Business demonstrates bold action at Bonn climate talks
We Mean Business coalition
Leading businesses are demonstrating they’re committed to taking bold action towards implementing the goals of the Paris Agreement this week, at the UNFCCC meeting in Bonn.
One of India’s largest industrial conglomerates, Mahindra Group, is leading by example with the announcement that an additional 11 of its companies are now committed to set science-based targets to reduce their emissions, in line with the level of decarbonization required to keep global temperature increase below 2°C. This brings the total number of companies within the Mahindra Group, that are either committed to science-based targets, or with an approved target, to 13.
With the new commitments from Mahindra Group, the number of leading companies committed to science-based targets has now surpassed 400. This gives a clear signal to policy makers that business backs the ambition of the Paris Agreement. Another 860 more have said they will do so in the next two years, demonstrating the science-based targets are now the new normal for business.
Among the new Mahindra Group companies now committed is Mahindra & Mahindra Ltd., the largest tractor manufacturer in the world and pioneers of electric mobility in India. While Mahindra Sanyo Steel recently became the first steel company globally to have an approved science-based target. These 13 committed companies account for 98% of the entire group’s reported emissions.
In addition to committing all of the group’s companies to set science based targets, Mahindra Group Chairman Anand Mahindra has called on all of his peers to set targets for their companies and to cut their emissions in line with the goals of the Paris Agreement. He also urged all companies to seize the business opportunity of taking bold climate action.
“At Mahindra, our businesses are demonstrating that decarbonization is possible while boosting employment and investment, and innovation,” said Mahindra Group’s Anirban Ghosh. “We are already generating $400 million revenue from our green businesses. In the last 5 years, we saved enough energy to supply electricity to 14,525 Indian homes for a year.”
These announcements, along with stories of climate action from other leading companies, will be shared as part of the the preparatory stage of the Talanoa Dialogue later this week. The dialogue, which will follow the Fijian tradition of non-confrontational story telling, will set the stage for countries to assess whether they are on track to meet their commitments and identify opportunities for going further, faster toward the Paris Agreement goals.
Four companies that have been leading the way globally on climate action will take part in the Talanoa Dialogue this week: Indian multinational conglomerate the Mahindra Group, the world’s largest furniture retailer, IKEA, UK telecommunications company BT and consumer goods giant Unilever.
Many companies are finding that their action on climate is not only reducing emissions, but is also good for business. For example at multinational conglomerate Johnson Controls, energy productivity improvements have contributed to a 41% greenhouse gas emissions intensity reduction and over $100 million in annual energy savings.
Wal-Mart, the world’s largest company by revenue, saved nearly $1 billion in a single year and avoided emitting almost 650,000 metric tons of CO2, as part of its science-based target.