How the COP27 Agenda Could Shape Future Social Impact and Employee Engagement Strategies

I’ve been watching (enviously!) from the sidelines as some of my most respected sustainability colleagues and thought leaders attend the 27th United Nations Conference of Parties (COP27). Waking up each morning reaching for my Apple News+ to get the latest on ESG and climate, then perusing LinkedIn for updates trying to imagine what the key outcomes and commitments from this global event might be.?

Climate change mitigation is fundamental to strong ESG performance; Net-Zero commitments dominate corporate sustainability conversations and strategies. It’s no question that high income, developed regions have contributed the most to global CO2 emissions, with Asia, Europe and North America leading the way.?If we are going to take anything away from the lead up reports for COP27 and the concerning lack of emissions-reduction progress towards limiting global warming at 1.5 degrees, it’s that countries' long-term low-emissions development strategies and those of their key industries must remain under the microscope.

As I have poured myself into the reports and articles released over the past few weeks, there is evidence of a renewed emphasis on the impacts of climate change on developing nations. The tone of this year’s COP27 is more inclusive, with an increased focus on adaptation and vulnerability and who will pay for climate loss & damage. Contributions from wealthy countries to aid developing countries mitigate their emissions and adapt their infrastructure and communities in the face of a changing climate is a key discussion point at COP27, along with a re-evaluation of the 2009 $100bn financial commitment made by developed countries enable action in low income countries. Yes, national contributions and mitigation are still real and very important, but emerging from the periphery is an urgent conversation of the damaging and growing impacts of climate change and the global responsibility to step up to address the damage, loss and displacement resulting from the climate emergency.?

When it comes to climate change those poorer countries who have contributed the least are among the most vulnerable. The Centre for Global Development reporting that the $100bn commitment from governments is not even close to the financial resources that will be required for these lower income and most vulnerable countries to manage through the impacts of climate while also mitigating their own emissions. Despite this, getting countries to make good towards their share of the $100bn commitment has proven challenging. The Global Climate Risk Impact Report, now in its 16th Edition, analyzes and ranks those countries most affected by “climate related extreme weather events (storms, floods, heatwaves etc.)”. This evidence, paired with the gut-wrenching 2022 United Nations (UN) report on the “Top Climate Emergencies impacting Refugees” and the growing anger of developing countries, as stated by the UN in the lead up to COP27, ensures the topic of financial contribution, and the delivery mechanism thereof, will only gain momentum amongst sustainability practitioners and governments in developing countries, ensuring it eventually finds its way into the boardrooms of developed countries.

The “S” of ESG strategies and performance continues to evolve as investor and employee expectations change. Leading think tanks on business strategy and management consulting agencies surmise that workforce engagement now extends beyond flexible work arrangements, meaningful work, increased support for mental wellness to consider corporate (employer) contribution to societal impact and social justice. There is a far more altruistic value emerging signaling that employees are increasingly concerned about the social purpose of their organization, and the social contract between employees and employers.

More and more people want jobs that align with their social justice beliefs, and these beliefs extend globally.?HBR defines Corporate Social Justice as a "reframing of social responsibility that centers the focus of any initiative or program on the measurable, lived experiences of groups harmed and disadvantaged by society". Examples of social justice action incorporate commitments and action towards equity, diversity and inclusion (EDI), the United Nations Declaration of Rights of Indigenous Peoples and Truth and Reconciliation, and environmental issues that have become very real social issues.

This year we have seen significant weather events - exacerbated by a warming climate - wreak havoc on both developed and developing nations alike. There is a very real increasing awareness of the local and global impact of a changing climate, and the inherent responsibility of those wealthy to do something in addressing those in which it harms the most. The impacts of climate change are a social justice issue. The reality, too, is that the incoming workforce, primarily Gen Z and those born thereafter, have far different expectations of corporate action towards climate change and its impacts. It could be naive to assume that the themes of adaptation and vulnerability at COP won’t readily influence corporate sustainability strategies here in North America. It is quite possible that the topic relative to employee engagement might be far more connected than boards and c-suites readily see on the surface.

Of course, none of this is small, easy or without effort. Forbes will tell you that you can increase employee engagement through ESG, if you make your strategy inclusive, invest in initiatives aligned to the organization’s strengths, and create ambassadors to promote your sustainability goals. This, of course, has to be founded on strong governance towards transparency and action, a commitment to the empowerment and engagement of people, and the adequate financial and human resources to deliver the work.

I have to admit, nothing I have read inspired a belief that this COP was going to be more effective than years prior, perhaps even less so given the global tragedies of war and abundant geo-political tension; issues that are all angling for top priority of government mandates and distracting from COP's core agenda. I do, however, believe in the power of people. Today, there is an inspiring opportunity to engage workforces to define social purpose that aligns with the values of their organization, and then establish real commitments around this. The world has changed, how we approach climate impact and other social justice matters must to. Herein lies a lever for organizations to lean into the evolving ideals and values of a changing workforce to attract, engage and retain employees in a way like never while also contributing to better social outcomes on a global scale.

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