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The biggest polluters have the most to offer on climate change

Helen Clarkson

“We need urgent action every day because you cannot wait until 2030 or 2040 to make a plan for 2050.”

Helen Clarkson,
CEO, Climate Group

Helen Clarkson is on a mission to get companies, sectors and governments to take action on climate change now. While an increasing number of corporations are setting goals for achieving net-zero emissions by 2050, the head of the Climate Group argues that reaching those targets will only come about by actions taken today.

“This is the climate decade,” she says. “We need urgent action every day because you cannot wait until 2030 or 2040 to make a plan for 2050.”

Through her work at the Climate Group, which focuses on sectors such as transport, energy, the built environment and industry, Clarkson believes that the biggest and fastest reductions in global carbon emissions will come from areas that have traditionally proved the biggest polluters.

EV100, a Climate-Group coalition of companies committed to electrifying their vehicle fleets, has already signed up about 90 firms that run a total of more than 400,000 cars and vans. Reaching this critical mass, argues Clarkson, has helped to push governments to adopt more ambitious plans to phase out fossil-fuel vehicles.

“We will soon see big businesses all over the world using only renewables for their energy needs.”

Helen Clarkson,
CEO, Climate Group

A second front, one of many her organisation is working on, is RE100, a campaign that encourages companies worldwide to accelerate their transition to renewable energy. Businesses in the commercial and industrial sectors account for about half of the world’s electricity consumption, which makes them invaluable as agents of change.

So far, more than 330 companies with a combined revenue of $5.6tn – and with a greater combined electricity demand than that of the UK – have joined the campaign. Moreover, the average end-date for their transition to 100 per cent renewable energy is 2028.

“We will soon see big businesses all over the world using only renewables for their energy needs,” says Clarkson. “By acting on things that they can do right now, they are starting to really move the dial in the bigger shift to net zero.”

“Adoption of renewables and other carbon reduction measures is often cheaper, so there is no reason not to do it.”

Helen Clarkson,
CEO, Climate Group

Shareholders and other investors are playing an important role in pushing businesses to do more – and more quickly. But Clarkson, who spent years working on humanitarian missions in countries such as Nigeria, Sudan and Pakistan, says that companies today also have clear financial incentives to accelerate their carbon reduction strategies.

“Adoption of renewables and other carbon reduction measures is often cheaper than the alternatives, so there is no reason not to do it,” she says. “Even if you took the climate dimension out of it, it just makes business sense.”

Done right, and done quickly, Clarkson believes that the transition to a net-zero economy will produce a world that looks much like the one we have today. Sustainable economies will still have streets that you can walk down, cars that you drive and industries that provide many of the same goods and services.

But this all requires action today, not ill-defined plans for tomorrow, she says. “There isn’t a moment to lose.”

 

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Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.

 

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