With the clock ticking in the race to net zero, it’s time for businesses to step up

With COP26 less than a week away it’s time for our global community of governments, businesses, NGOs and citizens to come together and agree the actions that will ensure we collectively achieve the goal of limiting global warming to 1.5 degrees Celsius. Many nations have set aggressive targets to reduce carbon emissions, including the UK which has committed to cut carbon emissions by 78%?by 2035.?

Even though businesses have a fundamental role to play in the race to net zero, many aren’t stepping up. According to our recent?Reaching Net Zero by 2050? report on 1000 large European companies, only one third have committed to reach net zero by 2050.??Just 5% are on track?achieve their net-zero ambitions across scope one and two emissions, let alone value chain emissions. The UK is leading Europe:?37% of analysed UK companies have committed to net-zero targets. But it’s clear that more work needs to be done. To put it bluntly, business needs a kick!

To keep a 1.5?C future within reach will?require a step-change in technology innovation as well as ongoing cross-industry collaboration to advance and deploy the required tech. In fact,?Nick Baker, the UK COP26 Unit’s deputy director for engagement, said that business needs to “turbocharge collaboration ” on climate! Coupled with this is the need for common data standards around sustainability and greater data transparency across businesses and industries.?As I mentioned during the recent?Institute for Government panel discussion , sustainability standards are difficult to get our minds around and there is currently an uneven adoption of these. Commonly understood and used standards will enable businesses to unlock the power of their technology investments, combined with the skills and talent across their organisations, to drive towards solving the climate crisis.?

I also shared my belief that biodiversity needs a bigger seat at the table at COP26. The fact that we’ve seen a dramatic decline in biodiversity over the last five decades is frankly terrifying. This isn’t just an environmental crisis, it’s an economic crisis too. The World Economic Forum estimates that $44 trillion – more than half of the world’s total GDP – is dependent on natural capital and ecosystem services. We must act now to future-proof the planet, and businesses need to think more deeply about our relationship with nature and take proactive steps to avoid biodiversity loss before it’s too late. I’m heartened that the UK government has signed the Leaders’ Pledge for Nature and hopes that COP26 will be a pivotal moment when nations and businesses commit to collaborating in new and different ways to innovate, using technology and data-driven insights. For our own part, Accenture has co-authored a first-of-its-kind ‘Nature Handbook for business’ in partnership with the Council for Sustainable Business, which supports the?Get Nature Positive ?campaign.

And biodiversity is also a great vehicle to engage the public around. Protecting nature is a much easier topic for people to grasp than some of the more nebulous aspects of carbon reduction or climate change. We know from a?recent survey ?of global consumers that a new consumer group has emerged during the Covid-19 crisis – the ‘reimagined consumer’. This group places value on health and safety, transparency and trust, having a clear purpose, the origin of products and whether they’re ethically manufactured. They’re keen to understand how the brands they buy from are operating from a sustainability point of view. Those businesses which are making commitments to protect the planet and nature – and who communicate this clearly to their customers - are meeting a real consumer need. Our research shows this is very evident in the UK, but the reimagined consumer is also a global phenomenon.?

As I look ahead to COP26 there are many reasons to be optimistic. Progress has been made. But so much more still needs to be done to deliver widespread carbon reduction at pace, to build resilience in the face of environmental disasters and to protect our planet’s biodiversity. Businesses have a vital role to play in terms of developing solutions to the climate crisis, using our technology and the passionate people in our teams to step up and make a difference. As I head to Glasgow next week, my focus will be on how Accenture can keep the 1.5?C goal alive through decarbonising our own operations and value chain as well as through our work with clients as we help them to achieve their own climate action ambitions. Together we can create meaningful change that’s good for business, good for society and good for the planet.