With business, on the ground at COP27

One of the big positives to come out of COP26 was the step-change in terms of business engagement with the climate and nature agenda. Companies from around the world came to Glasgow, shared knowledge about their own journeys, made commitments to drive real economy change and unanimously backed the summit’s outcomes.

That’s a strength of commitment matched by the firms I’ve met every day since. Reducing emissions is regularly cited as a key business priority, with many revolutionising the way they operate – often transforming decades-old methods – to make greener choices and lessen their environmental impact, even in instances where it could increase costs in the short run.

I’ve been on the ground in Sharm el Sheikh, meeting with businesses and policy makers, and getting a very real sense of the urgency that still exists – despite geopolitical and economic pressures.

We haven’t appreciated how significant COP26 in Glasgow was

In terms of information sharing, COP27 has been  different. In Glasgow we had announcements scheduled every day about partnerships between governments and pledges from the private sector. The agreement reached under the Glasgow pact really raised the bar. There was also clear communication on what was being discussed at the negotiations. This year the process has been difficult to follow, making it harder for stakeholders outside the negotiation process to observe meetings,  meetings as observers, or table interventions. Although when news has  got through, they’ve been impressively quick to react – like the We Mean Business Coalition did in response to the concerns over the weakening of 1.5 degrees, demonstrating the commitment of over 200 business leaders and major civil society voices to limit global temperature rises.

Pressure is growing on businesses – but we’re ready to take the lead

Businesses aren’t just content with looking inward on their own operations, many want to play a leading role in tackling climate change at a global level. I know many companies big and small have been watching progress at COP27 with interest. Because to take that next step, to deliver lasting change, they need national frameworks in place to guide their efforts.

But the pressure on non-state actors is also ramping up. During the summit the UN High-Level Expert Group published their report to address net-zero commitments by non-state actors – particularly businesses, financial institutions, and cities and regions.  Launching the report UN Secretary General António Guterres boldly outlined that there must be “zero tolerance for net-zero greenwashing”.

The CBI – and our members – have a big opportunity to lead the UK on this. As the private sector, we need to walk the talk, but also put our money where our mouth is.

But governments have a significant responsibility in bringing stakeholders together, particularly if we are moving from pledges to implementation. The UNFCCC are aware of this point and it seems are also thinking about how climate summits of the future will need to change to accommodate more interaction with non-state actors.

Businesses need to step up because the world remains divided

Whilst we in the global north are consumed by the impact of the fuel and energy crises, the global south are facing first hand the devastating impacts of climate change and nature loss including extreme heatwaves, flooding and famine.

The dark cloud over the summit is fossil fuels. Frustration is mounting that developed countries are again pursuing a decarbonisation pathway that is economically favourable for them whilst developing countries and their communities risk being left out of the opportunities from the energy transition . Meanwhile on loss and damage – another point of contention – there is little progress made.

So we can’t think purely of this in terms of green growth opportunities. Thoughts about peace, prosperity and planetary survival will weigh heavily on the shoulders of negotiators in Egypt – just as it does for many of the businesses I’ve met. I’ll take heart from the conversations I’ve had with them at COP27 – and I’ll be coming home ready to translate what it all means. To help push our government and our businesses on the swift and decisive implementation this needs.