Happy New Year!

Reasons to be hopeful about 2024

It would be hard to argue that 2023 was the best of years. The last twelve months have been challenging and uncertain. For business leaders – like everyone else – it’s felt like we’ve spent several months in blindfolds, trying to plot a route back to growth and sustainability. But I AM optimistic about the business climate and what we can achieve if we all work together.

I am preparing to depart for Davos, and hope to have as stimulating a time as I did in Dubai attending COP28 at the end of last year. I am wishing everyone all the best for a happy and healthy 2024! Below is my report from COP and I will do the same when I'm back from Davos. Happy New Year everyone with a wish for peace and prosperity!

https://www.dhirubhai.net/posts/reginamayor_cop28-kpmg-ceooutlook-activity-7136009142053339137-rwi5?utm_source=share&utm_medium=member_desktop

At the end of last year, I was in Dubai, where I joined delegates and political leaders at COP28. The summit wasn't without controversy. When I travelled to the middle east I knew this would be a particularly difficult week. Critics will argue that an oil-rich state should have no involvement in solving the climate crisis. Others will advocate that you can’t solve problems without all stakeholders taking part in the discussions. The summit also witnessed record attendance, showcasing the heightened global interest in tackling the climate crisis by public and private organizations and individuals, but also raising environmental concerns about the impact events like COP itself may be having due to the sheer volume of people travelling across the planet to attend.

My background is in oil and gas. I work and live in Houston, Texas – a city that, like Dubai, has flourished from the profits of fossil fuels - among many other important businesses like space exploration and medicine. That doesn’t insulate me, or those around me, from the impact of climate change and the shared desire to genuinely do something that protects our planet for future generations.

Like the COPs before it, COP28 was a bumpy ride. The deadline ran over before a final deal was reached – signed by 200 nations. Crucially, the agreement now acknowledges a call for a transition away from fossil fuels. Something that many observers argued would never happen in the United Arab Emirates happened. The agreement is far from perfect and doesn’t reference the ‘phase out’ of fossil fuels many observers had called for, but it’s a step in the right direction.

Other big pledges and agreements that I feel are worth acknowledging include:

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·?????? The establishment of a Loss and Damage Fund. Like the shift away from fossil fuels, it’s been on the agenda at previous COPs, but we’ve now hit $700m in pledges from wealthier nations to support developing countries on the front line of climate change. We could even start seeing the money being put to use as early as 2024.

·?????? The Powering Past Coal Alliance. With the US joining the alliance, 75 countries are now onboard with the commitment to accelerate efforts to phase down the use of unabated coal power.

·?????? Nuclear Power. A commitment to treble nuclear power by 2050 – which now has the backing of 22 countries including the UK and France.

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https://www.dhirubhai.net/posts/kpmg_renewables-activity-7135108569393242113-Y5Bv?utm_source=share&utm_medium=member_desktop

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A big area of focus for KPMG at this year’s summit was on renewable energy. We launched a major new report, Turning the Tide on Scaling Renewables, revealing that the current pace of renewable deployments was nowhere near sufficient to achieve Paris Agreement ambitions of limiting global temperature rise to 1.5 degrees. We also identified 10 key barriers that need to be overcome to help unlock a potential renewables revolution. It was reassuring to see that, just days after our report launch, COP28 attendees reached a final agreement to treble renewable generation by 2030 and double the rate of energy efficiency improvements by 2030.

There were some clear achievements to be celebrated, but further progress is undoubtedly needed on other areas such as the formation of a global carbon market. There was also an updated framework that will see a doubling of climate finance by 2025, but previous pledges to reach $100bn by 2020 haven’t been met, so I’d urge a degree of cautious optimism.

For CEOs and other business leaders, COP matters. The decisions made by world leaders will impact every life on this fragile planet. Despite facing much of the criticism in recent years, businesses are often leading the way in trying to find genuinely innovative solutions – whether it’s being more transparent with climate reporting or taking steps that go far beyond the basic legal requirements of the countries they operate in.

My diary at COP was packed. I met with civic society leaders, campaigners and fellow business leaders. Despite the nervousness about this year’s summit, there was real optimism and a sense that every single person was laser-focused on acting and acting now.

https://www.dhirubhai.net/posts/john-mccalla-leacy_innovation-climateaction-cop28-activity-7136621828227178496-t9TN?utm_source=share&utm_medium=member_desktop

I’m proud of what KPMG is doing in the space. Watching colleagues like John McCalla-Leacy, KPMG’s Head of Global ESG, passionately speak at the UN Global Innovation Hub about the need for everyone to work together to drive change motivated and inspired me.

On my journey back to the United States, I stopped in London to meet with fellow members of KPMG’s Global Board. We were joined by Leigh-Ann Russell, Chief Technology and Innovation Officer at BP. She shared her company’s strategy to use AI and innovation to support the energy transition.

https://www.dhirubhai.net/posts/reginamayor_this-week-i-had-the-pleasure-of-being-invited-activity-7140075116603863040-HNYl?utm_source=share&utm_medium=member_desktop

COP28 may have come to an end, but the conversations and – crucially – actions will continue. It’s important to remember that COP is not a single one-off event. Each year, some progress is made. We need to go further, but gradual progress is being made. Another oil-rich nation will take the lead at COP29 in 2024 – Azerbaijan. Again, we’ll hear criticism and support for a country that has benefited from fossil fuels taking part in the conversation. Crucially, we all need to get round the table. Every single one of us has a role to play in driving positive change – that includes you!

I’ll leave you with the LinkedIn post my colleague, Mike Hayes, Global Head of Decarbonization at KPMG, shared at the start of COP28. It includes links to some of the great thought leadership we created during the summit, but more importantly it sums up the role organizations like KPMG have. We’re there to LISTEN. If we can all do one thing in 2024, perhaps pausing, listening and reflecting on what we can do to drive positive change will truly make a difference.

https://www.dhirubhai.net/posts/michael-hayes-kpmg_kpmg-cop28-agenda-activity-7130961059363856385-6Chk?utm_source=share&utm_medium=member_desktop

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