T H E 1 2 T H U ALIGN NATIONALLY DETERMINED sustainable action through market methods. Case Study N I T CONTRIBUTIONS (NDCS) TO A 1.5°C As Ana Botín, CEO of Banco Santander, states, E IBERDROLA D N WARMING TRAJECTORY “If we want habits, decisions to be changed, A T I O we need to change incentives, pricing and N The ambition of global climate pledges needs to S G signals to the market.” Birds, Biodiversity and Wind Energy L O be raised. At today’s level of commitment, the B A world is on track to increase temperatures 2.5°C L C REALIZE A GLOBAL BIODIVERSITY Iberdrola, the Spanish renewable energy company, O M above industrial levels by the end of the century, P FRAMEWORK THAT SETS AMBITIOUS has announced a new objective of achieving a A C which could have disastrous repercussions. CEOs T - TARGETS TO HALT BIODIVERSITY LOSS net positive impact on biodiversity by 2030. A are therefore demanding more from governments, C C They are applying a comprehensive approach to E N asking them to align NDCs to the 1.5°C targets.The majority of CEOs (80%) recognize that their T new infrastructure construction, and integrating U R business impacts biodiversity, yet only 35% nature considerations into the impact assessment E C E Over 70 countries have pledged to reach net zero are initiating nature protection and restoration of new projects moving forward. O S T emissions, including some of the world’s largest projects in response to global challenges. As Bank U D emitters – such as the United States, China, and al Etihad CEO, Nadia Al Saeed, says, “Loss of Y the European Union – amounting to approximately biodiversity is an economic and financial risk. As a leader in offshore and onshore wind 76% of global emissions.29 development, Iberdrola is focusing on its Despite these pledges, They both depend on the ecosystem services impact on birds and bats for all projects moving few governments have solidified NDCs that are provided by biodiversity and the environment. forward. By adopting more ambitious monitoring ambitious enough to make a 1.5°C future a reality. In turn, our investment decisions affect the programs, Iberdrola is able to better understand Recognizing this gap at COP26, the Glasgow biodiversity around us, and more companies how different species are interacting with their Climate Pact called on countries to strengthen need to adopt that lens when making assets. They are also looking to improve these their NDCs when returning the following year investment decisions.”monitoring systems, exploring how to deploy the to COP27. This effort fell short, however, with latest available technology and invest in emerging only 24 new or updated climate plans at COP27, CEO inaction can be traced back to the solutions, such as pairing cameras and radar with a strong contrast to the 163 countries offering uncertainty around the biodiversity business case AI, aerial monitoring, and GPS technology. no updated target. This highlights the need for as well as how to measure biodiversity impacts governments to take bold action and strengthen and actions. As Representative Director and their NDCs immediately. President of Nippon Koei Co., Ltd., Hiroaki Shinya, As an example, in their wind farm in Southern says, “Regarding biodiversity, there is no definite California, Iberdrola has implemented geofencing COOPERATE TO ESTABLISH as well as universally (commonly) accepted technology to monitor the risks to the California A GLOBAL CARBON PRICE criteria yet for judging which direction to proceed condor. A majority of condors in the southern for maintaining/conserving diversity. Therefore, California population have been equipped with CEOs consistently note that without a common, I feel that the majority of companies are still not radio frequency and GPS technologies to track equal set of standards, the world will never be sure how to act in relation to biodiversity.”their movements. When a condor fitted with a able to achieve the Global Goals, and climate transmitter crosses the geofence boundary, impacts will continue to intensify. Alexandre While the Taskforce on Nature-related Financial a third party remotely supervising the condor’s Ricard, Chairman & Chief Executive Officer Disclosures (TNFD) is a start, there is a need movements notifies the Avangrid Renewables of Pernod Ricard, explains, “We have a basic for a globally accepted standard, supported National Control Center and by tracking the birds’ sustainability framework globally, but the playing by governments, to kickstart company action flight trajectory can decide to stop a particular field is not level still. We have work to do.” on biodiversity conservation. Fortunately, at wind turbine to avoid a possible collision. COP15, nearly 190 countries approved a new Furthermore, Iberdrola looks to shutdown energy To encourage global action – and accountability United Nations agreement to prevent further generation in certain hours when bats are active to – on carbon emissions, CEOs are requesting biodiversity loss. Among a suite of 23 measures avoid collisions. These measures not only protect governments cooperate to establish a global to protect nature, the most notable is the 30x30 species, but also allows the company to better carbon price. The International Monetary Fund target, which aims to safeguard 30% of the understand the ecosystem and how species interact (IMF) notes, “An international floor price for world’s land and sea by the end of the decade. with its infrastructure. This information helps carbon could speed the world’s transition to Though the agreements at COP15 are a step Iberdrola, in collaboration with conservation green energy without compromising countries’ in the right direction for biodiversity protection, organizations, regional and national governments, 30 and research institutions, develop better competitiveness.” This would ensure further government regulation is needed to equal impact across sectors, and encourage mobilize private sector contributions.mitigation tactics to protect biodiversity. 29. United Nations (2022) For a livable climate: Net-zero commitments must be backed by credible action 8030. IMF (2022) Why Countries Must Cooperate on Carbon Prices 81