Mumbai: With the UN COP26 Conference mobilized the efforts between nations to build an ambitious climate agenda, responsibility shifted to the corporation to focus on adaptation from only mitigation actions until now.
To help encourage this, the company’s goals and government regulations need to be changed to achieve the destination of decarbonization, with the company board which sets a higher bar, said a report by KPMG.
Over the past few years, despite high awareness in India with certain large corporations that start actions on the ‘green’ portfolio, this needs to move further than just ‘talk’ and to small companies & supply chains now.
Moving from climate mitigation strategies, the company will need more shooting power to meet the challenges of climate change, while the board must increase significantly, far beyond their regular role to encourage the change, the report was titled ‘Dekarbonization and evolved the role of the company’s board.
The COP26 summit was recently concluded in Glasgow – or the UN Climate Change Conference of the Parties – has lived the goal of maintaining global warming in 1.5 degrees Celsius, and will regroup in Egypt next year to update goals.
It will require the state and the private sector to immediately submit a new climate program and ambitious climate policy, including technological advancements, experts said.
With increasing climate purposes and regulations are getting tougher, organizations need to step and move beyond compliance, Head of Anish de, Head of the Global Sector (Power & Utilities) at KPMG and National Heads (Energy & Natural Resources) at KPMG India, told TII.
When companies see things related to the climate, they report only emissions.
Great change now must enable real-time decision making, and empowerment of frontline staff.
Thus it will move beyond mitigation into adaptation, which has not been below the focus until now.
For example, how to make a tough supply chain.
This will be a great cultural change (for corporations), and this is not about the short-term maximization again.
It’s about creating a level of agility of new organizations, and the Board will receive hard calls and beyond their remnants, according to De.
It is important to stay clear from ‘Greenwashing’, and instead set a goal supported by a decent action plan, real action and measurement.
Organizing a goal which is clearly supported by the right main performance indicators (KPI) which meets business needs and regulations is very important, the report said.
The corporation must adjust the implementation to be in accordance with regional priorities in the near future, even when they focus on the global decarbonization agenda in the long term.
Planning and remote actions, difficult like that, will be needed, but are combined with short-term agile actions.
Manpreet Singh, Mitra (ESG) at KPMG India, said, “The organization recognizes that stakeholders – such as investors, regulators, and customers – expect organizations to have a positive impact.
CEOs are led by the goal of following and giving commitment to a large focus on the ESG program .
Organizations need support from the government, to turbocharge climate investment.
“Even though there are challenges and uncertainty, there are enormous opportunities in funding energy transitions.
Very large capital requirements and convergence of political priorities and global investors because climate change makes this area very prospective, even when risks will require supervision, added reports.