Today’s alarming and sobering assessment from the Intergovernmental Panel on Climate Change (IPCC) details the impacts of climate change as a threat multiplier that exacerbates risks to ecosystems, biodiversity, economies, and society. The report affirms that the global climate crisis is worsening — while we still have a window to act, it is closing rapidly. We need urgent collective action from world governments and the private sector and the public to accelerate real progress and turn things around at the pace and scale necessary, Ceres said in a statement.
“The IPCC continues to remind us of the nightmare we have been living for decades: Our world is on fire and the irreversible impacts keep getting worse and worse,” said Mindy Lubber Ceres CEO and President. “Every capital market player within the economy—investors, companies, policymakers, and regulators—must step up action to tackle this growing crisis while we still have the opportunity to avoid its worst impacts and seize the opportunities that come with decisive action.”
Today’s IPCC report, the most recent comprehensive review of the world’s climate science, unequivocally lays out the catastrophic damage that will hit our ecosystems, communities, and economies as global temperature rise approaches 1.5 degrees Celsius. While the report highlights the importance and potential of adaptation, it also clearly shows that adaptation alone will not be enough, warning that we will see more deadly heat waves, water shortages, crop failures, biodiversity loss, and irreversible destruction of the natural world if global warming is not brought to a standstill.
Lubber added:
The bottom line is that we must move at a greater pace and scale to cut emisÂsions in half by 2030 and achieve a net zero emissions economy by 2040. We must ensure that adequate global financing is available to countries and regions already desperately in need of support for adaptation and access to clean energy and water. It is clearer than ever that the costs of inaction will be far greater than any costs related to action. Policies that spur investment in clean energy and energy efficiency, and promote global resilience, will not only help prevent climate disasters and human suffering—they will improve energy affordability and security, ensure greater environmental justice and equity, and help U.S. businesses remain competitive around the globe.
Through Climate Action 100+ and the Ceres Ambition 2030 initiative, the largest investors and companies have the opportunity and responsibility to decarbonize some of our heaviest-emitting sectors including electric power, food, oil and gas, steel, banking, and transportation — which together are responsible for up to 80% of global emissions. Companies must address “Scope 3” indirect emissions to spur action across the full supply and value chains, and banking institutions must move to address climate as a systemic financial risk. And, every investor and company must publish climate action plans that underpin commitments and lay out concrete actions that reduce their carbon footprint, including specifics on how they will reach short- and medium-term emissions reduction targets.Â
Congress must move quickly to pass a federal reconciliation bill with historic investments in clean power, transportation, industry, and agriculture. It is critical that policymakers prioritize the needs of the poor and marginalized communities most overburdened by the climate crisis and put addressing environmental injustices at the heart of any policy or regulation. That includes supporting state and federal initiatives like Justice40, a White House coordinated whole-of-government effort to advance environmental justice and spur economic opportunities for disadvantaged communities.The U.S. Securities and Exchange Commission must release the strongest standardized climate risk disclosure rules that will help investors and companies better measure and manage climate risks. The federal procurement process must also be revised to factor sustainability in government purchasing. The government could use its role as the largest purchaser of products and services, spending $665 billion annually to spur demand and innovation, driving down costs for the rest of the market while creating green jobs across sectors.
We can make further strides to slow global warming while unlocking the massive opportunities that the transition to net zero represents for economic and job growth and a more equitable world.
The IPCC report comes as Russia’s invasion of Ukraine has caused supply chain disruptions and spikes in the prices of oil and gas.
“Oil and gas producers and governments should not use this spike as a justification to set aside their clean energy commitments in favor of more fossil fuel extraction that we know will lead to further long-term environmental and societal impacts for all of humanity,” Lubber added. “New fossil fuel infrastructure and gas export terminals are not a path forward. A stronger reliance on affordable and clean renewable energy will decrease the destructive geopolitical influence of extractive industries and insulate economies from the energy price volatility and market swings of fossil fuels.
About Ceres
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.