The Business of Climate Recovery at COP27
Accelerating Accountability, Ambition and Action
The World Business Council for Sustainable Development (WBCSD) has engaged its leading member companies to develop a business implementation agenda for COP27 in Sharm El-Sheikh, Egypt. The Business of Climate Recovery: Accelerating Accountability, Ambition and Action provides an overview of some of the most promising ambition and action platforms for business. It also sets out a menu of specific interventions for accelerating the global decarbonization of business, involving business leadership with closer government collaboration to:
- Sharpen Accountability
- Raise Ambition, and
- Deliver Action at speed and scale
Collectively, these interventions with business can radically advance the international climate change agenda in the next five years. This report hopes to offer a practical response to the COP27 President’s challenge for the climate agenda to move away from launching pledges and towards project implementation at scale.
In this report, leading businesses put forward proposals and policy ideas to raise the ambition level, scale up action in systems transformation and most importantly move beyond mere commitments and targets to create a holistic corporate climate accountability system that will show the progress business is making against its net zero targets, as well as crystallize the contribution of business in the delivery of Nationally Determined Contributions (NDCs).
To sharpen business accountability, three priorities have been identified that can all be initiated during COP27 and developed fully towards COP28:
1. Create alignment of the corporate carbon accountability system. This includes the promotion of clear and vocal business support for the ISSB Prototype under development to become the mandatory global baseline for climate reporting.
2. Establish strong foundations for the carbon accounting system, by upgrading the Greenhouse Gas Protocol and developing methodologies and data exchange protocols for scope 3 emissions.
3. Develop a Global Corporate Carbon Accounting Aggregation Mechanism, to link corporate data into national emission reduction progress reports.
To raise ambition, five practical action areas have emerged as key priorities among WBCSD members, including for work with policymakers:
1. Get more companies to set credible targets for emissions reductions, and take accountability for their progress.
2. Raise NDC ambitions in partnership with business.
3. Advance partnerships with business to implement carbon pricing.
4. Accelerate an equitable and inclusive net-zero transition in key business and industry sectors.
5. Unlock the potential for high integrity Natural Climate Solutions (NCS).
To deliver on action now, for impact by 2025, WBCSD and its member companies have identified a series of focused interventions to scale progress in key economic systems (Energy, Industry, Built Environment, Mobility, Food and Agriculture and Capital Markets). Key new action areas include:
- Develop transition pathways and investment plans with National Oil Companies.
- Develop guidance and methodologies for avoided emissions to accelerate innovation of business solutions.
WBCSD and its member companies look forward to engaging with the COP27 Presidency, and all parties and business leaders from around the world to drive the ambition, action and accountability forward and accelerate the decarbonization of business to the levels prescribed by climate science.
During COP27 – and in the weeks and months that follow – more discussions will undoubtedly advance the suggestions featured here.
To this end, WBCSD is delighted that the Director General of the United Arab Emirates COP28 has formally welcomed WBCSD to host its 2023 Council Meeting in the UAE at the time of COP28, from Friday 3 November to Sunday 5 November 2023.