COP26: Outcomes and Communications Implications for Global Business

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The UN Climate Conference (COP26) has ended after two weeks of multilateral discussions among 197 countries, resulting in a series of agreements and commitments by national governments, corporations, financial institutions, subnational governments and civil society organizations.

From the onset, COP26 was focused on two core objectives:

1. Accelerate the reduction of global carbon emissions across countries and industries towards meeting the 1.5 degrees Celsius target of the Paris Climate Agreement.
2. Significantly increase financial support for developing countries to mitigate today’s harmful climate impacts and transition to a clean energy future.

Neither goal was achieved. The two-week conference highlighted the differing goals and ambitions of countries on climate, with funding and the pace of developing world adaptation as two areas where countries could not align their commitments.

Without a global plan that brings the world in line with a 1.5 degrees Celsius target, however, there will be more urgency and pressure on corporate actions to determine whether national emission targets are realized.

The business world stepped up with new commitments at COP26, but the narrative on what corporate leadership on climate looks like is shifting. From a focus on net zero to scrutiny of concrete and transparent actions. From ambitions for the long-term to accountability for results in the short-term. From a view that the corporate world can lead alone to a focus on engagement with governments and other partners to find and scale solutions.

In the aftermath of COP26 and to help companies prepare for this new focus on corporate actions in 2022, here is some communications guidance to consider:

• Review and update climate (and broader ESG) strategies, actions and reporting. Ask tough questions about whether your approach and strategy still fit into today’s rapidly changing landscape — considering new expectations from regulators, investors, employees and customers. Explore opportunities for bolder or more ambitious sustainability actions.
• Set short-term targets on climate, ideally linked to sales. Ask your management teams and heads of business units: How are we going to be part of the climate solution in society and be a profitable business in the future? Align the company’s purpose, business strategy and management targets around this.
• Anticipate and get ahead of new regulations and engage governments in the sustainable change you want to drive. As countries strive to meet their national emissions targets, they will impose new legislation, mandates, regulations and trade policies. There are also new ESG reporting mandates expected. Monitor the policy landscape to prepare for changes that could impact business operations.
• Prioritize a sustainability culture and engage your employees and supply chain partners. Putting in place the right practices and reporting structures is important, but success also requires having a motivated workforce with the necessary resources to foster a sustainability culture across your entire workforce and supply chain. A strong sustainability culture can also attract and retain the best talent.
• Seize the opportunity to inspire hope and action. People, vision and commitment will make the difference. The challenges we face are extraordinary, but there are solutions. Company leaders can connect with their employees, customers, governments and partners to inspire hope and action.

In addition to the final agreement, negotiators also announced several commitments to address climate impacts and initiatives in different markets and industry sectors. Read about the 10 outcomes for their future impact on climate action at Weber Shandwick’s Issues Decoded here.