Global Warming Breaks 1.5°C Barrier: Urgent Call for Climate Action Intensifies

The relentless march of global warming has breached a major threshold, as confirmed by the EU’s climate service: for the first time, the average global temperature has exceeded 1.5°C over an entire year. This sobering milestone, initially aimed to be avoided in the Paris Agreement, signals a critical juncture in humanity’s battle against climate change. While this breach doesn’t constitute a direct violation of the accord, it underscores the pressing need for immediate and decisive action to curb carbon emissions.

Unprecedented Temperature Surge:
The period from February 2023 to January 2024 witnessed a staggering 1.52°C of warming, according to the EU’s Copernicus Climate Change Service. This unprecedented surge in temperatures far surpasses previous records, painting a grim picture of our planet’s trajectory if left unchecked.

Source: ERA5, C3S/ECMWF

Impacts of Exceeding 1.5°C:
The consequences of surpassing the 1.5°C mark are already evident in weather patterns: floods, droughts, heatwaves, and wildfires ravage communities worldwide. For business, managing risk becomes all the more challenging, as the frequency and severity of these weather events become more unpredictable; making planning and forecasting more difficult.

Political Backpedalling on Climate Commitments:
Against the backdrop of this, political shifts raise concerns. The Labour Party’s abandonment of its ambitious £28bn green investment plan, coupled with the Conservative Party’s reluctance to commit to essential targets and provide leadership, signify a worrying trend of scaling back climate pledges.

Tracking the Warming:
The warming trend extends beyond terrestrial realms; the world’s sea surface temperatures have soared to unprecedented levels.

Human activities, notably the continued burning of fossil fuels, remain the primary drivers of this relentless warming trend. While natural phenomena like El Niño provide temporary boosts to temperatures, the overarching influence of human-induced emissions cannot be ignored.

Despite the impending end of El Niño conditions, projections indicate a continued rise in temperatures, underscoring the imperative for sustained efforts to reduce carbon emissions.

Conclusion:
As the world grapples with the ramifications of surpassing the 1.5°C threshold, the urgency for decisive climate action needs to intensify. Solutions are available and small changes make a difference. While there are many challenges ahead, collective resolve to mitigate climate change offers a glimmer of hope; and business has a key part to play, ensuring action within an organisation and conducting essential due diligence on supply chains to ensure all aspects align to reduce carbon emissions and footprints.

With collective concerted efforts, humanity can steer away from the precipice of an irreversible climate catastrophe and forge a sustainable path forward. However, we cannot rely on policy makers to make this happen, it will fall on business and individuals to take action and seek to reduce risks and shape matters for the future.

The old adage – if you want something doing…

In the face of escalating climate challenges and a future marked by soaring temperatures, a clarion call is resonating. Businesses must step up where governments are falling short. The urgency of the climate crisis demands a collective and sustained effort from the private sector to give meaningful change.

As Figure 1 illustrates, we are on track to miss the Paris Agreement goal by a significant margin.

1. The Global Imperative: As temperatures continue their upward trajectory, recent reports from Climate Action Tracker (CAT) underscore the inadequacy of current government measures to curb climate change. Projections indicate that without decisive action, we are on track for a future characterised by unprecedented environmental challenges with significant risks to current business models.

2. Business as a Catalyst for Change: Recognising the limitations of government action, businesses are now positioned as critical players in the fight against climate change. In some regions, such as the EU, this is being implemented through legislation. The ESG Benchmarks Assessment process encourages the need for a paradigm shift in corporate practices, urging businesses of all sizes to integrate sustainability into their core operations.

3. ESG Benchmarks’ Assessment: ESG Benchmarks, in alignment with global standards and principles, has developed a robust assessment system. This tool empowers organisations to benchmark their environmental, social, and governance practices independently. It provides a clear roadmap for businesses to identify areas of improvement, align with net-zero goals, and foster a culture of sustainability.

4. Collaborative Supply Chain Strategies: ESG Benchmarking can be extended beyond individual organisations, encompassing supply chains. By influencing and managing suppliers towards ESG goals, businesses can amplify their impact and contribute to a more sustainable ecosystem helping tackle the global issues.

5. Building Resilience and Value: ESG practices not only mitigate environmental risks but also build resilient business models. By embracing sustainability, businesses can future-proof their operations, enhance brand reputation, and create enduring value for shareholders and stakeholders alike.

Conclusion:
The time for rhetoric is over; action is imperative. Business irrespective of size, must embrace their role as agents of change. The collective adoption of sustainable practices is not only a moral obligation but a strategic imperative for the prosperity of our planet and future generations.

Source: Climate Action Tracker (2023). The CAT Thermometer. December 2023. Available at: https://climateactiontracker.org/global/cat-thermometer/ Copyright © 2023 by Climate Analytics and NewClimate Institute. All rights reserved.

Moving to the circular economy – potential business benefits

Many organisations still operate a traditional or linear business model. They may do a little recycling, but could more be reused or recycled.

We all know that recycling is good for the planet, but did you know it can also be great for your business? Picture this: your company is churning out products day in and day out. But what happens when those products reach the end of their life? Traditionally, they might end up as waste, costing your business disposal fees and harming the planet. But hold on, there’s a smarter way to operate – enter the Circular Economy.

The Circular Economy isn’t just about being environmentally friendly; it’s about being financially savvy too. Instead of the usual “make, use, dispose” cycle, this model encourages you to rethink your process. Imagine designing products that can be easily repaired, refurbished, or disassembled for parts. This isn’t just a nod to sustainability; it’s a strategic move that can save your business costs.

When you incorporate recycling into your business model, you’re not only reducing the amount of raw materials you need but also cutting down on production costs. Why? Because recycled materials are often cheaper than brand-new ones. Plus, as more companies catch on to the Circular Economy trend, demand for recycled materials is on the rise – potentially turning your waste into a profitable resource.

You may think this does not apply to me, we are a service business, we do not make things, but to provide services, we have inputs to create the services, be that power or technology assets or other items which need challenged.

The Circular Economy breathes new life into repair and refurbishment services. Imagine your business being known for extending the lifespan of your products through quick and cost-effective repairs. It can also be reimaging how you use existing assets, and ensuring you get maximum value.

This isn’t just about providing a valuable service to your customers; it’s about creating a new revenue stream for your business. And critically, research is showing consumers are on board with this. People today want to support businesses that align with their values, and sustainability is at the top of the list.

When your business embraces the Circular Economy, you’re not just reducing your environmental footprint; you’re also attracting sustainability conscious customers who are willing to pay a premium for products that contribute to a better environment.

But it doesn’t stop there. Funding entities and investors are increasingly focussed on the sustainability posture of business in their assessment criteria. They are looking to lend to or fund companies who are doing the right thing. Your commitment to recycling and reducing waste could unlock financial support that helps your business thrive in a competitive market.

In conclusion, the Circular Economy isn’t just about being “green.” It’s about making strategic choices that can boost your bottom line. From cutting production costs with recycled materials to tapping into the growing demand for services which fit growing consumer demand, this approach has the potential to revolutionize your business model.

So, business leaders, as you navigate the ever-evolving landscape of commerce, consider the Circular Economy not as a trend, but as an opportunity. By aligning your business with sustainability, you’re not just doing good – you’re securing a profitable future that benefits both your company and the planet. That’s a win-win situation!