Shaken Not Burned

Highlighting changemakers and solutions

Glossary - Climate levers

Climate levers are the tools and mechanisms used to reduce emissions and achieve climate goals, from corporate culture, energy efficiency and energy sourcing, to agricultural commodity sourcing and regenerative agriculture to new technologies. This can happen at a corporate level and, although some levers apply universally to all sectors, each industry relies on its own set of relevant tools and approaches.

Where it gets interesting is at the municipal level where it encompasses everything from urban planning, utilities management, sustainable transportation, lifestyle change support and more. It’s the ability to implement strategies across multiple sectors of impact that makes cities a key power in effectively addressing climate change. 

Busting a myth

“100 companies are responsible for 71% of emissions”

The well-known research from CDP identifying entities that had contributed to over 70% of global emissions has been questioned for a number of reasons. Firstly, it is not just the private sector to generate all these emissions,  but also state-owned entities (especially coal use driven by state-owned entities in China, Russia and India). Secondly, the figure referred to is 71% of all industrial emissions – not the total of global emissions. There’s also a question of Scope 3 emissions and the extent to which they were included.

However, the research underlines that, while big business may have persuaded us that mitigating climate change is down to individual choices, that’s simply not true. Individuals operate within the current economic and industrial system and only have the options available to us that we can afford. The problem is the makeup of industry, industrialised agriculture and the system in which we operate. As individuals, our impact comes from consumption choices, investment choices and the power to vote. 

What we’ve been reading this week

• The CSDDD could prove a tipping point in corporate reporting

  The EU Parliament has approved the Corporate Sustainability Due Diligence Directive. While it’s been watered down from its original concept, once effective it will create legal liability for companies relating to environmental and human rights violations within their supply chain. That could impact more than 5,000 companies (both public and private), those with more than 1,000 employees and a turnover of €450 million, as well as throughout their supply chain. As Brussels sets out mandatory frameworks and liabilities, corporates operating across multiple jurisdictions are likely to want one approach to measurement and reporting – and this has created a new baseline.

• ISSB to start work on biodiversity and human capital

  There’s a recognition amongst the world’s standard setters that human and social issues, as well as biodiversity and nature, are becoming hugely important factors in economic function. The ISSB has said it is beginning research on how to disclose this kind of risk, as a ‘critical step’ in the evolution of sustainability reporting. Given that the latest research from the UK’s Green Finance Institute warns that nature and environmental damage could result in a 12% hit to GDP – more than COVID – this is an increasingly urgent challenge for corporates and central banks alike. 

• SBTi says it is open to debate on the use of carbon credits

  The SBTi board caused a huge governance issue with the release of guidance on the use of offsets to address Scope 3 emissions, something that runs counter to its historical position of requiring up to 95% of emissions to be addressed rather than offset. This led to pushback from staff that said that it had ‘undermined’ the organisation as a whole. SBTI has now said that its announcement was intended simply as a ‘strategic steer’ to drive conversation and that the news was ‘misinterpreted’. So there’s a lot of argument and debate likely to dominate the carbon markets over the next few months – and. sadly, continued confusion about what steps corporates need to take to be credible in addressing climate risk and sustainability.

• Climate damage to hit $37trn but clean energy could boost GDP growth

  Analysis has warned that climate change could cut global income by nearly 20% by 2050, more than six times higher than the mitigation costs needed to limit global warming to two degrees. Overall, global annual damages are estimated to be at $38 trillion dollars, with a likely range of $19-59 trillion in 2050. At the same time, however, the International Energy Agency has said that in 2023 clean energy added around $320 billion to the world economy. This represented 10% of global GDP growth – equivalent to more than the value added by the global aerospace industry in 2023. So it does seem to make economic sense to invest in growth and minimising damages.

• UN labour agency warns on worker impact of extreme heat

  The International Labor Organisation has released analysis showing that climate change creates a ‘cocktail’ of significant health hazards for 70% of workers around the world. The health consequences of climate change can include cancer, cardiovascular disease, respiratory illnesses, kidney disfunction and mental health conditions. The ILO estimates that more than 2.4 billion workers (out of a global workforce of 3.4 billion) are likely to be exposed to excessive heat at some point during their work, according to the most recent figures available (2020). When calculated as a share of the global workforce, the proportion has increased from 65.5% to 70.9% since 2000. The knock-on impact on productivity and health should not be underestimated.