Prepared for Valentina F. | Delivered November 27, 2021
Provide information around the outcomes of the COP26, especially as it pertains to private companies.
Early research indicates data is widely available on this topic.
agreed to keep working to cut their emissions by 2030, known as nationally determined contributions. The conference called on many countries to strengthen their targets to better align them with the Paris Agreement's goals.
Negotiators also finally made headway on solidifying standards for the
international carbon market
also used the conference to announce commitments and innovations on things like clean technology, solar, ending the use of coal and more.
Related to Private Companies
Investors, businesses and other non-state actors also participated in COP26.
Over 2,000 companies
committed to new science-based targets for reducing their emissions.
Just prior to the conference, new
for companies to set net-zero targets was released.
To assist with this, the UN Secretary-General, Antonio
a high-level expert group that will establish clear standards for
As countries finally acknowledged that fossil fuel subsidies were
, and the deal called to end them. This will
companies that currently receiving such subsidies.
Large financial firms also made a commitment to
shift their portfolios
to net-zero by 2030.
concludes that the commitments that came out of COP26 signal that net-zero is now a cornerstone operating principle for business.
Actions to be Taken
Following the COP26, private companies may wish to or feel obliged to take action on these outcomes. According to
, companies can get ahead of the curve by joining coalitions that exist now or organizing one themselves that encourage cross-sector engagement.
As financial portfolio alignment has also gained significant traction, the need for transparency becomes even more important. Companies need to release
clear, detailed plans
on how they will achieve their net-zero commitments. For example, UK chancellor of the exchequer confirmed they would require all UK-listed companies to release plans by 2023, but those who do so early can distinguish their companies.
This is especially true because by most
, many large company's targets are seen as generally following, lacking the action to actually achieve them.
Additionally, getting out in front on net-zero commitments can also help mitigate potential shortages and price volatility.
contracts early can secure the necessary materials to ensure production capacity.
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