The United Nations’ high company sustainability chief warned enterprise leaders they’ll not ignore the rising “north-south divide” on local weather change.
Sanda Ojiambo, CEO and govt director of U.N. International Compact — a physique accountable for overseeing enterprise commitments to attaining sustainable improvement targets — informed CNBC’s Steve Sedgewick that “local weather has develop into a political problem,” describing the rift between wealthy and poor nations as “the largest chasm.”
Talking on a CNBC panel discussing the challenges and alternatives for companies within the pursuit of net-zero local weather targets on the World Financial Discussion board in Davos, Switzerland, the U.N. director warned that divisions between the worldwide north and the worldwide south have created a “stress at a worldwide stage” amongst each enterprise and policymakers.
“You may’t ignore it regardless of the place you might be on the planet,” she mentioned.
Local weather talks on the COP29 summit in Baku, Azerbaijan, in November led to acrimony, with growing nations left unimpressed by the wealthy world’s monetary commitments.
International south leaders and activists on the climate summit were left angered by a $300 billion finance deal, a paltry dedication in contrast with the $1.3 trillion wanted for local weather adaptation.
At one level, delegates from poor and small island nations walked out in frustration over what they known as a scarcity of inclusion, fearful that fossil fuel-producing international locations have been searching for to water down elements of the deal.
Ojiambo warned of the results of divisions and tensions over local weather finance.
Sanda Ojiambo, CEO and govt director of United Nations International Compact.
Leigh Vogel | Getty Pictures Leisure | Getty Pictures
“It stifles the ample movement of capital, it stifles expertise trade, it is damaged belief,” she mentioned, warning enterprise leaders that they “cannot ignore the politics” and should as a substitute “work inside it.”
Strengthening public-private partnerships with “reasonably priced capital” for “world south” companies is important to therapeutic “a fractured world,” added the U.N. boss.
The worldwide south’s “nervousness and angst” are right down to its producing “the least quantity of emissions” whereas being “most impacted by local weather motion,” mentioned Ojiambo.
Climate scientists warn that rising sea ranges, frequent cyclones and meals insecurity are an existential menace to small island growing nations within the Caribbean and Pacific.
An increase of 1.5 C in world common temperatures would intensify flooding and excessive drought already skilled in Africa, residence to 32 of the world’s 48 least developed international locations.
Each scientific warnings and divisions have led the world to a “tipping level,” Ojiambo added.
A report published by the U.N. in 2023 discovered that G20 international locations are accountable for 76% of world emissions.
“If we are able to get a big quantity of huge gamers to simply get us the place we have to get to by way of these targets, that is one piece. After which we are able to work on the remainder,” she informed the Davos panel.
‘Gender lens’ funding alternative
Gender divides could possibly be a significant alternative for enterprise leaders to attain sustainability targets.
Katherine Garrett-Cox, CEO of GIB Asset Administration and chair of CDP Worldwide, a worldwide non-profit, mentioned companies should apply a “gender lens” to unlocking finance.
“Usually, female-led companies are extra involved about this subject,” she mentioned, including that enhancing funding “can be important.”
“Gender lens investing remains to be very nascent,” mentioned Garrett-Cox.
In response to gender finance network 2X Global, gender lens investing accounted for nearly $8 billion of personal market funding in 2023.
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