No one wants more blah blah blah, especially not business

At COP26 how do businesses like ours make sure we’re not saying “blah blah blah ”? I believe we must collaborate globally to achieve defined goals within the right regulatory frameworks. And we must take everyone with us.

It’s a radical idea and difficult to do. But companies like EY have been collaborating globally, across countries and cultures, for years. EY teams want to share their experience and skills and support change through digital transformation ; by supporting regulation that moves economies away from dependence on fossil fuels ; by reconfiguring the social contract through work with not-for-profit organizations ; committing to being measured against ESG metrics ; and, reducing carbon emissions .?

The success of COP26 will be measured by its policy outcomes. However, businesses like EY will measure success by how much their people can translate those outcomes to help clients and stakeholders. It will also be important to harness the global reach of EY, working with governments and policymakers to execute projects that help achieve climate goals. Projects like those helping to reduce the use of fossil fuels are critical. For example, EY teams are helping a global OEM on its journey toward decarbonization; working with Natural Wealth and Natural State to create a carbon removal verification and audit system backed by carbon credits; and supporting client projects for the restoration and protection of forests.

Business is a crucial, integrated part of society, but often discussed as if separate. The people who make up businesses are a crucial aspect of society. That’s why making joint commitments such as the IBC/WEF Stakeholder Capitalism Metrics are so important. This further emphasizes why future growth must focus on sustainable models such as the circular economy, as outlined in the EU Green Deal , to reduce waste and the depletion of natural habitats.

This is the bloc’s most ambitious climate change project, and 26 out of 27 nations have backed it. That means game-changing regulation and enhanced non-financial reporting will be implemented, and the incremental changes required across industries and countries to limit warming to 1.5-2 degrees Celsius above pre-industrial averages will be well-funded.

There are many interconnected goals within the EU Green Deal that cover almost every element of society and the economy. And the financial support from the European Commission is tangible. The investment support is EUR1 trillion over 10 years, half of which will come from the EU’s budget. Additionally, 37%[1] of the EU COVID-19 pandemic recovery fund is reserved for green investment which will bolster this funding. Most recently the European Commission has just issued its first green bonds .

The EY annual European Attractiveness Survey published in June this year found that environmental sustainability will heavily influence investors’ location decisions, with 90% of respondents saying it is important to their investment strategy and that 85% already consider Europe a “green leader”. Given the heightened focus on climate change because of extreme weather events, you’d be forgiven for thinking that this is confirming the obvious. But while we’ve known the science around climate change for some time, the actions that are needed to ultimately achieve broad targets and ambitions, such as the EU Green Deal, a wide range of incremental changes across industries and nations still need to happen. Collaboration on a global level is imperative.

I believe that with clear intentions and defined goals, it is possible. And organizations like EY have a unique position from which to support. Many different types of organizations from the Global North and the Global South will come together at COP26, with an overarching, shared objective. This is a rare opportunity for us to discuss and plan how to transition our businesses and personal lives toward a more sustainable future.

What feels like a sea change is that across industries, disciplines and countries, we share the same message – we need to enact change, the science is irrefutable , but how do we do that while ensuring people have jobs, living standards are met etc.? Greta Thunberg herself said that she believes we can change the course of climate change . I think she’s right. But no single government or business can do it alone.

The COVID-19 pandemic has shown us that when business, government and people come together with a clear purpose, they can enact societal change and speed up businesses’ response. When it was imperative to survival, leaders found a way for people to keep their jobs where possible. Vaccine development happened at speed because of the clear need, and it has radically changed the lives of those lucky enough to have access to vaccines. Of course, the pandemic wasn’t easy for many and many are still suffering the consequences – developing countries more than wealthier nations. Climate change is a similarly existential threat.

I took on my role as EY EMEIA area managing partner in 2019, less than a year before the COVID-19 pandemic and associated lockdowns hit. Other EY leaders and I across EMEIA were responsible for supporting and turning around the working practices of over 121,000 EY people across a geographical area consisting of 10 time zones, 97 countries and the most culturally diverse area within our organization. Everyone had the right technology to work remotely; formal wellbeing and support channels were set up; and EY people made use of extensive online learning content with almost 40% of participants choosing to learn and develop while working from home. And of course, we worked with EY clients. EY grew revenue in EMEIA by 3.8% , which means the organization can continue to invest in its people, clients and other stakeholders, such as not-for-profit organizations.

EY also focused on reducing its carbon emissions and was the first organization in the professional services industry to become carbon neutral in 2020. In October 2021 EY announced that the organization has achieved carbon negative status , validated by the Science Based Targets Initiative . EY is a global business of over 312,000 people which means this will have a significant impact.

So, why is all this meaningful for COP26 and how can businesses help achieve climate change targets? Because whatever the policy outcome we need collective effort to achieve success. The EY organization is dedicated to getting its own house in order by reducing emissions by 40% by 2025, making net zero carbon commitments and driving transparency through ESG metrics. Perhaps even more importantly, we are developing and sharing knowledge and skills through EY people, for clients and communities by collaborating at scale. That is real change, not simply blah blah blah.

[1] See Finance and the Green Deal , European Commission, December 2019