Climate Change Mitigation

The urgency around climate change

“Climate change is the defining issue of our time —and we are at a defining moment.” Antonio Guterres, United Nations Secretary-General, September 10, 2018.      

In response to the Paris agreement, many countries have developed long-term emission-reduction strategies or have set net-zero targets. Businesses play an essential role in meeting these goals and are feeling pressure from external influences to put mitigation plans in place:

• Regulatory: Jurisdictions around the world, including in the EU and the U.S. are introducing or proposing requirements aimed at lowering carbon emissions.¹
• Investor: Financial institutions are increasingly considering ESG practices, such as climate change mitigation, in their investment decisions and expect investees to disclose high-quality data.²
• Corporate purchasers: Buyers of goods and services are setting expectations of their suppliers to disclose carbon emissions data.³
• Consumers: Products labeled as sustainable are seeing faster growth than their conventional counterparts.⁴

Climate change mitigation risks

As concern over climate change mounts, the risks to corporations are becoming evident. Global warming poses several risks such as physical risks like flooding or drought that can damage property and transport routes, transitional risks that come as the business needs to adapt to shifting policies or buyer preferences and liability risks for those that fail to comply with regulatory expectations. Considering the potential financial and legal consequences, businesses must now consider climate change as a core business risk and not only measure the carbon footprint of their enterprises or products but also put thoughtful climate action plans in place.

Use UL Solutions for climate change services

Our talent possesses deep and broad expertise in carbon management where we have long experience in measuring such data and face climate information. By working with UL Solutions for your climate action planning and carbon footprint needs, you can satisfy the demands from corporate purchasers, consumers, investors and regulators.

Sources

1. Regulations include EU CBAM (https://taxation-customs.ec.europa.eu/green-taxation-0/carbon-border-adjustment-mechanism_en),
   EU battery regulation (https://www.energy-storage.news/european-union-in-provisional-agreement-on-recycling-carbon-footprint-regulations-for-batteries/),
   US SEC Rules (https://www.sec.gov/news/press-release/2022-46)
2. https://www.fsb-tcfd.org/about/
3. https://www.walmartsustainabilityhub.com/climate/project-gigaton#:~:text=That's%20why%20Walmart%20created%20Project,to%20help%20us%20get%20there
   https://www.unilever.com/planet-and-society/climate-action/partnering-with-suppliers-to-deliver-net-zero/
4. See facts on slide 2. https://www.stern.nyu.edu/sites/default/files/assets/documents/2020%20Sustainable%20Market%20Share%20Index.pdf