[Opinion] Accelerating carbon neutrality

Carbon neutrality goals are the main strategy of companies in the face of the climate crisis, and the lessons of COVID have accelerated its adoption. By 2022, 91% of the global economy is covered by carbon neutral commitments (Net Zero Tracker). At the corporate level, Accenture's global report (Accelerating global companies toward net zero by 2050) shows that more than one third of the companies larger have a carbon neutrality goal, an increase of 11% compared to December 2021. For Latin America, the Latin America Business Climate Action Report by Libélula and nexos+1 which sought to measure the "climate maturity" of the companies, indicates that 24% out of 109 companies interviewed in 9 countries have committed to be carbon neutral by 2050.

Globally, leading companies are setting increasingly sophisticated objectives, promoting short-term actions such as the transition to renewable energies and developing climate change mitigation and adaptation strategies. The number of companies that plan to its investment in sustainability has increased in the last year, and so has renewable energy spending. But how do we transform that growth into a real solution to the climate crisis that is economically and socially profitable?

First, ensuring that the goals are aligned with science, ambitious, aspirational, and contextualized. Science tells us that we must cut global emissions in half by 2030. This is a benchmark that all companies could use to assess whether their goals are aligned with science.

Those that can go further should do so, and support others in their value chain to do so as well. It is essential contextualize goals to ensure that to enhance efforts of high economic and social value, such as employment generation and poverty reduction. Only the establishment of goals with the characteristics described above will catalyze innovation, take advantage of the opportunity to generate new business and achieve a real reduction of the risks brought about by the climate crisis. 

Secondly, with real action. While the figures are encouraging in terms of setting targets, they are not encouraging in terms of the actual trend in emissions reductions. Companies need to start now with actions that enable the decarbonization of their operations and supply chains. Increasing energy and material efficiency, with a circular economy approach, electrification, the use of renewable energy sources, ecosystem management with a regenerative approach and the adoption of an internal carbon price are some examples. We must also think about developing green technologies and low-carbon products and services.

Finally, let us ensure that our companies are analyzing their information on emissions, energy, water, waste, risks and environmental impacts with the same seriousness as their financial or business information. This is the only way to accelerate carbon neutrality.