COP26 was one of the biggest events of its type in history, with more than 40,000 registered participants (including 22,274 party delegates), 14,124 observers and 3,886 media representatives from across the globe.
Of course, high profile absentees such as China and India cast a shadow over the event, while some relatively disappointing outcomes have been roundly criticised by activists and experts alike.
However, some positive changes have emerged as a result of COP26, while there are new regulations that businesses must abide by going forward. But what are these guidelines, and why is a low-carbon strategy potentially beneficial for businesses?
A Look at the New Rules and Regulations
Large corporations, UK financial institutions and forex trading firms will all be forced to show how they intend to achieve climate change targets in the wake of COP26, thanks to the formation of newly proposed Treasury rules.
More specifically, they’ll have to set out detailed and written plans for transitioning to a low-carbon future by 2023, with any subsequent measures needing to deliver actionable results within the UK government’s 2050 net-zero target time-frame.
What’s more, an expert and objective panel will set the standards and criteria that such plans are required to meet, while ensuring that the measures are actionable and not merely spin designed to negate the new guidelines.
Of course, green groups have criticised the new measures, mainly because any commitments made won’t be mandatory. Similarly, firms and shareholders will have the autonomy to decide how their firms adapt to the transition, including the key decarbonisation methods that they look to follow.
The government has been quick to respond, however, by claiming that the rules have been designed to increase transparency and accountability rather than make firm-level net zero commitments mandatory.
The Benefit of Decarbonisation
Such concerns aside, most firms are likely to pursue decarbonisation with relish in the modern age, with this now a key staple of business strategies across an array of industries.
This is because there are numerous benefits of decarbonisation, and we’ve outlined a selection of these below.
- #1. Cutting Costs: Let’s start with the basics; as a reduction in carbon emissions is synonymous with reduced energy costs. So, by cutting emissions and switching to renewable energy sources where possible, firms will manage their operational budgets more easily and potentially optimise their profitability over time.
- #2. Embrace Opportunities to Learn: While some renewable energy incentives have been removed in recent years, businesses can still access schemes that enable them to earn as they transition from fossil fuels. What’s more, you can earn money by reselling the excess energy generated by solar panels to the grid, creating even more earnings over time.
- #3. Attract New Employees: Not only are customers more likely to partner with socially responsible brands, but the same rule applies when attracting and retaining talent. More specifically, investing in low-carbon strategies and sustaining these over time can help to enhance the long-term ability of your workforce, boosting the business as a whole.
