With COVID-19 infections and deaths continuing to rise and the entire world feeling the economic impact of the pandemic, getting the coronavirus under control is an immediate priority.
But recovery goes beyond plans to vaccinate the world and return economic systems to “normal.” A sustainable recovery requires a “new normal” of environmental stewardship and addressing climate change – which Bill Gates predicts could bring greater health and economic crises than COVID-19.
But working to save the planet now will also address the immediate health and economic impacts of the COVID-19 pandemic.
“The immediate post crisis period offers a small window to build back better by not wasting the $10 trillion that governments around the world are investing to alleviate the effects of the COVID-19 pandemic,” wrote World Economic Forum Founder and Chairman Klaus Schwab and Monthly Barometer Co-Founder Thierry Malleret last year.
“One way to invest smartly is to embed climate and environmental resilience into stimulus packages and recovery programmes,” they said.
A recent World Economic Forum report found that a nature-positive economy could deliver $10.1 trillion of annual business opportunities and 395 million jobs by 2030.
How to create a net-zero, nature-positive recovery
The Davos Agenda is mobilizing global leaders to work together virtually to discuss the next steps. An entire week of global programming is dedicated to helping leaders choose innovative and bold solutions to stem the pandemic and drive a robust recovery over the next year – with Day 3 (27 January) focused on enhancing stewardship of our global commons.
Capital markets can help us reach our climate change goals
The pandemic won’t disappear with a new calendar year, but there are now encouraging signs of recovery. This year we will need strong leadership from around the globe to build a better world. To create that positive change we need a new playbook, where sustainable business, the adoption of ESG principles and resilient and robust capital markets can provide the cornerstones of our economic recovery and long-term prosperity. The readiness of investors, issuers, regulators and market operators to link financing to ESG data and performance will be key to our future. Capital markets have a major role to play in financing the world’s sustainability journey – we already know that, we have all the pieces, we just now need to put them in play for a better and brighter future.
Jim Fitterling, Chairman and CEO, Dow
None of us could have predicted all the serious challenges we’d face in 2020: countless natural disasters, a pandemic, economic hardship and continued racial injustice. 2021’s onset doesn’t naturally end any of them; they are interconnected issues, not isolated problems.
To take care of our people and protect our planet, we need to work together. We must collaborate across business, government, NGOs, academia and society to invest in and create shared solutions to mitigate the impacts of climate change, improve public health, strengthen our global economy and foster greater equality and inclusion. We all desire a better, more resilient world; it’s only achievable if we come together – civilly, thoughtfully, and wholeheartedly.
‘Act like these tipping points are imminent’
Peter Giger, Group Chief Risk Officer, Zurich Insurance Group
But as COVID-19 taught us, we need to prepare for the expected. We were aware of the risk of a pandemic. We also knew that we were not sufficiently prepared. But we didn’t act in a meaningful manner. Thankfully, we have been able to fast-track the production of vaccines to combat COVID-19. But there is no vaccine for climate change once we have passed these tipping points.
Climate change will be sudden and cataclysmic. We need to act fast
We need to act now on our climate. Act like these tipping points are imminent. And stop thinking of climate change as a slow-moving, long-term threat that enables us to kick the problem down the road and let future generations deal with it. We must take immediate action to reduce global warming and fulfil our commitments to the Paris Agreement, and build resilience with these tipping points in mind.
Embed climate into risk management
John J. Haley, CEO, Willis Towers Watson
Ahead of the upcoming UN Climate Conference, I think we’ll see continued pressure to accelerate a just and orderly transition to a low-carbon, climate-resilient economy. A good sign is that environmental threats dominated senior leaders’ agendas in 2020 – even amid the COVID-19 pandemic – according to the World Economic Forum’s Global Risk Report.
To effect such change, a more strategic approach is necessary – one that not only embraces the need for a transition to a low-carbon and resilient future, but also embeds near-term climate factors into existing financial risk management strategies. Such a framework would need to take into account an organization’s people, risk and capital strategies to address the multi-dimensional nature of climate risks and opportunities.
Robert Metzke, Global Head of Sustainability, Royal Philips
2021 is the second year in the “Decade of Delivering the SDGs”. It is going to be critical to take major decisions and bring positive action to scale. This includes rethinking our economic models to become more circular, inclusive and build low-carbon solutions. Action at scale beyond our own operations means teaming up with customers and partners behind the idea that contributing to sustainable development is the only way to do business. In 2021, we will deepen and expand our partnerships to deliver solutions that make quality healthcare accessible while reducing carbon emissions in line with science-based targets and enabling service- and access-based, circular business models.
To that end, we are continuing to build coalitions to drive global change, like the Platform to Accelerate the Circular Economy. Over the past years, we have learned much about best practices and barriers. Now is the time to connect the dots, scale up and drive impact at scale.
COVID-19 has accelerated the shift to carbon-free society and many countries will heighten their efforts by introducing policies and regulations to combat climate change as the world moves into a post-COVID era in 2021. I want to emphasize that when we talk about the issue of climate change, protecting the ecosystem and biodiversity is just as important as reducing greenhouse gas emissions. COVID-19 has taught us a valuable lesson on the importance of protecting ecosystem and biodiversity. Countries, businesses and societies should prioritize making a long-term commitment to protecting and preserving the oceans and forests that support these ecosystem and biodiversity, which are not only essential for combating climate change but also for sustaining human well-being.
‘Use digital technologies as a key enabler to achieve climate goals’
Thomas Saueressig, Member of the Executive Board, SAP
Last year was defined by COVID-19, and 2021 will look no different. While I am full of hope that we will overcome the current pandemic, new health, societal or economic crises are likely to occur.
However, over the past few months, we have learned to find new ways to cope with unknown challenges. Digital technologies and modern enterprise software enable organizations and corporates to build resilient operations and sustain their supply chains. Innovative technology also supports governments, businesses, and society in providing transparency, allocating goods, and even distributing vaccines in our communities.
To bring about positive change in 2021 and beyond, organizations need to continue to use technology to address some of the current challenges that we all face. Right now, I see climate change as one of the biggest threats to humanity. As SAP’s Climate 21 initiative shows, software can support businesses in considering carbon emissions when making decisions. Moving forward, a priority for our global economy will be to use digital technologies as a key enabler to achieve climate goals. In 2021 and in the years to come, it is time to act – and technology can help.
Kevin Sneader, Global Managing Partner, McKinsey & Company
“The next normal is upon us” article
The imperative for businesses is clear along two fronts. First, businesses need to respond to the sustainability concerns of investors. It’s possible, albeit speculative, that the COVID-19 crisis foreshadows what a climate crisis could look like: systemic, fast moving, wide ranging, and global. There is a case, then, for businesses to take action to limit their climate risks – for example, by making their capital investments more climate resilient or by diversifying their supply chains.
The four transitions in this system could create over $3.5 trillion of annual business opportunities 87 million jobs by 2030
Source: Gayle Markovitz, Samantha Sault, weforum.org