The COP26 summit has finally ended after nearly two weeks of fraught negotiations. It has been hailed as a ‘mixed-bag’ by some experts, but its focus was firmly on businesses, earning it the nickname ‘Business COP’ amongst delegates.
In the spotlight were industries including finance, construction, vehicles and aviation, agriculture, renewable energy, and infrastructure. But the pledges to strengthen emissions-cutting targets by the end of next year could have far reaching consequences for firms in all sectors, of all sizes. At the forefront of the negotiations were scrutiny of fossil fuels, the 1.5C target, and new carbon rules set to drive investments.
So how could the key agreements made at COP26 affect your business, and how can you get ahead of the curve?
The transition to net zero emissions
The Glasgow Financial Alliance for Net Zero (GFANZ) has more than $130 trillion in assets under management, presenting 40% of the world’s total financial assets and managed by 450 firms across 45 nations. It was the largest financial commitment by far at COP. GFANZ members are required to transition their portfolios in line with the Paris Agreement to limited global temperature increases to 1.5C.
Britain’s largest businesses are leading the way in the global transition to net zero emissions, with over half of FTSE100 companies now committed to eliminating their contribution to climate change by 2050. In addition, over 2,000 small businesses from across the UK have pledged to reduce their emissions and join the Race to Zero.
And taking action to tackle climate change does not need to be at the expense of a growing economy – between 1990 and 2019, the UK’s economy grew by 78% while carbon emissions fell by 44%, the fastest reduction in the G7. UK Chancellor Rishi Sunak announced that Britain will become the first country to force all financial institutions and listed companies in the UK to publish plans on how they will transition to net zero from 2023.
So how can you ensure your business is on track? Enexus Energy develops bespoke, innovative strategies to optimise the way your business purchases, generates and consumes energy, helping you on your way to net zero.
One of the most discussed, and contested, elements of COP26 was fossil fuel emissions. For the first time, countries acknowledged that fossil fuels were the main cause of climate change, singling out coal as the most polluting of the fossil fuels, urging firms to “phase down” coal-fired power. Additionally, more than 100 countries pledged to significantly cut emissions of methane gas.
At Enexus Energy, it is our commitment to ensure that your business is fully compliant with essential energy and environmental legislation. We can help you achieve environmental excellence and legislative compliance with a green, clean, sustainable approach to business energy.
More than 40 world leaders agreed on a UK-led plan to speed up affordable and clean technology worldwide by 2030. The first five goals have been dubbed the “Glasgow breakthroughs” and cover more than 50% of global emissions: power, road transport, steel, hydrogen, and agriculture.
If you’re looking to utilise technology to help your business go green, we can optimise your financial, operational, and environmental performance, offering bespoke solutions for managing site operations and utility meter installations, disconnections, and service alterations.
While we can’t predict how some of the targets for 2030 and 2050 will play out, or what could be agreed at future COP summits, getting ahead of new legislation and compliance obligations can ensure that you’re prepared to meet any upcoming targets, while saving time and money with a smart, simple approach to energy management.Dan Serghi, Enexus Energy