Net-zero targets top my COP26 wishlist

There’s no doubt the UN climate conference set to convene next week in Glasgow will have momentous implications for humanity’s future. But amid the many critically important scientific, diplomatic and economic aims of COP26, I have set my own personal priorities.

 And at the top of my wishlist is an ambition for every business in Europe to be fully engaged in meeting net-zero emission targets as rapidly as it can. I see COP26 as a form of crusade galvanising companies to collaborate in our planet’s greatest endeavour.

We know targets work. Our research found companies with targets, decreased their greenhouse gas emissions by 10% over the last decade, while those without saw their emissions increase. Not only do they enable net-zero to be managed like any strategic business priority—but making them public also fosters this essential collective momentum.

In short, the Glasgow conference is not simply about global willpower, it is about nurturing a new co-operative ethos among businesses towards a common aim.

 Stepping up

The main goal of COP26 is clear: to fulfil the Paris agreements by rapidly reducing greenhouse gas emissions as soon as possible and limit global warming to 1.5 degrees. When we translate this into a strategy for action, it depends overwhelmingly on targets.

To hit net-zero by mid-century, European businesses must leverage digital technologies, overhaul supply chains, and rigorously manage emission reduction plans. According to our research, businesses have made huge progress since Paris and their efforts have accelerated in recent years, with almost one-third (30%) of Europe’s largest listed companies now having pledged to reach net-zero by 2050.

But much more is needed, and fast. Just 5% of European companies are on track to achieve net-zero target dates in their operations at the current pace of cuts, with only 9% set to meet a 2050 target.

Visionary leadership

When it comes to this ambition, there’s real commitment—but also a gap between what companies want to achieve and their capacity to do so. Our research with the World Economic Forum found that companies’ environmental, social and governance (ESG) aims often outpace their ability to deliver.

This underlines the critical importance of leadership: chief executives must play the most inspirational role in driving the net-zero agenda, by spearheading a cultural revolution throughout the business. Forging a radically new mindset reflects what is at stake—saving our planet—yet both are within reach.

Key to better sustainability performance and value creation is for leaders to set a stakeholder-centric sustainable “purpose” for operations—and then embed management practices to achieve this. To help, we have identified the “Sustainability DNA” comprising best practices, systems and processes, and created the Sustainable Organization Index to score companies on ESG.

While solutions vary by industry and company, the common denominator is the need for reinvention driven by innovation, collaboration, new business models and supportive regulation. A radical embrace of digital solutions like artificial intelligence and the cloud is crucial for a rapid, focused transformation to sustainable products and supply chains.

European authorities need to agree clearer environmental impact standards and common reporting mechanisms, and companies must collaborate more extensively. By embracing these changes with purpose and passion, businesses can ensure COP26 is a turning point—and I can fulfil my wishlist.

We have a busy agenda ahead of us, including over 30 sessions streamed live from our Accenture venue, and I invite you all to join us by registering here. See you all—virtually or in person—in Glasgow!