112 CEOs and Senior Execs Call for Climate Action Ahead of COP29

More than 100 senior executives and CEOs from the World Economic Forum’s Alliance of CEO Climate Leaders have shared an open letter addressed to global leaders ahead of the United Nations COP29 Climate Change Conference in Baku, Azerbaijan.

Among the 112 company heads were chairs and CEOs of IKEA, Volvo Cars and AstraZeneca, who pushed governments to promote the case for green investment by global businesses, the Financial Times said.

The open letter’s display of support for climate action by the alliance comes as disagreement has been creating division on corporate climate efforts by businesses.

The alliance represents 12 million employees and $4 trillion in revenues. From 2019 to 2022, aggregate emissions were reduced by 10 percent by alliance members, reported the World Economic Forum. During the same period, there was an 18 percent growth in revenue.

Many international corporations have started scaling back emissions goals, putting the blame on governments for not providing enough standards and financial support for green technology and energy.

“The developing world needs $5.8-5.9 trillion for climate finance, covering both mitigation and adaptation, by 2030. The New Collective Quantified Goal must be raised significantly to aid developing countries disproportionally affected by climate change,” the corporate heads wrote in the letter.

Jesper Brodin, chief executive of IKEA stores’ main operator Ingka Group, said the signatories to the letter want governments to set ambitious goals and “remove some of the obstacles for industries and companies to make the investments,” the Financial Times reported.

“We need more interaction, more support and more collaboration from policymakers around the world in order to both enable investments and speed up investments,” Brodin said.

In their letter, business leaders expressed support for carbon pricing, developing high-quality carbon markets and ending fossil fuel subsidies.

“The distance between the [businesses] who are on the train to the new economy, the smart economy, and the ones on the platform is increasing,” Brodin said. “It is not always easy, because it is very transformative…  [but] you have a very large group of companies representing every sector who are on the train and who are transforming or investing and are reaping the benefits of the new economy.”

The authors added that regulators and policymakers needed to remove obstacles stopping nations from meeting COP28 pledges to double energy efficiency and triple renewable energy by 2030, as well as provide more financial and regulatory support for new green technologies.

“We call on governments to upgrade their [Nationally Determined Contributions (NDCs)] and international collaboration to close the ambition gap: the Global Stocktake shows that NDCs only provide for ~5% emissions reductions by 2030, far short of the 43% needed. NDCs should offer clear transition plans that provide the transparency businesses need for investment, transforming them into national roadmaps for growth, competitiveness and the future green workforce,” the letter said.

The company heads emphasized that business leaders must act alongside governments by committing both “strategically and financially” to achieving net zero.

“We urge our peers to demonstrate leadership and accountability in decarbonizing their operations and value chains by setting science-based targets, disclosing progress and developing climate transition plans, consistent with evolving frameworks and standards,” they said in the letter. “We stand ready to collaborate with governments and peers to build on COP28 momentum at COP29 and beyond. By working together and taking the actions outlined in this letter, we can drive more action on climate and avoid every fraction of a degree of warming.”