. This could trigger abrupt, dangerous and irreversible changes to the climate system.[iii]

In its summation of the event, the UN described the event as follows:

“Set against a difficult geopolitical backdrop, COP27 resulted in countries delivering a package of decisions that reaffirmed their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels. The package also strengthened action by countries to cut greenhouse gas emissions and adapt to the inevitable impacts of climate change, as well as boosting the support of finance, technology and capacity building needed by developing countries.”[iv]

So, what can Australia do now and what action can business take to help stick to 1.5C?

Last month, the UN’s climate watchdog released a report saying there is a 96 per cent probability we’ll pass the critical 1.5 degree global warming threshold in the coming decades.[v] 

The Australian Climate Council says that our local response must match the scale and urgency of this worsening situation. “Action to deeply reduce emissions this decade will determine whether the climate system can or cannot be stabilised at warming of well below 2°C …while action is increasing in Australia and world-wide, it remains too slow and not enough.

“Australian governments, businesses, industries and communities can and must cut emissions deeply. Given the scale of the global emissions reduction task and taking into account Australia’s very high level of emissions and our huge renewable energy resources, Australia should aim to reduce emissions by 75 per cent below 2005 levels by 2030 and reach net zero emissions by 2035.”

How much influence do these UN Climate Conferences actually have, and what does this mean for businesses and brands?

Kantar, a leading global data and insights consultancy found in a recent surveythat globally, 2 out of 3 have heard of COP27. Real familiarity with the event is limited to a third of populations with disparities across countries. In the UK, which hosted COP26, 51 per cent of Britons say they have a good understanding of what the conference is about. This figure reduces to as low as 13 per cent in Australia.[vi]

The survey also found that if a majority think COP27 will contribute to moving the dial in the right direction, only 22 per cent globally believe that the event will lead to significant progress in tackling climate change.

An overwhelming majority of the public, 86 per cent globally, agree there is a need for urgent action to address climate change. So, the low familiarity with the event should not be mistaken for a lack of interest and sense of urgency in solving climate issues.

Kantar also found that 64 per cent of the public holds business accountable for helping to tackle climate change. 77 per cent say that businesses’ plans to tackle climate change are either ambitious but not to the scale of the challenge or they are not ambitious full stop and only 12 per cent are firmly in agreement that most businesses are taking strong actions to tackle climate change and 38 per cent think that they are worsening it.

These are sobering statistics and we understand that this is a very challenging and difficult time for businesses. Sustainability for any business effectively requires a major change management strategy and big shift in processes. To straddle this delicate balance requires open-mindedness, creativity, energy and investment. But the good news is that business is up to the challenge.

There is a mandate from the public to see more leadership and initiative from the corporate world and you don’t need to look too far to see this is already happening across the globe. Take for example Hewlett Packard and its energy-efficient super computers; Patagonia is now the beacon of ‘sustainable capitalism’ turning the ‘for profit’ concept on its head, as all profits flow through to climate change; BT’s products and services helped customers save 11.7 billion tonnes of carbon, and of course the FMCG giant Unilever has sustainability high on its product agenda.

This is why COP27 should matter to businesses. These kinds of statistics are a public barometer on what is worrying people, their concerns and to be relevant and keep pace with this, it’s important that businesses increasingly adopt a meaningful, embedded sustainable model of operation.

As Executive Secretary of UN Climate Change, Simon Stiell put it, “Every single milestone matters and builds momentum… We need some big system shifts, which requires finance, politics and governance to shift.”

To gain a deeper understanding on how your brand can plot a path to a sustainable way of doing good business during these challenging times, please contact us to tap into our expertise on all things sustainability.

[i] Stories from Protracted Crisis: Perspectives on the future of palliative care. Deakin University Nov 2022.

^[ii] Climate anxiety in children and young people and their beliefs about government responses to climate change: a global survey. The Lancet Planetary Health Dec 2021.

[iii] Climate Council Report

^[iv] Decisions taken at the Sharm El-Sheikh Climate Change Conference – Advance unedited versions. United Nations Climate Change Nov 2022.

^[v] Emissions Gap Report 2022. UN Environment Programme October 2022.

^[vi] Sustainability Sector Index 2022: what matters to consumers in your sector. Kantar 2022.