NEW YORK--(BUSINESS WIRE)--A majority of business leaders say that a long term agreement at the UN climate summit (COP21) in Paris is critical to supporting private sector investment in low carbon solutions, according to a global study by the United Nations Global Compact and Accenture (NYSE:ACN). The report also reveals that executives see action on climate change as an opportunity for growth and innovation that will be essential to securing competitive advantage in their industries.
The UN Global Compact-Accenture CEO Study report, Special Edition: A Call to Climate Action, is based on a survey of 750 business leaders from UN Global Compact participant companies. The research, undertaken by Accenture Strategy, reveals that 70 percent of executives representing companies with annual revenues of more than $1bn see climate change presenting opportunities for growth and innovation for their company within the next five years. Sixty-seven percent already see a clear business case for action on climate change.
In the broader sample of business leaders across 121 countries, more than half (54 percent) of all respondents say that climate change will create opportunities for their company within the next five years. Forty eight percent believe that there is already a clear business case for action.
“The international community has a unique opportunity in Paris to advance action on climate change through a bold, ambitious and universal agreement,” said Lise Kingo, Executive Director of the United Nations Global Compact. “Our research clearly shows that business leaders are committed to leading the way, and we believe that business can play a central role in galvanizing momentum to meet the first test of our collective ability to deliver collaborative action on the Sustainable Development Goals.”
Priority policy actions
Business leaders are clear that government action is critical to supporting further progress. Seventy four percent of executives at companies with more than US$1 billion in annual revenues, and 61 percent of all respondents, see a long-term agreement in Paris as critical to unlocking private-sector investment in climate solutions.
The concern about policy action comes as two thirds (66 percent) of business leaders say that the private sector is not doing enough to tackle climate change. Ninety-one percent believe that action is an urgent priority for business, but just one-third (34%) see progress on track to restrict global warming to less than the 2°C limit.
The study identified five key policy measures that can unlock further private sector investment in climate solutions:
1. Legislative and fiscal mechanisms to increase investment in climate solutions;
2. Financial instruments to stimulate R&D and innovation in low-carbon solutions;
3. Performance standards to reduce greenhouse gas emissions and enhance climate resilience;
4. Global, robust and predictable carbon pricing mechanisms;
5. The removal or phasing out of fossil fuel subsidies.
To explore preferred policies to support private sector action, the study surveyed 75 CEOs of corporate signatories to Caring for Climate, the initiative to advance the role of business in addressing climate change launched in 2007 by the UN Global Compact, UN Environment Programme and the secretariat of the UN Framework Convention on Climate Change. Three-quarters of these CEOs believe that carbon pricing is an essential tool in accelerating action on climate change. Eighty-two percent say that business needs a clear roadmap and timeline from governments on policies related to future carbon pricing mechanisms. Eighty-four percent believe that carbon markets, enabled by a robust carbon price, can drive low-carbon innovation and investments in clean energy and efficiency.
Reflecting on the road ahead and the ability of their companies to plan effectively for the future, 38 percent call for more stringent and consistent performance standards that can reduce emissions and enhance climate resilience; and 31 percent see the removal or phasing out of fossil fuel subsidies as key to further progress.
“For perhaps the first time, we are beginning to see a united front of business leaders and policymakers setting their course toward a bold deal that can begin to close the gap between ambition and execution on climate,” said Peter Lacy, managing director, Accenture Strategy. “It is clear from our research that business leaders increasingly see climate change through the lens of fundamental disruption in their industries, and that leading companies are approaching climate change as an opportunity for growth, innovation and competitive advantage.”
Actions for businesses
The study also identifies five key leadership behaviors that will be essential for companies to adopt in their efforts to play a leading role in addressing the climate challenge:
1. Providing proactive, constructive input for governments to create effective climate policies;
2. Collaborating with industry peers to foster leadership, innovation and scaling of climate solutions;
3. Investing in low-carbon technologies and solutions to drive energy efficiency, grow the supply of renewable energy, leverage low-carbon innovations and build climate resilience;
4. Taking concrete measures to increase climate resilience in operations and communities;
5. Setting emissions reductions targets in line with science and the 2°C limit.
The report includes open letters to business leaders and policy makers, written by the CEOs of some of the leading proponents and practitioners of climate change action. Findings from the report will be featured at the annual Caring for Climate Business Forum at COP21 on 7-8 December in Paris-Le Bourget. The Forum will provide a venue for business and investors to meet with governments, civil society and the UN to advance the climate agenda. The high-level meeting of the Forum on 8 December is the focus event for business under the Lima-Paris Action Agenda. For more information visit c4cbusinessforum.org.
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 358,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy
About the United Nations Global Compact
The United Nations Global Compact is a call to companies everywhere to voluntarily align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of UN goals and issues. The UN Global Compact is a leadership platform for the development, implementation and disclosure of responsible corporate policies and practices. Launched in 2000, it is largest corporate sustainability initiative in the world, with over 8,000 companies and 4,000 non- business signatories based in 160 countries. www.unglobalcompact.org
About Caring for Climate
Launched by UN Secretary-General Ban Ki-moon in 2007, Caring for Climate is the UN Global Compact, UN Environment Programme and the secretariat of the UN Framework Convention on Climate Change’s initiative to advance the role of business in addressing climate change. It provides a framework for business leaders to implement practical climate change solutions and help shape public policy. Chief executive officers who endorse the initiative are prepared to set goals, develop and expand strategies and practices, and to publicly disclose emissions. The Caring for Climate Business Forum is held every year at the UN Climate Change Conference (COP/CMP), providing a platform for dialogue and action among business, investors, civil society, the UN and Government officials. Caring for Climate is endorsed by over 400 companies from 60 countries. www.caringforclimate.org