New analysis of Paris Agreement identifies market opportunities as more companies move to take bold climate actionWe Mean Business
‘What Paris means for business’ analysis urges companies to seize market opportunities worth trillions of dollars created by Paris
Surge in companies from around the world taking bold climate action following Paris Agreement
Over 100 Fortune 500s and others call for swift action on EPA’s Clean Power Plan
- New and expanded market opportunities
- Opportunities to align investment decisions to long-term policy certainty
- Benefits from policy coherence across borders and into new markets
- Increased investor confidence in managing climate risks
- The UNFCCC’s Nazca Portal contains over 4,000 commitments by companies, cities, subnational regions, and investors to address climate change.
- 397 companies with total revenue of $7.9tn & 183 investors with AUM in excess of $20.7tn have made 951 commitments through We Mean Business.
- 58 companies have committed to procure 100% of their electricity from renewable sources in the shortest practical timescale through RE100.
- 147 companies, an additional 33 since COP21, have either set or have committed to setting science-based emissions targets through the Science Based Targets initiative; this commitment is one of the commitments upheld by We Mean Business.
NEW YORK CITY – April 20, 2016 – A new analysis, ‘What Paris means for business’ published today, just hours before world leaders convene at the United Nations to sign the historic Paris Climate Agreement, highlights market opportunities worth trillions of dollars arising from the agreement and urges the private sector to take action now and bring clean energy and prosperity to all.
Experts from We Mean Business – a coalition of organizations working with thousands of the world’s most influential businesses and investors – have analyzed the details of the Paris Agreement to identify key policies relevant to global business and translated it into an accessible form for a private sector audience.
All major economies are committing to restructuring their energy systems, changing transport patterns, and transforming infrastructure, buildings and land use. Collectively, the national climate plans under the Paris Agreement represent at least a US$13.5 trillion market for the energy sector alone in energy efficiency and low-carbon technologies through 2030.
Edward Cameron, Head of Policy for We Mean Business said:
“Paris is an unprecedented international agreement and a defining moment for the global market. The governments of the world have spoken with one voice and have committed to decarbonizing the global economy during this century. Trillions of dollars of market opportunity await businesses with the foresight to lead across their entire value chains. The We Mean Business campaign provides the platform for business to seize this market.”
The analysis provides insight into what companies should expect as the economy undergoes a deep transformation post-Paris. It includes:
The volume of private sector climate action is accelerating fast. Fifty one new leading global companies, making sixty two separate commitments, including Aveda, Peugeot Citroen, Bloomberg, Tiffany & Co, Ferrovial, Sky, HP, Toyota and many more, have joined the We Mean Business coalition in the immediate aftermath of the Paris Agreement, recognizing the agreement’s immediate and long-term implications for business operations, supply chains, investor preferences and consumer demand in the global marketplace. They are taking implementation steps like powering their operations with 100% renewable energy, using an internal price on carbon, and setting science-based emissions reduction targets. Leading businesses taking strong climate actions benefit from an average 27% internal rate of return on low-carbon investments. A full list can be found in Notes to Editors.
Global businesses already at the forefront of climate action such as Google, Ikea and one of India’s largest conglomerates, Mahindra & Mahindra, have continued to push ahead with new initiatives to further invest in clean energy and new technologies as a direct result of the successful Paris Climate Agreement.
Anirban Ghosh, Chief Sustainability Officer, Mahindra & Mahindra said:
“As we strive to keep average temperature rise well below 2C, we must stretch every sinew to enhance energy productivity, an increasingly expensive resource. Mahindra is delighted to become a part of EP100, a program that drives breakthrough energy productivity. The heightened conversation on sustainability has led to the incorporation of climate change related risks in the risk registers of the different Mahindra Group businesses.”
Steve Howard, Chief Sustainability Officer, Ikea said:
“Everyone, including policymakers, business and civil society, needs to work together in delivering actions and solutions that facilitate a rapid transition to a low carbon economy. At IKEA, we are committed to do our part. We will continue to invest in renewable energy and to transform our business. By 2020, we will produce as much renewable energy as the energy we consume in our own operations.”
Michael Terrell, Head of Energy Policy, Google Inc. said:
“Companies are making big bets in clean energy to fight climate change and because it makes business sense. At Google, we have committed to purchase over 2 gigawatts of renewable energy and are the largest non-utility renewable energy purchaser in the world. We believe we can tackle climate change in a way that will spur innovation and growth and benefit us all.”
In a further show of support for the Paris Climate Agreement, over 100 business giants have called for swift action on the U.S. Environmental Protection Agency’s Clean Power Plan and investment in the low carbon economy at home and abroad.
The companies, including IKEA, Mars, PG&E, Salesforce, General Mills, Kellogg’s, HP, and Starbucks released a statement organized by a coalition of groups, including the nonprofits Ceres and World Wildlife Fund, during a teleconference today.
In the statement, the signatories pledged to do their part to “realize [the Paris Climate Agreement’s] vision of a global economy that limits global temperature rise to well below two degrees Celsius.” They also called on U.S. leaders for an investment in the low-carbon economy at home and abroad to give financial decision-makers clarity and to boost investors’ confidence worldwide.
Barry Parkin, Chief Sustainability Officer, Mars said:
“We are hopeful that continued leadership and progress by the business community will encourage the U.S. to follow through on its COP21 commitment and to successfully implement the Clean Power Plan.”
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Notes to editors
ABOUT WE MEAN BUSINESS
We Mean Business is a coalition of organizations – BSR, CDP, Ceres, The B Team, The Climate Group, The Prince of Wales’s Corporate Leaders Group and WBCSD – working with thousands of the world’s most influential businesses and investors. These businesses recognize that the transition to a low carbon economy is the only way to secure sustainable economic growth and prosperity for all. To accelerate this transition, we have formed a common platform to amplify the business voice, catalyze bold climate action by all, and promote smart policy frameworks. More information at www.wemeanbusinesscoalition.org.
Below is a list of companies that have made new commitments since the Paris Agreement was signed. There are 62 new commitments from 51 companies:
Carbon Pollution Reduction Scheme Exchange Pty Ltd
Coca-Cola Femsa Sab-Ser l
Coca-Cola HBC AG
Coway Co Ltd
EDP – Energias de Portugal S.A.
Femsa – Fomento Economico Mexicano
International Post Corporation (IPC)
Kawasaki Kisen Kaisha, Ltd.
Mayr-Melnhof Karton Aktiengesellschaft
MS&AD Insurance Group Holdings, Inc.
NH Hotel Group
Nomura Research Institute, Ltd.
Obrascon Huarte Lain (OHL)
OpenConcept Consulting Inc.
Oriflame Cosmetics AB
PSA Peugeot Citroen
Sopra Steria Group
Tiffany & Co.
Toyota Motor Corporation
Weatherford International Ltd.
Yokohama Rubber Company, Limited
The Ceres-led sign on statement on business support for the EPA’s Clean Power Plan, including a full list of signatories, can be found here: http://lowcarbonusa.org