Climate Action
“Sustainable climate action must be just, inclusive and respectful of human rights.”
Eric Usher Head, UN Environment Programme Finance Initiative Page 02
www.globalcause.co.uk
“Cities’ commitment to strengthening their climate resilience has become ever more critical.”
Multiple authors, OECD Page 06
Featuring insights and reflections from COP29
Private sector collaboration is essential to rapidly deploy DRE solutions, reaching
Advancing COP29 climate finance targets through a human rights approach
Following ambitious new climate finance targets set at COP29, there is a growing consensus that a fair and inclusive human-rights-based approach is essential for effective climate action.
-Multiple Authors, World Bank
Human rights are one of the four thematic areas shaping the banking industry’s approach to climate finance over the next five years. Integrating human rights considerations into climate and nature-based investments is not just ethical; it is essential for sustainable development and good business practice. The UN Environment Programme Finance Initiative (UNEP FI) annual Global Roundtable will urge finance industry leaders to take concrete steps towards achieving COP29’s climate goals while being inclusive of human rights.
Integrating human rights into climate finance
High-profile incidents, such as the Brumadinho dam disaster in 2019, underscore the risks of sidelining human rights in project financing. The dam’s collapse released 12 million cubic metres of tailings, killing 270 people. This tragedy, caused by ignored safety warnings and inadequate oversight, highlights the severe consequences, including reputational damage and legal costs of failing to incorporate human rights considerations.
role in promoting a just transition to lowcarbon, climate-resilient economies. The report also addresses approaches to managing the environmental, social and economic impacts of sustainability transitions. Key recommendations for financial institutions include committing to a just transition strategy while integrating these considerations into their organisational structures, products and services.
Human rights central to future climate discussions
Human rights will undoubtedly remain central to climate finance discussions.
Human rights will undoubtedly remain central to climate finance discussions at future COPs. This reflects a growing understanding that sustainable climate action must be just, inclusive and respectful of human rights. By advocating for climate financing that addresses both environmental and social objectives, organisations can lay the groundwork for a human rights-based approach to climate finance. This will benefit the planet and its people.
Leveraging climate finance for a just transition Financial institutions are increasingly recognising the importance of human rights and developing policies aligned with the UN Guiding Principles on Business and Human Rights (UNGPs). Many banks are implementing human rights due diligence (HRDD) processes to identify and address potential human rights risks in their operations and client supply chains.
The UNEP FI’s report, Just Transition Finance: Pathways for Banking and Insurance, elaborates on how financial institutions can play a pivotal
Mangrove forests are vital for coastal protection, carbon storage and biodiversity.
-Eric Usher Head of the
UN Environment Programme Finance Initiative
How the right ESG strategies build long-term business resilience
Companies should strategically consider environmental, social and governance (ESG) because it brings a competitive advantage, builds resilience, and future-proofs businesses.
It can be tempting for companies to take a shortterm view of their ESG responsibilities. As long as they’re ticking the box marked ‘compliance,’ they’re happy to move on to the next matter. Yet, that misses the point of ESG completely, insists Deborah Praga, Global ESG Director at leading global consultancy AlixPartners.
ESG builds a competitive advantage and resilience
“There are very real environmental disruptions coming down the tracks that are
going to impact businesses in serious ways,” says Praga. “Say, you sell coffee or chocolatebased products. You might not be able to do so in 20 years if those ingredients aren’t easily available. As consultants, we help our clients build resiliency and plan for the long term. We don’t simply leave companies with a glossy report of our findings, either. We roll up our sleeves and operationalise our recommendations.” Only after real action do ESG practices become a bonus as a marketing tool and employer brand benefit.
Recognising the big-picture benefits of ESG
Some are already well aware of the intrinsic value of a robust ESG strategy. “For instance, AlixPartners is working with a British consumer products company that wants help with corporate sustainability reporting,” says Praga. “This involved taking a deep dive into their supply chain, which uncovered areas for optimisation. We found new opportunities that could help reduce reliance on certain markets or product mixes in the future.”
It’s always gratifying when clients see beyond compliance and recognise the ‘big picture’ benefits of ESG, admits Praga — such as a French furniture brand that manufactures products in Asia. “They wanted to understand if reshoring their product line would help minimise costs and improve sustainability,” she remembers. “So, we analysed the carbon, labour, cost and environmental implications of bringing their production back to Europe. They could then weigh each factor and decide what made the most sense. They wanted to do what was best for their business and the planet but understood that they didn’t have all the answers. That’s where AlixPartners comes in.”
Global leaders tackle renewable energy challenges at COP29 in Baku
At COP29, global leaders and industry experts explore how AI, finance and innovation can drive renewables expansion to meet the 2030 goal of tripling capacity.
This time last year, at COP28 in Dubai, world leaders agreed on an ambitious target to triple global renewable energy capacity by 2030. To keep the momentum going, the REA (the Association for Renewable Energy and Clean Technology) joined leading industry and decisionmakers in a pivotal event at COP29 in Baku, entitled ‘New Solutions to Achieve the 2030 Goal of Tripling Global Renewable Energy Capacity: The Role of Finance, Technology, Innovation and AI.’
Renewables solutions panel discussion
With experts from KPMG, SSE, AON Insurance and the UN Development Programme, among others, the event offered insightful discussions on how finance, innovation and AI can tackle the substantial challenges to the 2030 target. The panel examined potential solutions, including using AI to accelerate renewable developments, innovative financial models and the critical role of grid investments. REA’s CEO, Trevor Hutchings, represented the UK’s renewable energy industry and shared an industry perspective on overcoming these challenges. With a commitment to driving clean energy transitions, Hutchings outlined how industry-led initiatives and policy support can help pave the way for renewable
expansion. He touched on the essential collaboration between governments, businesses and communities to enable this transition.
Leading UK renewables advocacy
Industry-led initiatives and policy support can help pave the way for renewable expansion.
The REA is the UK’s largest trade association for renewable energy and the only one hosting a pavilion in the Blue Zone at COP29. From solar and wind to bioenergy and EV infrastructure, the association advocates for an integrated, future-ready energy system. By fostering innovation, supporting critical policy advancements and promoting sustainable business practices, it is helping to shape a low-carbon economy.
Driving climate change solutions
Through its influence in the UK Parliament and collaborations with global leaders, the REA is driving forward practical solutions to climate change, ensuring that renewables are central to the conversation on sustainable growth. As the world watches COP29, the association remains committed to being a voice for the UK’s renewable sector, demonstrating that with the right support, the 2030 target is not just achievable – it’s essential.
Powering Africa’s future with climate-smart innovation
As global leaders gather at COP29 in Baku, a priority for Africa is clear: accelerating access to reliable and sustainable electricity.
Wendy Hughes World Bank, Regional Director for Infrastructure in Eastern and Southern Africa
Franz Drees-Gross World Bank, Regional Director for Infrastructure in Western and Central Africa
Today, nearly one in two people in Africa lack access to electricity. Without affordable and sustainable power, Africa will not reach its development aspirations or the economic transformation needed for a world free of poverty on a liveable planet.
An ambitious partnership to electrify Africa
To address this urgent need, the World Bank Group and the African Development Bank have launched ‘Mission 300,’ aiming to connect 300 million Africans to electricity by 2030. About half of this goal will be achieved cost-effectively through grid connections. The other half will be delivered via private sector-led distributed renewable energy (DRE) like minigrids and solar home systems. DRE has proven affordable and effective in expanding energy access and greening the sector in
Africa, with examples like Kenya doubling electricity access through private investments in distributed renewables. In Cote d’Ivoire, electricity access more than doubled from 34% in 2013 to over 70% in 2022,1 driven by large-scale grid investments and innovations such as a social bond for electricity connections.
Accelerating sustainable energy access
Together with partners, the World Bank Group is accelerating progress with Mission 300. For instance, a regional programme in Eastern and Southern Africa is advancing sustainable and clean energy access for 100 million people across 20 countries — starting with Burundi, Rwanda, Sao Tome and Principe, Somalia and Tanzania.
In remote and rural areas, mini-grids and standalone solar solutions will play a critical role. Nigeria is stepping up its ambition
to provide access to clean and efficient electricity to 17.5 million people using DRE solutions while replacing over 250,000 polluting and expensive diesel generators.
Success hinges on private-sector innovation
Private sector collaboration is essential to rapidly deploy DRE solutions, reaching underserved communities with cost-effective and clean energy. To attract private investments, the International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) and the World Bank are piloting a new equity vehicle with integrated de-risking guarantees.
Reforms to strengthen Africa’s power sector
As part of Mission 300, governments are taking on critical reforms to expand affordable energy, promote regional integration, scale up DRE, leverage private investment and strengthen power utilities. The success of Mission 300 hinges on advancing reforms, mobilising private sector investment, fostering partnerships and blending innovation with scalable solutions. Join us on the mission to power up Africa.
Reference 1. IEA, IRENA, UNSD, World Bank, WHO. 2023. Tracking SDG 7: The Energy Progress Report.
Katie Martin, Director, Sustainability & Innovation, Avetta
BY
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Tony Greenway
CSustainable supply chain practices that drive environmental and social impact
To build sustainable supply chains, companies need tech that creates visibility through tiers of complexity, enabling them to see exactly who they are doing business with.
reating a sustainable supply chain — one that uses sustainable practices to support people and the planet, as well as drive profit — is easier said than done. While you can change to ensure that your own business is operating in a way that is safe, environmentally beneficial and fully compliant with human rights laws, how can you be certain that your suppliers are doing the same? What about the suppliers of your suppliers?
Transparency and complex supply chain risks
The problem is that today’s supply chains are increasingly long and complex. The longer and more complex they become, the greater the risk that a business with non-sustainable practices can enter your supply chain, bringing unforeseen risk along with it.
“Having a level of transparency with your tier 1 suppliers is challenging enough, let alone your tier 2 and tier 3 suppliers,” agrees Katie Martin, Director, Sustainability and Innovation at supply chain risk management company, Avetta. “When those tiers start subcontracting out work, risks of — for example — forced labour, child labour, and environmental and chemical challenges increase.”
Benefits of real-time supply chain visibility
Technology that offers real-time supply chain visibility is vital because it gives a business oversight of — and control over — the safety and compliance of contractors, suppliers, subcontractors and other workers. With more informed, data-driven decisionmaking, risk can be engineered out, and sustainable practices and responsible procurement can be built in. That’s good for cost savings, society and the environment.
For instance, Avetta’s software-as-a-service platform is used by more than 130,000 companies globally to manage their supply chain compliance and ensure they are working with safe, environmentally sound, and secure business connections. “Businesses need technology that creates a laser pointer through the complexity of supply chains so that they can understand exactly who they are doing business with,” says Martin.
Reputational risks throughout supply chains
Naturally, not all businesses have the same levels of risk in their supply chains. The risk profile of a professional services company is going to be significantly different to that of a minerals and mining firm. Yet, without proper transparency, things can easily go awry for any business; and significant brand damage can be the consequence.
“Consumers are not going to make a distinction between your company and one of your tier 3 suppliers (that may be involved with child labour),” says Martin. “They’re going to say that your business works with a company that employs child labour. So, you need a platform that is a reputational risk management tool, too.”
Sustainability is a financial and ethical profit
Businesses improving supply chain sustainability don’t just benefit society and the environment. They’re also boosting their bottom lines. “Removing social and environmental risks from the supply chain is a cost-saver,” shares Martin. “Best practices around environmental and social performance can lead to efficiencies such as better fleet management, lighter packaging, less waste, repurposing of waste and, of course, avoiding labour and supply chain disruptions.”
Indeed, Martin notes that there’s a long-tail view, particularly among Fortune 1000 businesses, that operating sustainably can drive profitability and increase valuation. “But we’re also starting to see safety and sustainability regulations catch up with businesses,” she says. “So, it’s a must-have, rather than a nice-to-have.” However, supply chain sustainability can’t be rushed. It can take a year or two of change, to get trusted suppliers onboarded and all the relevant data in place. “Companies shouldn’t wait for regulations to be breathing down their necks,” she says. “They need to act now — even if it’s just getting an initial understanding of their risk profile — so they can hit the ground running.”
Three ways insurers are investing in ecosystem restoration to combat climate change
Innovative urban design solutions to tackle extreme, rising heat
Discover the three ways insurers can support ecosystem protection and restoration in developing countries, both in their role as insurance providers and as investors.
Following COP29, the focus on financing climate action in developing countries highlights an opportunity for insurers to play a vital role in ecosystem restoration. Many are adopting insurance for nature-positive solutions to manage environmental risks while actively protecting and restoring ecosystems.
Supporting coral reef conservation through parametric insurance Coral reefs serve as natural barriers against storms. They offer vital services, such as flood control and water filtration. Principles for Sustainable Insurance (PSI) signatory, Willis Towers Watson, has launched insurance products that support reef conservation in Belize by paying for losses associated with hurricane damage.
microinsurance schemes, green bonds and climate funds. These attract investments from the public, private and philanthropic sectors. This covers areas with low purchasing power but high insurance needs, especially for small-scale farmers and businesses.
Temperatures around the world have been increasing in recent years, with 2023 being one of the hottest years ever recorded.*
The OECD’s 2024 ‘Regions and Cities at a Glance’ report finds that in OECD large regions, air temperatures rose by an average of 1.4°C in 2023 compared to 1981–2010. This average masks even sharper increases in polar and cold regions, where temperatures rose nearly 2°C. This trend is set to continue, as temperatures by 2050 are expected to increase by at least 3°C in cold regions and by at least 1.3°C in arid and tropical regions.
Urban heat intensifies disparities
Insurers can play a crucial role, not only in protecting ecosystems but also in enhancing the resilience of developing communities and economies
against climate change risks.
A particular product, parametric insurance, ensures immediate recovery of funds and long-term resilience. It integrates innovative financial mechanisms to support climate adaptation and disaster response. For instance, the parametric insurance solution in Quintana Roo, Mexico protected the Mesoamerican Barrier Reef and paid out for the first time in 2022. This involved coastal tourism businesses, property owners and local municipalities, safeguarding 160 kilometres of coral reefs from storm damage.
Promoting sustainable food systems Insurers can support sustainable food systems and ecosystem restoration in developing countries. They do so by using financial mechanisms such as
Investing in mangrove restoration Mangrove forests are vital for coastal protection, carbon storage and biodiversity. Insurers can invest in projects such as those by the Restoration Insurance Service Company (RISCO) in the Philippines. These projects restore mangrove ecosystems, protecting coastlines from storm surges and reducing insurance risks related to coastal erosion. By focusing on mangrove restoration, insurers align with COP29’s emphasis on nature and biodiversity, creating natural defences against climate impacts.
By integrating these forwardlooking strategies, insurers can play a crucial role, not only in protecting ecosystems but also in enhancing the resilience of developing communities and economies against climate change risks.
Cities are particularly affected by rising temperatures due to the urban heat island effect. Cities’ high building density, intensive levels of human and industrial activity, artificial surfaces and limited vegetation result in higher temperatures compared to more rural areas. In the past five years, almost half of OECD cities witnessed a summer daytime heat island effect of over 3°C. Heightened heat levels will harm health, especially for older people. It will also disproportionately affect low-income communities, which tend to have fewer green areas and higher building density and typically have fewer means to access cool spaces.
Cool hacks for hot cities
Cities’ commitment to strengthening their climate resilience has become ever more critical. Yet, local governments and city planners can act on different levels to devise locally achievable solutions to mitigate and adapt to heat island effects. Electrification and improvement of public transport can help reduce the need for private transport, as well as the heat and pollutants emitted from fuel-powered vehicles in dense urban areas. Urban spaces must also be redesigned to reduce heat exposure, especially in low-income areas.
Chilling the urban heat
Creating parks, promoting green roofs, using cooling materials, planting tree-lined streets and enacting zoning for ventilated, shaded spaces all help lower land surface temperatures. These policies must be guided by local knowledge to be effective, as each municipality experiences heat differently. Each city has a unique combination of needs and opportunities to address urban overheating.
Local governments should collaborate and learn from each other on how best to make their cities more resilient to high temperatures. Through innovative and collaborative policies, cities can thrive in a hotter future.
Source *OECD, Regions and Cities at a Glance, 2024.
Why bringing ‘lives and livelihoods’ together is key to better nutrition
Bringing better nutrition to people in low-income communities involves a mix of science-driven research and local engagement to ensure that solutions will work on the ground.
The world must wake up to the scourge of malnutrition, says Dr Sufia Askari. It disproportionately affects poor communities and can negatively impact a person’s growth, IQ (intelligence quotient) and earning potential. Tragically, it causes almost half of all child deaths globally.
Nutrition innovation saves lives
WRITTEN BY Tony Greenway
“Nutrition is a basic human right,” says Dr Askari, Managing Director of Sight and Life, a Swiss-based charitable foundation and research institute known for innovative solutions in the climate, food systems and nutrition space. “So, we’re bringing innovation to do things differently, save lives and make sure that children can reach their full potential. In turn, this will help improve productivity in affected countries.”
Sight and Life develops and pilots science-backed nutrition solutions,
scaled through partnerships, that can benefit the most people. “Our organisation thinks of innovation in two ways,” says Dr Askari. “The first is the ‘what’ and the second is the ‘how.’ What solution do we need; also, importantly, how can we ensure it reaches a high level of coverage in vulnerable communities?”
On-the-ground knowledge bringing benefits in Rwanda
For instance, in Rwanda, a hillside water source facility was pivotal in addressing local vegetable farmers’ challenges, including inadequate facility size and limited water access for washing produce. Through the Nutrition in City Ecosystems project, the facility was renovated and connected to a reliable water supply. Elvis Gakuba, Rwanda Country Director, says this enabled 400 smallholder farmers to wash vegetables daily; expanded reach to over 1 million people in
Rwanda; and enhanced agricultural productivity while residents gained free water access for household and farming needs.
Innovation and sustainable work both require sustained funding. Moreover, what works in one area, region or country will not necessarily work in another. This is why involving local people — such as government officials, entrepreneurs, local community leaders, farmers and consumers — is a crucial part of the Sight and Life process. Locals don’t have a monopoly on good ideas, says Gakuba. Outside support and advice are also welcome. “There’s real value in bringing the two together,” he says. “Ultimately, it’s about helping people help themselves because it saves lives and livelihoods.”
Better ESG efficiency equals big cost savings for your business
Businesses should view ESG strategies and reporting as a benefit rather than a burden, says Dr Michelle de Jongh, Managing Director of ESG consulting services, Inspired PLC.
WRITTEN BY Tony Greenway
In your experience, how do businesses view ESG reporting?
We’re past the peak of ESG (environmental, social and governance) reporting hype. Companies required to do it accept that it’s part of the business landscape now. We show our clients the positives of ESG reporting by making it practical and useful, highlighting the operational improvements it brings. It’s about seeing it as a benefit, rather than a burden. If a company uses its resources in the most efficient way, the byproduct is always a positive for the business — and the environment. There’s ‘no one size fits all’ way to do this because each business and each sector is different.
Are there ‘best practice’ strategies you’d recommend?
products enter its supply chain — and what does that mean for the business?
What challenges do businesses face in reporting and implementation?
Implementing an ESG strategy and reporting on it can involve a significant human capital cost, which can be a real challenge for SMEs, particularly ones that just meet reporting thresholds. Suddenly, they need people who understand climate change, pollution, biodiversity, the circular economy, complexities of supply chains, standards of international law, governance, etc.
It’s about seeing it as a benefit, rather than a burden.
Start with the basics. If a business makes its building more energy efficient, it cuts costs, and the money it saves can be reinvested. Solutions that drive energy efficiencies include everything from building management systems and sensors to LED lighting and on-site energy generation. Manufacturers can also look at the efficiency of their machinery and whether they could transition to lower emissions alternatives. Then, it’s about finding efficiencies in the supply chain. How does a company engage with its suppliers, what
What should companies do to fund solutions and build out in-house expertise?
They should understand their spending priorities over the next five years — then, crucially, ring-fence their budget accordingly. The key driver for doing this is the UK’s 2030 carbon emissions target. As we near it, more businesses are going to be under pressure to decarbonise operations with solutions that will only become more expensive. Ring-fencing budgets will serve a business far better in the long term.
Lawyers urge tighter rules to implement climate pledges
Establishing clearer legal frameworks will enable governments and policymakers to translate climate change pledges into legally binding rules.
Gizem Koç Lawyer at ClientEarth
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ClientEarth, a leading environmental organisation using law to drive systemic change, aims to close the gap between climate ambition and action. It aims to strengthen climate action at COP29 by advocating for robust Nationally Determined Contributions (NDCs) to be translated into Framework Climate Laws (FCLs), guided by the latest science.
progressive than the previous one in terms of its ambition to reduce emissions,” she explains.
An FCL sets the overarching framework of a country’s climate change response. Typically, they cover things like emissions
domestic law, so they do not remain as wish lists and pledges from governments, but become clear, binding legal rules,” adds Koç.
Human rights and climate connection
The organisation is also keen to highlight that FCLs and human rights laws are interrelated. Recent court judgments set out that states must act in good time to address climate change. The climate policies of countries must also be consistent with state obligations that stem from domestic and international guarantees of human rights.
Urgent climate legislation required Gizem Koç, lawyer at ClientEarth, says that to keep the increase in global average temperature below 1.5C, countries must submit robust NDCs by February 2025. These plans set out national government intentions to reduce greenhouse gas emissions, and for taking action on adaptation to address the damaging impacts of climate change. “As the Paris Agreement requires, NDCs should be communicated every five years and each NDC must be more
Recent court judgments set out that states must act in good time to address climate change.
reduction targets and provide mechanisms to ensure judicial, administrative and political accountability. They are expected to ensure the implementation of NDCs, which are not usually legally binding.
“We want the next generation of FCLs to translate NDCs into
Koç cites recent legal action against Switzerland brought by four individuals and an association of 2,000 women claiming climate change was having a detrimental impact on their health and quality of life. The European Court of Human Rights observed that Swiss authorities had failed to introduce and implement an adequate legislative framework to tackle climate change.
She concludes: “A new generation of FCLs presents a chance for different segments of civil society to come together, share knowledge and help formulate laws to guide climate policies. They are also an important opportunity for people to further their demands for climate justice.”
Rethinking science: a mission-driven approach to tackle global sustainability challenges
Science has long been a beacon of progress, advancing knowledge and improving lives. Yet, as the world faces unprecedented environmental and social crises, it has become evident that science, as currently practised, is not fully meeting its potential to address the world’s sustainability challenges.
Climate change, biodiversity loss and growing inequality are intertwined issues that demand a bolder, mission-driven approach. To tackle these issues effectively, we must shift to a model of ‘big science’ that mobilises international cooperation, aligns around shared goals and prioritises impactful, actionable research.
Mission-driven scientific collaboration
The UN’s Sustainable Development Goals (SDGs) set out an ambitious vision for global progress, yet the world lags on nearly every front. Traditional scientific approaches, though valuable, remain fragmented and siloed, failing to address complex, interconnected challenges. What we need is a paradigm shift: science driven by a mission approach that matches the global, intertwined, multifaceted nature of the crises we face. Examples like CERN and the Square Kilometre Array Observatory (SKAO) have demonstrated how science can achieve breakthroughs through collaboration, substantial investment and a shared vision.
Transformative science model
Recognising the need to transform how we conduct and share science for sustainability, the International Science Council (ISC) has proposed a bold new roadmap at the 2023 High-Level Political Forum (HLPF), ‘Flipping the Science Model: A Roadmap to Science Missions for Sustainability.’ It calls for a transformative shift toward well-funded, strategically aligned scientific missions that unite scientists, policy experts and communities.
The transition to ‘big science’ requires several critical shifts:
1. From isolated grants to collaborative missions: The model of funding isolated research grants must shift toward supporting large-scale, collaborative missions. Pooling resources from various funders (governments, international organisations and private sectors) will allow for comprehensive, global efforts that target sustainability challenges holistically.
2. From silos to transdisciplinary collaboration: Today’s challenges demand expertise beyond natural science alone; they require the integration of social sciences, policy and community knowledge to drive meaningful, lasting change.
3. From publication-focused to actionable science: While research publications advance knowledge, the global crises we face demand real-world impact. Science for sustainability must prioritise results that directly address sustainability issues.
Purposeful, collaborative science for sustainability
The ISC’s Science Missions for Sustainability initiative embodies these principles by launching collaborative pilot projects to test, and this is mission-driven. These pilots represent a new approach to science, with success measured by contributions to global resilience and sustainability. The ISC’s science missions are committed to purposeful action for a sustainable, equitable future — at a time when the stakes are higher than ever.