Article
New climate commitments
What did the COP26 summit in Glasgow bring?
Sustainability Insights 5/2021
After two weeks of negotiations at COP26, a new international agreement on climate change was signed: the Glasgow Climate Pact. The new document does not replace the groundbreaking Paris Agreement, but rather complements it and clarifies some key points. And while it is the first ever climate agreement that explicitly mentions a reduction in carbon emissions, many experts say it is not radical enough to meet the goals and prevent a climate catastrophe.
Published ahead of COP26 in November 2021, the Emissions Gap Report showed that national climate commitments (Nationally Determined Contributions - NDCs), even in combination with other mitigation measures, are putting the world on a path of global temperature rise of 2.7 ° C by the end of the century. This is well beyond the goals of the Paris Agreement and will lead to catastrophic changes in the Earth's climate. To keep global warming below 1.5 ° C this century, the world must halve its annual greenhouse gas emissions over the next eight years. And while more countries have committed to more radical cuts in emissions as a result of COP26, there is still a large ambition gap between these commitments and what is needed to limit warming to 1.5 degrees Celsius.
In addition to the Climate Pact, COP26 also brought several joint commitments to reduce methane emissions, halt and reverse deforestation, accelerate coal phase-out, and end fossil fuel financing. The Glasgow conference was also a platform to mobilize innovative sector partnerships and new funds to support them to transform each sector of the economy on the scale necessary to ensure a net zero future, as discussed later in this newsletter.
Deloitte's economic calculations presented in the report "Europe's turning point: Accelerating new growth on the path to net zero" show that inactivity will cost Europe around EUR 6 trillion in the next 50 years. On the other hand, the cost of only 0.7% GDP annually from now on can project the transformation towards a better GDP in Europe in 2070 by around EUR 730 billion! And there is public support for the action as well - two-thirds of the respondents to the Deloitte Sustainable Behaviors Survey said their governments should do more to combat climate change.
In the latest newsletter:
Echoes of COP26
Especially for COP26, Deloitte created Climate Exchange - a global knowledge and cooperation hub where we share publications and ideas to inspire climate action around the world. Check and look for knowledge and inspiration – Climate Exchange Hub
During the climate summit, the Glasgow Financial Alliance for Net Zero (GFANZ) report was published https://www.gfanzero.com. GFANZ members are 450 financial institutions that have agreed to allocate $ 130 trillion - about 40 percent of the world's financial assets - to the goals set out in the Paris Agreement. What other arrangements and declarations related to sustainable investment and financing resulted from the discussions at COP26?
Read our summary of the most important findings and events at COP26 related to Sustainable Finance - here.
Climate Sentiment Index
According to the Deloitte report "Climate Sentiment Index", more than 80 percent of respondents declare that they express their care for the environment in pro-ecological behavior, and 58 percent declares that they choose brand products that act sustainably. Every second respondent checks whether the pro-ecological declarations of companies are consistent with reality.
Consumers are ready to take action to mitigate the effects of climate change | Deloitte
More than half of respondents (57%) of the global Deloitte Sustainable Behaviors Survey said they felt concerned about climate change in the last month, and 72% said they felt concerned about climate change and consider this to be an alarming situation. The people of Brazil, South Africa, Mexico and India are the most concerned in this respect.
ESG Reporting: More transparent and meaningful reporting
What is ESG reporting and why is it important for business? What factors are driving the demand for ESG information today? In our publication, we present the leading reporting standards and framework, a calendar of initiatives and the most important concepts.
Globally Consistent ESG Reporting | Deloitte global
To encourage the necessary industry-wide change, the market must reward good sustainability performance. The first step is to ensure that the sustainability performance measures are prepared and disclosed with the same level of consistency and comparability as the financial performance measures. Therefore, we are pleased to take a big step towards this goal of establishing the International Council on Sustainable Development Standards (ISSB), which sets global standards for sustainable development reporting.
Maria Ibisz, a senior manager in the Deloitte Sustainability Consulting team, is one of seven people from our regiona to become a member of the EFRAG expert working group, which deals with the development of draft European standards for sustainable development reporting. It is a great distinction, appreciating Maria's knowledge and commitment in reporting. Congratulations!
The aim of the European Financial Reporting Advisory Group (EFRAG) is to develop European positions in the development of International Financial Reporting Standards and to ensure that they are considered by the International Accounting Standards Board.
Other Deloitte events and publications
Article about decarbonization: Establishing a science-based approach to measuring greenhouse gas emissions | Deloitte
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