With the ambition of the Paris Agreement set at keeping temperatures rises ‘well below 2oC’ but country commitments that lead us on a path to 3- 4 oC, bolder climate action is needed from non-state actors, with a growing focus on the business sector. At the same time, the new rules taking shape for the Paris Agreement mean that corporate climate action must evolve for a new era.
Gold Standard, CDP and WWF have co-developed draft guidelines for best practice climate action in the Paris Agreement era. These propose how companies can navigate the prevalent climate initiatives to elevate their climate strategies from carbon management to climate stewardship within the context of the Paris Agreement, with the fundamental steps being to:
1. MEASURE + DISCLOSE climate impact and risks
2. REDUCE climate impact in line with science
3. FINANCE the global transition to a zero-carbon resilient economy
4. ADVOCATE for strong policy frameworks
With the overarching message to ‘reduce within; finance beyond’, the guidelines encourage corporates to mitigate their own greenhouse gas emissions in line with science, while also in supporting developing countries’ transition to low-carbon development.
Scope of Consultation & Specific feedback sought
Gold Standard seeks feedback on the following, paired-documents:
1. Corporate Climate Leadership – Guidelines for Best Practice Climate Action in the Paris Agreement Era
2. Defining a Corporate Climate Finance Commitment – A Pillar of Corporate Climate Leadership
We invite feedback from all stakeholders, but are particularly keen to hear from sustainability professionals who would be responsible for implementing these guidelines in practice.
CONSULTATION QUESTIONS
General questions:
- Are the targets defined realistic and achievable for corporates wanting to take ambitious action to demonstrate climate leadership?
- Can you see any potential challenges or barriers to uptake or implementation of either set of guidelines? If so, what are these, and how can these be overcome?
- Is any further information or support required to help facilitate implementation of these guidelines?
Questions specific to ‘Guidelines for Best Practice Climate Action in the Paris Agreement Era’:
- Do the four pillars proposed indeed represent the most important dimensions of corporate climate leadership? If not, what’s missing?
- Is it helpful to have a snapshot of “Step 1”, “Step 2” per source of emissions in order to inform your climate strategy?
- What feedback do you have on the specifics of Steps 1 + 2 per source of emissions?
Questions specific to ‘Defining a Corporate Climate Finance Commitment’ guidelines:
-Is it reasonable to ask a company to take financial accountability, i.e., internalise the costs, for its entire footprint?
- Does the concept of sharing responsibility with suppliers, vendors, customers, etc., make sense? If not, why not?
- What are your thoughts on using two possible pathways? Is this an advantage? A limitation? Too open?
- What other mechanisms should be highlighted? Why?
- Is the business case compelling? If not, why not? What further incentives would be needed?