Climate change and ESG

The concluding lines of my post (Sept ’20) seem highly relevant this week:

“The challenges presented by climate change will manifest themselves particularly in risks of supply chain disruption. Recognising these risks, and addressing them while also addressing the need to move towards net-zero emissions, present an immense opportunity for the UK food industry to move from the great reactive work during the Covid-19 pandemic to a position of long term climate resilience.”

Many of us are both hopeful, and unconvinced, in the wake of G7 commitments on climate change. This week’s report from the Climate Change Committee contains an additional sobering reality check for us:

“Action to improve the nation’s resilience is failing to keep pace with the impacts of a warming planet and increasing the climate risks facing the UK.”

Against this background, where do I place my hope, my optimism? I place it in the hands of those increasing numbers of progressive businesses who see both the financial and moral imperative of addressing climate change as a matter of priority. These organisations are setting net zero targets, reducing their carbon footprint, addressing the challenges of Scope 3 emissions, and working with their suppliers.

I also place it in the hands of the many influential organisations in the investment community. These organisations are becoming increasingly powerful, bringing increasing scrutiny and pressure to bear on the businesses, acting as both forces for good and forces for change.

There is power in ESG ratings also. As businesses focus on these ratings, they discover that transparency and reporting are important elements. More transparency, more reporting against more robust metrics – yes please.