As the ever-ticking clock of climate change demands urgent action, organizations across the globe must rise to the occasion and harness their immense potential to be the driving force of positive change. We stand at a pivotal moment in history, where the choices we make today will determine the fate of generations to come.
Climate change is one of the world’s greatest collective action problems, a global issue that the world is currently facing and will continue to face if not mitigated. Climate change will affect more severely emerging economies like Zambia than it will on advanced economies, posing a greater threat to economic growth, development and even businesses. What then can organizations do to positively contribute to the climate change action?
What is Climate change?
Climate change is the increase of global temperatures above the normal conditions which in the past has been led by the increase in greenhouse gas emissions (carbon dioxide and methane) into the atmosphere. This has been driven by the increase in human activity such as transportation, use of fossil fuels through transportation, infrastructure developments etc., By 2030, climate change is likely to push over hundred million people into extreme poverty due the occurrence of extreme whether events. This would ideally lead to the reduction in economic productivity causing ripple effects on economic conditions. The risks that emanate from climate change as a concept will affect emerging economies as they lack the capacity to adequately combat the damages that it may cause.
There are various climate-related risks that may have an impact on companies and organisations that include physical risks – acute and chronic risks, Transitions risks – policy risks, legal risks, market risks and technological risk. It is important to note that the impacts of climate related risks will vary depending on the understanding of the entity, its environment, and internal controls. For organizations considered to be in high-risk industries, the implications on the future business models, investment priorities, costs of doing business, supply chain resilience, costs, and access to financing, may be greater because of the interconnection between climate change, climate related risks and indicative economic indicators.
What can organizations do to positively contribute climate change?
- Measure and analyse greenhouse gas emissions.
An organization cannot achieve this effort without understanding its main pollutants or contributors to greenhouse gas emissions. This is all dependant on the business the organization operates under. Thereafter, the organization must set targets to achieve the lowest and most sustainable carbon emission footprint.
- Reduction in energy consumption.
Without compromising on the day to day running of the organization, it is important for organizations to pay particular attention to the daily energy consumption of the organization. Actions such as unplugging electrical devices when not in use, turning off lights at the day’s end, slightly lowering the use of air conditioning or slightly lowering the use of air conditioning, are some examples of the reduction in energy consumption.
- Reduction in company waste
All companies regardless of the size or nature of the organization, produce waste. To contribute to the climate change action, it is important for organizations to reduce the amount of waste generated by the organization. One way to do this is by adopting a recyclable culture or where possible, avoiding the use of disposable tupperware or cutlery.
- Use of green energy sources
This is one of the most effective ways for organizations to reduce their carbon footprint. This not only helps reduce the energy budget, but also positively contributes towards climate change. The benefits of green energy sources may include the diversification of energy supply which would reduce dependency on fossil fuels, generation of clean energy that does not produce greenhouse gas emissions from fossil fuels, and ultimately a reduction in air pollution.
How can organizations identify the need for climate change mitigation strategies?
As the future of our economy and organizations is constantly changing because of climate change, there is a need to meet its changing demands. The following are questions that can be used to assess the need for climate change incentives by an organization and its financial statements: Are the organization’s financial instruments exposed to climate related risks? Does the organization have a climate related customer base? Is the organization required to purchase emission credits? Is the organization exposed to carbon related regulation? Have you met a net-zero commitment?
A key climate mitigation strategy to reduce greenhouse gas emissions sought by the IMF is Carbon Pricing. Carbon pricing is pricing the use of greenhouse gas emission contributors by users – us. Currently the carbon price stands at 3 dollars and is likely to increase in the future. This means there is an additional three-dollar charge to any instrument that contributes to GHG emissions e.g., fossil fuels, which are the greatest contributors to GHG emissions.
The time for hesitation has passed, and the time for action is now. To triumph over the greatest challenge of our time, businesses, NGOs, governments, and individuals must unite in a collective effort to do this. By working hand in hand, we can tip the scales in favour of a more resilient, cleaner, and harmonious world—a world where future generations can thrive and look back with gratitude at the legacy of positive change we left behind. The opportunity to make a difference awaits. Let us seize it with unwavering determination and hopeful hearts. The world is counting on us, and we shall not disappoint.