Climate change and development goals cannot be pursued separately. Their interrelatedness finally has been recognized by including climate change as an SDG. "SDG No. 13: Take urgent action to combat climate change" highlights an important milestone as the issue was not addressed through the Millennium Development Goals (MDGs).
Eyes are on the Paris climate talks later this year where the new international agreements aimed at keeping global warming below 2 degrees Celsius will be determined. A warming climate will affect the availability of freshwater, food security and energy, among other necessities.
"Companies need to show governance by making their stance about climate change clear from lobbying for climate change causes to joining meaningful pledges"
This is already being observed globally with countries experiencing changes in rainfall, more flooding, droughts, intense rain and more frequent heat waves. A common responsibility falls on all states to protect the environment, while recognizing the different circumstances each state faces in their ability to tackle the problem. This responsibility should be extended to companies where action needs to be taken in accordance to circumstances and potential.
SDG No. 13 has set out a number of global targets which countries need to take ownership of and define the specific responsibilities and targets befalling them.
So what can companies do?
The role of business is ramping up, but it is currently not enough. Many types of risks face businesses, including climate change policy risk, reputational risk and market risks. It is in business' best interest to act fast to reduce this and seize opportunities such as new investments or new revenue streams. HSBC already has realized the potential of this field and has created new climate change indices (PDF) that can be invested in through the bank. Further benefits are outlined in Citi's (PDF) report, which states that $2 trillion savings will be generated if we move towards a low-carbon economy. There are many interrelated actions companies can take and are already taking to respond to SDG No. 13.
"There is a common responsibility falling on all states to protect the environment. ... This responsibility should be extended to companies"
The development of radically innovative technology and processes will continue to be one of the crucial solutions to not just mitigate climate change effects, but even reverse them. Biomimicry is one such fascinating field. Examples include solar cells inspired by leaves or companies such as Whale Power, which studies whale fin design to improve the efficiency of wind turbines. Companies need to show governance by making their stance about climate change clear. This ranges from lobbying for climate change causes to joining meaningful pledges. There is good news in this field recently with 13 large U.S. corporations joining a series of climate change pledges worth $140 billion in green investments, or Norway’s sovereign-wealth fund excluding four companies from its investment portfolio due to concern around the companies' creating severe environmental damage. There is a need to cooperate by bringing together mutually beneficial partnerships between the private, public and voluntary sectors, such as the private-public partnership among Pepsico, the U.N. World Food Program and the United States Agency for International Development to promote long-term nutritional and economic security in Ethiopia by increasing chickpea production.
In closing, to tackle SDG No. 13, one element stands out as being absolutely crucial to goal achievement: urgency.
Source: www.greenbiz.com