IMD-OWPLIVE22-PostEvent-Report

Business Insights

Climate change is a major threat to international peace and security. Rising temperatures are fueling environmental degradation, natural disasters, extreme whether events, food and water insecurity, economic disruption, and conflict. These impacts are a symptom of resource-intensive industrial production in the dominant “dig, burn, dump” economy. Addressing only carbon emissions without challenging the growth-at-all-costs economy doesn’t resolve the

real climate crisis. We need an energy transition to a zero- carbon economy. Many business leaders say they recognize this, but what is needed is concrete action that goes beyond earnest statements of intent. There is a clear incentive for businesses to innovate, reduce and eliminate their climate footprint, transform their organizations to better compete now and in the future, and to better serve the needs of society.

However, this transition to a zero-carbon economy needs to be just and equitable so that none are left behind. This means shifting from an extractive economy to a regenerative economy while protecting those individuals, companies, sectors, and societies that stand to lose out economically. For example, Poland is the only member of the EU refusing to commit to carbon neutrality by 2050 because it generates about 80% of its electricity from coal – a sector that supports 90,000 jobs.

THE ROLE OF BUSINESS IN THE ‘JUST TRANSITION’ THAT LEAVES NO ONE BEHIND

Through their investments in renewable energy, clean technology, and the creation of jobs, businesses can help spread the benefits of a green economy more widely.

FRANCISCO SZEKELY Adjunct Professor of Sustainability Leadership

26

27