The COP27 that was held in Egypt had led to an agreement on establishing a loss and damage fund, to support those nations most vulnerable to receiving the impacts of climate change crisis. Although it was agreed that financial support is essential in assisting the implementational plan to achieve the long-term climate sustainability goals, the details on who should pay for the fund to which countries will benefit from this financial support are to be discussed at the COP28 in Dubai, United Arab Emirates.
In the COP27, it was also highlighted that global greenhouse gas (GHG) was the main contributor to climate change, and that the GHG level must be reduced by 43% to limit the global temperature rise to 1.5 degree℃ by 2030. The loss and damage fund aims to provide financial support on innovation, technological and other implementational techniques to increase efficiency and improve sustainability.
The GHG reduction goal may present a challenge to businesses. Particularly, in improving efficiency by reducing wastes and unnecessary loss. While this may appear to be a complicated challenge, it also presents business opportunities. Since large corporations often have the advantage of accessibility of resources that allows for solid and quick adaptations of new techniques. Here, the opportunities are the economy of scale, significant increase of profits following minor internal adjustments and corporate influence among the operating industry.
The COP27 and future conferences may present businesses with a great challenge to reduce GHG at an agreed level, which may seem difficult to achieve following large-scale corporate activities to serve the national or global demands. Yet, the COP27 outcome also gives businesses opportunities to reconsider some aspects of their current operations, with particular focus on efficiency and room for corporate sustainability, in order to effectively adapt to the 21st century climate that will sustain and further contribute to long-term corporate values.
Technological advancement in this 21st century presents a unique set of tools that enable businesses to tackle complicated issues of the 21st century, particularly the climate change issues. Examples of technological implementations to improve efficiency are widely witnessed across many business industries, from manufacturing to logistics and e-commerce, for instance.
Technological assistance to current operations save businesses costs, with the remote or automated functions allowing businesses to deliver high quality results while eliminating costs associated with physical on-site activities. On the other hand, innovation gives businesses new advanced ways to produce goods and services to customers. Increasing product and service varieties to the existing ones, expanding the market for businesses to profitably thrive. Sustainable corporate actions that concern communities would allow firms to connect better with the communities, which further reduce the costs associated with stakeholder conflicts. Allowing the firms to continue the business activities with less friction and sustainable collaboration with community that may result in further value adding,
As a result, achieving the COP27 goals and beyond would not only benefit the global community but long-term business success. Sustainability is not just about external climate but business successes. COP27 sustainability goals serve businesses an opportunity to redefine their business fundamentals, in order to become more corporate sustainable for better long-term success and sufficiently adaptive to the 21st century unique climate.
For OnlyVenture Consulting, the COP27 strengthens our role in facilitating innovation for businesses which ultimately contribute to the success in achieving the COP27 goals and beyond. Innovation management is the key to effective adaptation in this 21st century. Increasing digital demands present a unique climate in which OnlyVenture Consulting promises to deliver high quality strategic planning and implementations to our clients under a variety of consulting areas. Our team of expert consultants with each one of them accumulating from 10 years to 50 years of practical experience in the various industries and research work have provided our clients with top-class consulting services with global standard quality.
The COP28 is to be held in Dubai, 2023. More discussions on implementation details for the loss and damage fund are to be followed, together with other issues to be discussed at the conference. As the UNFCCC executive secretary, Simon Stiell, said as a conclusive note on COP27 “The heart of implementation is: Everybody, everywhere in the world, every single day, doing everything they possibly can to address the climate crisis”.
OnlyVenture Consulting aims to be an authentic business partner to clients in solving corporate issues and achieving the COP27 goals and beyond.
Adapted from source: United Nations Framework Convention on Climate Change (UNFCCC).