Business Leaders Must Recognise The Urgency Of Climate Action. It’s Not Just For The Planet
2023 is on track to become the hottest year on record. Despite notable focus on climate action, there is still much to do. The number of companies expressing net-zero targets has jumped considerably, but just 4% meet the stringent criteria laid out by the United Nations.
Not only do business leaders need to recognise the urgency of reducing their emissions for the sake of the planet, they also must recognise the massive business opportunities in sustainable business transformation and the low-carbon economy.
Sustainability Data’s Growing Importance
Technology remains a significant catalyst for decarbonisation across company operations and supply chains. Among the cross-cutting for the ongoing COP28 Summit is technology’s leading role in solutions that will help us stay on course with the Paris trajectory.
There is evidence several businesses already recognise the link. A recent SAP survey found that more than 70% of UAE businesses surveyed plan to increase their investment in sustainability strategies over the coming three years.
Sustainability data has become increasingly critical these days. But the way emissions are accounted for today is largely based on guesswork and estimates. Businesses need actual data to better understand their impact and help communities adapt to the changing world.
Carbon Accounting VS Financial Accounting
The science shows the world needs to limit global warming to 1.5C above pre-industrial levels. But a large number of companies still use averages and estimates to calculate their emissions. They need to quickly start using verifiable and auditable carbon emissions data.
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It appears carbon accounting has not yet matched financial accounting in terms of complexity, maturity and regulatory standards. After all, carbon accounting has had just 25 years to evolve, in contrast to financial accounting’s more than 500 years of existence.
