T H E 1 2 T H U N I T E D N A T I O N S G L O B A L C O M P A C T - A C C E N T U R E C E O S T U D Y DELIVER ON THE COP26 GOAL TO stands at less than one-tenth of that amount.” In addition to removing harmful barriers, Foundation, sums it up, “We need to find a DOUBLE INVESTMENT IN ADAPTATION Even with this drastic increase, financing must companies are calling on governments to take commonly accepted framework that works for FINANCING FROM 2019 LEVELS BY 2025 go to the right sources to build a more resilient an active role in setting up incentive systems most people, otherwise all we will be doing future. Accelerating adaption and resilience that support the development of sustainable is translating one framework and reporting Companies around the world do not have equal finance is key to make sure that countries can practices and spur innovation, while allowing standard to another, wasting limited resources.” access to finance that will help them achieve keep up with and protect themselves from the for the market to determine the best path for CEOs hope that these new standards will their sustainability goals. In fact, 34% of CEOs in worst climate impacts. achieving the desired outcome. Incentivizing extend globally, not just to a country or region, developing countries feel that a lack of financial programs like renewable energy infrastructure, to make sure that everyone is working towards resources is a high impact barrier to building a ALIGN INCENTIVE MECHANISMS disease discovery and prevention, sustainable the same goal. Luis Maroto, President and CEO resilient business, relative to just 18% of CEOs AND REGULATORY SYSTEMS TO food systems, and water conservation will of Amadeus IT Group S.A., explains, “Uniform of businesses in developed countries. Clearly, FOSTER INNOVATION drive towards delivery of a cleaner, more sustainability standards are necessary to this financing gap must be addressed, otherwise, sustainable world. As Gimena Peña Malcampo, move everyone in the same direction. Different even with action in the developed world, the Today’s regulatory system perpetuates old habits CEO of Pier2 Marketing, explains, “I really think standards allow for different interpretations. world will still experience significant climate and cycles, often prolonging existing problems that government encouraging businesses to To be able to keep everyone aligned and impacts. However, the question is not purely by propagating harmful subsidies, such as those follow sustainability principles would make a accountable, we need one unified standard. The about the amount of finance, but also where for fossil fuels, stifling innovation, creativity, and difference. A lot of organizations voluntarily do ideal scenario would be if governments released the funds are flowing. progress. As Krishna Mohan Puvvada, Regional it because they are passionate about it. Even those global standards.” Sanjay Banka, Executive President & Business Director, CB India of if the government cannot change laws and Chairman of Banka Bioloo Limited, adds, “There To meet the COP26 goal of doubling investments Novozymes South Asia Pvt. Ltd., states, “We regulations in the short-term, creating incentives has to be standardization of standards – both from 2019 levels by 2025 to help finance need to stop the subsidies of the past because to encourage behavior change is critical.” nationally and globally.” A standard framework adaption, specifically from climate impacts and that is not our future. We need a future that would not only help companies clarify what related effects, there need to be a significant is very different. It’s a paradigm shift that we STANDARDIZE SUSTAINABILITY data and KPIs to track themselves, but also acceleration. The annual adaptation gap report need to make – governments, society, and other REPORTING FRAMEWORKS FOR increase transparency and ensure companies just released by UN Environment Program stakeholders – so that we can work towards GLOBAL ACCOUNTABILITY are fairly evaluated on their performances. Pat (UNEP) at COP27, estimates this gap to be this new future.” The IMF estimates that on McCafferty, Managing Director of Yarra Valley USD 160 billion to USD 340 billion by the end our current trajectory, fossil fuel subsidies will Companies are finding that multiple Water, Melbourne, Australia, remarks, “What of the decade, and up to USD 565 billion by 31 an sustainability frameworks are not only confusing, increase to over USD 7 trillion by 2025, gets measured get done. Efficient measurement 2050. Secretary General Guterres reiterates, astronomic sum that remains one of the greatest but also taxing, as companies look to report and governance systems, holding countries and “Adaptation needs in the developing world are financial barriers to the clean energy transition. information through multiple formats. Vaishali companies accountable, and providing roadmaps set to skyrocket to as much as USD 340 billion It is therefore imperative that global governments Nigam Sinha, Chief Sustainability Officer of and progress reports will be key to unlocking the a year by 2030. Yet adaptation support today remove harmful subsidies of fossil fuels and coal. ReNew Power & Founding Chair of ReNew change, pace, and scale we need.” 82 31. IMF (2022) Fossil Fuel Subsidies 83