New York Climate Week Focuses On Action
New York Climate Week Focuses On Action
New York Climate Week, which brought together climate leaders from across sectors and around the world, took place at the end of September. Across New York City, over 600 events addressed energy, environmental justice, finance, nature, transport and more. It was a whirlwind week, as we all rushed around the city, trying to squeeze in as many panel discussions, receptions and meetings as possible. In addition to the importance of good walking shoes while navigating Climate Week, common points of conversation ranged from the business case for sustainability to strategies for risk management. Specifically, speakers emphasized that:
- Sustainability is good for the bottom line.
In the words of one panellist, “Sustainability fuels performance”. A former CEO shared that he faced pushback when his sustainability narrative centred on ‘doing the right thing’. When he, instead, focused exclusively on the business case – highlighting how sustainability could help his firm grow and cut costs – he was able to make real progress. Several speakers also made the case that businesses benefit from sustainability initiatives despite ESG backlash. Politics are just one consideration, and global trends are at least as important as what happens in individual countries.
- Policy will drive action.
In many cases, policies enhance the business case for climate action. There was overall agreement that CFOs have been getting more involved in sustainability. For many finance departments, the need for auditable data – required by regulations such as the Corporate Sustainability Reporting Directive (CSRD) – and growing compliance risks have been key motivators. However, mandatory reporting is not the only type of regulation that firms worry about. One speaker presented data showing that the most effective policies are those that force or provide financial incentives for emission reductions. Policies can present real risks for businesses and help align the private sector with climate science.
- Organizations need to understand climate risks on business-relevant timescales.
There was consensus that climate risks are becoming more significant, and now demand attention. However, when discussing climate risk management, multiple speakers raised the issue that climate scenarios often consider longer timescales than most business decisions. One panellist said that she has observed a push within financial institutions to create short-term climate scenarios. At another event, a speaker raised the issue that firms need to understand current risks before thinking about the future, and that building resilience to present uncertainty will increase resilience to climate change.
Overall, the mood at Climate Week was hopeful with a strong focus on action. At every event I attended and in conversation I had, there was an emphasis on collaborating and sharing lessons learned to push the public and private sectors toward a more sustainable and resilient world.