Climate leaders from across sectors and around the world gathered in New York City at the end of September for New York Climate Week. Over 600 events throughout the city addressed energy, environmental justice, finance, nature, transport and more, with executives in the sustainability space sharing their latest approaches to and experiences of climate-related strategies, risks and opportunities.
Expert insights from Climate Week show that to drive change, corporate sustainability practitioners should:
- Focus on the business case for sustainability.
In the words of one panellist, “Sustainability fuels performance”. A former CEO shared that he faced pushback when his sustainability narrative centred on ‘doing the right thing’. When he, instead, focused exclusively on the business case – highlighting how sustainability could help his firm grow and cut costs – he was able to make real progress. Several speakers also made the case that businesses benefit from sustainability initiatives despite ESG backlash. Politics are just one consideration, and global trends are at least as important as what happens in individual countries.
- Recognize that policy will drive action.
In many cases, policies enhance the business case for climate action. There was overall agreement that CFOs have been getting more involved in sustainability. For many finance departments, the need for auditable data – required by regulations such as the Corporate Sustainability Reporting Directive (CSRD) – and growing compliance risks have been key motivators. However, mandatory reporting is not the only type of regulation that firms worry about. One speaker presented data showing that the most effective policies are those that force or provide financial incentives for emission reductions. Policies can present real risks for businesses and help align the private sector with climate science.
- Identify climate risks on business-relevant timescales.
There was consensus that climate risks are becoming more significant, and now demand attention. However, when discussing climate risk management, multiple speakers raised the issue that climate scenarios often consider longer timescales than most business decisions. One panellist said that she has observed a push within financial institutions to create short-term climate scenarios. At another event, a speaker raised the issue that firms need to understand current risks before thinking about the future, and that building resilience to present uncertainty will increase resilience to climate change.
New York Climate Week 2024 focused on action. Attendees at the event emphasized the importance of collaborating and sharing lessons learned; hoping that doing so will push both public and private sectors toward a more sustainable and resilient world.
