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PwC commits to net zero by 2030, globally

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PwC is making a worldwide science-based commitment to achieve net zero greenhouse gas (GHG) emissions by 2030. The commitment includes supporting our clients to reduce their emissions as well as reducing those from the PwC network’s operations and suppliers.

PwC commits to decarbonise its operations, including its travel footprint, and neutralise its remaining climate impact by investing in carbon removal projects. It will also engage its suppliers to tackle their climate impact.

The PwC network (“the network”) will work with its clients to support their efforts to make a net zero future a reality for all. In FY20 (July 2019-June 2020), PwC firms provided services to 84% of the Global Fortune 500 companies and more than 100,000 entrepreneurial and private businesses. It is this position that will allow PwC to play an integral role in driving the transition to a low-carbon economy worldwide.

To support these efforts, the network will continue to contribute to public policy developments in support of net zero at national, regional and global levels.

Bob Moritz, Global Chairman of the PwC network, said: “Businesses and economies must evolve quickly to address the significant challenges facing our societies and our planet. Whether you look at this through the lens of human need or from a capital allocation perspective, it is in the interests of everyone that we see systemic change that averts climate catastrophe and unlocks the potential of green growth.”

“A net zero world is within reach. Getting there will take innovation, hard work, collaboration and bold thinking but the benefits will be immense. The business community has a responsibility to act and we are determined to play our part, not just in our own operations and supply chain, but also in the way we advise and support our clients to create a sustainable world for future generations.” 

Raising our ambition further, faster

The network’s net zero goal includes a science based target aligned with a 1.5°C trajectory. PwC commits to reducing its total greenhouse gas emissions by 50% in absolute terms by 2030. This includes a switch to 100% renewable electricity in all territories, as well as energy efficiency improvements in our offices and halving the emissions associated with business travel and accommodation within a decade. Emissions associated with flights alone currently represent around 85% of the network’s total carbon footprint. The COVID-19 pandemic has accelerated the shift to remote working and demonstrated the feasibility of new client service models, as part of a longer-term transformation of PwC’s services.

PwC will also invest in carbon removal projects, including natural climate solutions. For every remaining tonne (CO2 equivalent) that it emits, PwC will remove a tonne of carbon dioxide from the atmosphere to achieve net zero climate impact by 2030. Our projects will be selected on the basis of quality criteria and verification of carbon reduction impact, and will also support broader local economic and social development co-benefits. 

Working with our clients to accelerate net zero transformation

To address the climate challenge, a radical transformation is needed in every sector of the global economy and all parts of the world.  

With global reach across 157 countries, industry coverage, and its 284,000 people that support clients at every stage – from reshaping strategy and transformation, to deals, reporting, audit, and tax – the PwC network has a huge opportunity to accelerate the transition to a net zero future in collaboration with its clients.   

The network supports organisations as they develop and implement concrete plans for how to get to net zero. This includes re-alignment of corporate strategy, people and talent, governance and accountability, operating model, innovation and research and development (R&D), tax strategy and reporting, and enterprise and supply chain transformation. Other areas include partnerships and alliances, and corporate affairs and regulatory engagement.

Building on existing client work in sustainability and net zero transformation, PwC will infuse science-led climate analysis into its areas of service. For example, its Advisory practice is integrating climate risks into relevant engagements, providing clients with insights about climate risks and opportunities as well as helping them to transform their business processes. Another major focus area will be integrating climate-related and other ESG-related factors into mainstream corporate disclosures and governance, where PwC’s Assurance practice will support the development of high-quality, aligned disclosure and measurement standards and help clients embed these into their reporting and governance. Across its Tax practice, PwC will be helping clients understand how net zero transformation will impact tax strategy, transparency and compliance obligations, subsidy and incentive opportunities, and revenue impacts for both public and private sector organisations. 

To further scale its capabilities to support clients in these areas, PwC has appointed Peter Gassmann to lead its new global Environmental, Social and Governance practice. In addition, Nadja Picard has been appointed as PwC’s new Global Reporting Leader to drive the network’s support for clients to incorporate non-financial disclosures in their corporate reporting. 

Helping shape and accelerate the global climate and policy agenda

PwC supports reform that puts the needs of stakeholders at the heart of the market economy and connects goals, actions and outcomes into desired social and economic results that fuel long-term sustainability. Supporting the net zero transition is a key part of this process.

As stakeholder expectations rise, organisations increasingly need to report on their environmental and social impacts and demonstrate progress. As a result, there is a greater need for consistent, comparable ESG standards so investors and other stakeholders can clearly see how businesses are creating long-term value for the organisation and society. PwC is supportive of global efforts to develop transparent and robust ESG reporting frameworks and standards, including through work with the World Economic Forum International Business Council, the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), the International Integrated Reporting Council (IIRC), the Global Reporting Initiative (GRI), and the Sustainability Accounting Standards Board (SASB), amongst others.

PwC will also contribute to broader understanding of how to achieve net zero. PwC will shortly be launching a practical guide, “Building Blocks for Net Zero Business Transformation” aimed at business executives to help companies of all sectors and sizes move from net zero pledges to wholescale business transformation. The research has been produced in association with Microsoft, who PwC advises on net zero transformation, as a contribution to the recently launched CEO-led Transform to Zero initiative. 

Further details of the network’s plans to achieve the 2030 net zero ambition, support clients and suppliers and advance the global climate debate will be shared over the coming months.

Bob Moritz added: “An important lesson of COVID-19 is that people can find ways to do the impossible when they have to, and we are taking some of that spirit into our efforts to tackle the global climate crisis. The changes we need to make will not be easy, but are nothing compared to the harm that runaway climate change would inflict on society. We are excited about working together, with clients, with partners and all of our stakeholders, to achieve our goals and play our part to support global efforts to help address the impacts of climate change for a more sustainable and fairer world.”

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2020, one of three warmest years on record

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The COVID-19 pandemic was not the only long-term crisis the world will remember from 2020. In terms of climate change, the year was also one of the three warmest on record, and rivalled 2016 for the top spot, the UN weather agency said on Wednesday. 

“The confirmation by the World Meteorological Organization (WMO) that 2020 was one of the warmest years on record is yet another stark reminder of the relentless pace of climate change, which is destroying lives and livelihoods across our planet”, said Secretary-General António Guterres

He pointed out that at 1.2 degrees of warming above pre-industrial levels, the world is already witnessing unprecedented weather extremes in every region and on every continent.  

“We are headed for a catastrophic temperature rise of 3 to 5 degrees Celsius this century”, he warned. “Making peace with nature is the defining task of the 21st century. It must be the top priority for everyone, everywhere.”  

Powerful force 

La Niña, which began in late last year, is expected to continue into the early-middle part of 2021.   

“The exceptional heat of 2020 is despite a La Niña event, which has a temporary cooling effect”, said WMO Secretary-General Prof. Petteri Taalas.  

La Niña and El Niño effects on average global temperatures are typically strongest in the second year of the event. 

“It is remarkable that temperatures in 2020 were virtually on a par with 2016, when we saw one of the strongest El Niño warming events on record”, he added. “This is a clear indication that the global signal from human-induced climate change is now as powerful as the force of nature”.  

The extent to which the continued cooling effects of La Niña this year may temporarily diminish the overall long-term warming trend remains to be seen.  

Following atypical patterns  

WMO pointed to sustained heat and wildfires in Siberia, diminishing Arctic sea ice and record-breaking hurricanes in the Atlantic as being among the climate events that most stood out in 2020.  

The UN weather agency also reminded that temperature is just one climate change indicator. Greenhouse gas concentrations, ocean heat content, global mean sea level, sea ice extent and extreme events are also factors. 

Backed by science 

WMO’s consolidated global temperature update incorporates information from five leading international sets of data.  

It also uses datasets that combine millions of meteorological and marine observations, including from satellites, with models to produce a complete reanalysis of the atmosphere.  

“The combination of observations with models makes it possible to estimate temperatures at any time and in any place across the globe, even in data-sparse areas such as the polar regions”, according to WMO.  

Looking to the future  

The Paris Agreement aims to limit global warming to well below 2°C, preferably to 1.5°C degrees, compared to pre-industrial levels. 

However, the global average temperature in 2020 had already approached the lower limit of the temperature increase that the Agreement seeks to avert.  

Moreover, there is at least a one-in-five chance that the average global temperature will temporarily exceed 1.5 °C by 2024, according to WMO’s Global Annual to Decadal Climate Update, led by the United Kingdom’s Met Office. 

The 2021 Met Office annual global temperature forecast also suggests that next year will again be one of the earth’s hottest years.  

Updating its provisional December report, WMO will issue its final publication in March, which will incorporate temperature figures, information on all leading climate indicators and selected climate impacts. 

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Step up action and adapt to ‘new climate reality’-Report

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Though countries have made progress in planning for climate change adaptation, there are significant financing shortfalls in getting them to the stage where they provide real protection against droughts, floods and rising sea levels, a new UN environment report has found. 

According to the 2020 Adaptation Gap Report, released on Thursday by the UN Environment Programme (UNEP), as temperatures rise and climate change impacts intensify, nations must urgently step up action to adapt to the new climate reality or face serious costs, damages and losses. 

“The hard truth is that climate change is upon us,” Inger Andersen, UNEP Executive Director, said in a news release announcing the findings. 

“Its impacts will intensify and hit vulnerable countries and communities the hardest, even if we meet the Paris Agreement goals of holding global warming this century to well below 2 degrees Celsius and pursuing 1.5 degree Celsius.” 

Global commitment needed 

Annual adaptation costs in developing countries are estimated at $70 billion, but the figure could reach up to $300 billion in 2030, and $500 billion in 2050. Almost three-quarters of nations have some adaptation plans in place, but financing and implementation fall “far short” of what is needed, according to the UNEP report. 

Stepping up public and private finance for adaptation is, therefore, urgently needed. 

“As the Secretary-General has said, we need a global commitment to put half of all global climate finance towards adaptation in the next year … this will allow a huge step up in adaptation, in everything from early warning systems to resilient water resources to nature-based solutions,” Ms. Andersen added. 

Adaptation is a key pillar of the Paris Agreement on Climate Change. It aims to reduce countries’ and communities’ vulnerability to climate change by increasing their ability to absorb impacts.  

Nature-based solutions 

The UNEP report also underscored the importance of nature-based solutions as low-cost options that reduce climate risks, restore and protect biodiversity, and bring benefits for communities and economies. 

Its analysis of four major climate and development funds: the Global Environment Facility (GEF), the Green Climate Fund (GCF), the Adaptation Fund, and the International Climate Initiative (IKI), suggested that support for green initiatives with some element of nature-based solutions has risen over the last two decades.  

Cumulative investment for climate change mitigation and adaptation projects under the four funds stands at $94 billion. However, only $12 billion was spent on nature-based solutions, a tiny fraction of total adaptation and conservation finance, it added. 

Cutting emissions will reduce costs 

Cutting greenhouse gas emissions will reduce the impacts and costs associated with climate change, according to the report. Achieving the 2 degrees Celsius target of the Paris Agreement could limit losses in annual growth to up to 1.6 per cent, compared to 2.2 per cent for the 3 degrees Celsius trajectory. 

UNEP urged all nations to pursue the efforts outlined in its December 2020 Emissions Gap Report, which called for a green pandemic recovery and updated Nationally Determined Contributions (NDCs) that include new net-zero commitments.  

“However, the world must also plan for, finance and implement climate change adaptation to support those nations least responsible for climate change but most at risk,” the UN agency added. 

“While the COVID-19 pandemic is expected to hit the ability of countries to adapt to climate change, investing in adaptation is a sound economic decision,” it said. 

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Guterres: COVID-19 recovery offers ‘chance to change course’

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The process of recovery from the coronavirus pandemic offers the chance to change course, and put humanity on a path on which it is not in conflict with nature, the United Nations Secretary-General said on Monday, urging greater efforts by everyone to protect biodiversity and step up climate action. 

Addressing world leaders at the One Planet Summit, Secretary-General António Guterres outlined the consequences of abusing Earth and its resources. 

“We have been poisoning air, land and water – and filling oceans with plastics. Now, nature is striking back: temperatures are reaching record highs, biodiversity is collapsing, deserts are spreading, [and] fires, floods and hurricanes are more frequent and extreme,” he said. 

“We are extremely fragile”, Mr. Guterres warned. 

Combined with the devastating effects of COVID-19 and its socio-economic fallout, the UN chief reminded everyone that “as we rebuild, we cannot revert to the old normal.”  

“Pandemic recovery is our chance to change course. With smart policies and the right investments, we can chart a path that brings health to all, revives economies and builds resilience and rescues biodiversity”, he highlighted. 

‘Everyone must do much more’ 

The Secretary-General noted that innovations and nature-based solutions are especially promising, and that preserving biodiversity also creates jobs. According to the World Economic Forum, emerging business opportunities across nature could create 191 million jobs by 2030, he added. 

At the same time, with a financing gap of $711 billion per year until 2030 to meet global biodiversity targets, increased and sustained financing will be crucial to transition away from polluting sectors, Mr. Guterres said. 

“The time has come to…align public and private financial flows with the Paris Agreement commitments and the Sustainable Development Goals (SDGs) and integrate the goal of carbon neutrality into all economic and fiscal decisions.” 

The UN chief also urged support for the most vulnerable, who are already suffering the effects of climate change, such as the least developed countries and small island developing States. 

‘The sign of hope’ 

“Everyone must do much more … We begin a new year under the sign of hope. Together, let us seize the opportunity to build a safer, fairer and more sustainable world,” he added. 

Organized by the French Government in partnership with the United Nations and the World Bank, the One Planet Summit brought together world leaders to commit action to protect and restore bio-diversity. Due to the coronavirus outbreak, the event was largely virtual.  

Opening the Summit, French President Emmanuel Macron, declared that protecting and restoring biodiversity is “in our interest”. 

Alongside creating millions of jobs between now and 2030, the natural world offers many benefits, he said, adding that intact forests and ocean ecosystems can help meet climate targets by acting as carbon sinks. 

‘Nature offers solutions’ 

“Nature offers solutions for developing sustainable agriculture, for economic and financial services, helping us to preserve our heritages and cultures”, said the French President.  

Mr. Macron outlined four key priorities for action: protecting terrestrial and maritime ecosystems, to allow nature to regenerate; promoting agro ecology to safeguard environment, strengthen food-security and reduce inequalities; mobilizing public and private financing, which would support both climate action and protect biodiversity; and reducing deforestation, especially tropical forests, to protect species and human health. 

African greening initiative receives $14 billion 

Also on Monday, the Great Green Wall for the Sahel and Sahara, an initiative to combat desertification in the vast region, received a pledge of more than $14.2 billion in new funding over the next 10 years, to restore degrading land, protect biodiversity and strengthen resilience. 

According to the UN Convention on Combating Desertification Secretariat (UNCCD), overall, about $33 billion needed by the initiative to achieve its ambitious targets to restore 100 million hectares of degraded land, the soil capture of around 250 million tons of atmospheric carbon, and creation of some 10 million green jobs for communities, by 2030. 

Mohamed Cheikh El-Ghazouani, President of Mauritania and the Chair of Conference of Heads of State and Government of the Pan African Agency for the Green Great Wall, welcomed the announcement.  

“The mobilization of this additional funding through an innovative approach will certainly contribute to the achievement of the Great Green Wall goals”, he said. 

Since its inception in 2007, the country-led Great Green Wall programme has planted billions of trees and supported tens of thousands of local households. Its path snakes along the southern margin of Africa’s Sahara Desert running from the Atlantic coast to the Red Sea. 

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