Combating climate change needs business and government collaboration. Our CEO Hein Schumacher and former UNFCCC Executive Secretary Patricia Espinosa, explain how working together will help unlock faster emission cuts.

Next week in New York, leaders from around the world will gather to attend the United Nations General Assembly. Each leader will need to address critical issues facing their nation, climate change being a shared challenge they all must face up to.

We recognise the profound responsibility we bear in addressing the escalating climate crisis in our respective fields. We also recognise that individual action is essential but insufficient, which is why we are issuing a call to action for both business and government.

Governments must create strong 1.5°C-aligned Nationally Determined Contributions (NDCs) that strive for the highest level of ambition and provide a policy framework that supports business decarbonisation opportunities by providing adequate support for private investment.

NDCs should include:

Ambitious goals in GHG emissions reduction and commitments
Commitments to conserve and restore forests
Targets, measures and reward schemes to support the transition to and maintenance of regenerative agriculture practices
Strategies to accelerate the transition to the use of renewable and recycled feedstocks for chemicals
CEOs should, at the same time, back these efforts with verifiable 1.5°C-aligned climate transition and investment plans.

The economic case for climate action
Since Nicholas Stern’s landmark review of the economics of climate change, it has been clear that the costs of not acting to tackle climate change are much higher than the costs of taking action.[a]

This is because, as climate change intensifies, it will disrupt every aspect of every industry, impacting business performance, employment, quality of life and the overall socio-economic stability of nations.

Another path is possible. The Paris Agreement could unlock $23 trillion worth of global investment opportunity in emerging markets.[b] And, if we deliver on limiting global warming to 1.5°C, the global economic costs of climate change will reduce by around two-thirds.[c]

Public and private sector investment in climate action is needed
Unilever understands the opportunity and the imperative, investing €150 million in decarbonisation of manufacturing over the next three years, as well as €1 billion in climate, nature and circular economy projects by 2030.

But no one business on its own can drive change at the scale needed. Combating climate breakdown demands a united front across business and government.

Calling for government and business action
That’s why, ahead of UN General Assembly week, we’re joining forces to emphasise the critical need for heightened national climate ambition – and action – to keep the world to a 1.5°C-aligned pathway, and the importance for business leaders to actively support these efforts.

Government leaders must take bold decisions, knowing that their actions over the next few months will shape the next few years for better or for worse. The first step is for ambitious NDCs to be agreed. The second step is for governments to implement them and create supportive legal, policy and regulatory frameworks that will catalyse business to decarbonise their operations.

Business can support government ambition by sending demand signals that they want more ambitious national targets and that they intend to play their part in delivering them – from setting science-based targets across value chains to investing in decarbonising efforts and to using their influence for good.

Which is why we call on every business that values the future of our planet, as well as their own commercial success, to seize the opportunity in the coming months to advocate for stronger and more ambitious NDCs and align their plans with them.

The time for half-measures is over
In this divided and fractured world, inertia, complacency and cognitive dissonance are leading us towards avoidable catastrophes. Yet we know that, with the right combination of ambition and implementation, a more prosperous future is within reach.

Policymakers and businesses must recognise the jeopardy we face and calibrate every decision they take with this in mind. The world is watching, and the decisions made this year will shape the trajectory of our planet for present and future generations.

For more information, read Unilever’s briefing (PDF 201.02 KB) with input from the team at Onepoint5, which sets out what effective NDCs look like and how businesses can support them.

[a]
Read Nicholas Stern’s review of the economics of climate change (PDF 1MB)

[b]
Climate Investment Opportunities in Emerging Markets (PDF 7.60 MB)

[c]
Climate damage projections beyond annual temperature | Nature Climate Change