Lessons from COP26: tips for startups to adopt ESG

Conference has become the largest and most important climate conference on the planet
Lições da COP26 dicas para startups adotarem o ESG
Carbon Offset is already considered a new market

On October 31st, in Glasglow, Scotland, the COP26, an event that brings together almost 200 countries and will receive more than 20 thousand politicians, scientists and business leaders with the aim of discussing effective actions to accelerate the objectives of the 2015 Paris Agreement and the United Nations Convention on Climate Change.

Created in 1994, two years after the Earth Summit, held by UN (United Nations) in Rio de Janeiro, the COP, as it came to be called, became the largest and most important climate conference on the planet. 

In the agenda of this annual event, nations agreed to 'stabilize concentrations of Greenhouse Gases in the atmosphere' to prevent dangerous interference by human activity in the climate system, which currently has 197 signatories.

Given this scenario, COP26 has addressed the urgency of complying with this treaty. This is because, according to a climate study by the Met Office, funded by the European Union, at least 1 billion people will be affected by extreme heat if global temperatures increase by 2°C, as a result of GHGs. 

Tropical countries, including Brazil, are the most affected by extreme heat stress, with some regions reaching temperatures above the limit of human capacity. In other words, since 1994, we have not achieved the objective of reducing pollution and GHG emissions on the planet. Former President of the United States (USA), Barack Obama, himself highlighted: “We did not do enough to face this crisis”.

But while world leaders will be the faces of any agreements that are signed, startups, or greentechs, will be at the forefront of developing new technologies that can turn these promises into reality, through opportunities for innovative businesses, much needed in the fight against climate change.

And why are we talking about startups and COP26? Because it has everything to do with it! It is from this global meeting that the goals and trends for reducing pollutant gases, improving and renewing the energy sources we use and the future of consumption habits will emerge.

For example, 20 years ago, electric vehicles seemed to belong to a distant future, something out of fictional films, and today they are breaking sales records, as shown in PwC's latest study on the sector, with an increase of 123% in the first quarter alone. this year, all over the world. Or even, who would have imagined 10 years ago, that Europe would be closing coal plants thanks to the boom in wind and solar energy on the continent?

Clean energy technology companies like Edmond are at the forefront of cutting GHG emissions and there are hundreds of greentechs around the world taking on this challenge and not only innovating at an unprecedented rate, but delivering solutions that democratize access to this type of energy. 

COP26: ESG for startups

All startups, not only with solutions, but also with mindset truly innovative companies have had or are having meetings over the last year on Environmental, Social and Governance (ESG). And not only because this topic has become news in the business world, but also because companies want to prove – to their customers, partners and suppliers – that they are taking their responsibilities beyond the corporate balance sheet.

Edmond, for example, is aware of its corporate responsibilities and committed to the important role it plays in its value chain, in addition to its ESG agenda, it is also a signatory to the UN Global Compact for SDGs 7, 8, 9 and 13 ( Sustainable Development Goals).

This is an important step for any startup, whether at the beginning of its operations or already mature, regardless of its market sector, to show how committed it is to the environment. After all, you don't literally have to be a greentech to help transform the world. Therefore, I suggest here some tips on how it is possible to put a culture focused on the environment into practice:

  • Carbon footprint: Drawing a company's carbon generation map is not easy or quick, but it is an efficient way to help find CO2 emission points in a business's operation, and once found, these points can be more easily closed. There are solutions and consultancy services that can suit the size of your startup;
  • Chief Sustainability Officer – CSO: This is a position that has been gaining prominence in many startups and large companies in all countries. These professionals supervise activities related to reducing environmental impacts and applying sustainability principles at each stage of the business. They develop, implement and evaluate programs for their employers that support social, environmental and economic sustainability objectives;
  • Carbon Offset: Every company emits CO2 in its operations, so startups that provide more resources can adopt the purchase of Carbon Credits, a way of reallocating carbon dioxide into the atmosphere. It works like this, one (1) Carbon Credit is equivalent to one (1) ton of carbon dioxide emitted, that is, you would be purchasing the equivalent of your CO2 emissions, for example, from companies that invest in social actions, local communities and environmental.

Carbon Offset is already considered a new market, and has mobilized thousands of institutions and even people around the world. In total, this sector generated a turnover of 229 billion euros in 2020. Currently, there are countless options for buying and selling carbon credits, which, like startups, was not common to see a few years ago.

And that's what gives us hope for the future. The new challenges we are facing, which are not few, such as the scarcity of water resources, the increase in pollution and unrestrained consumption, among others, require new solutions and startups will undoubtedly be an important part in achieving this, through innovation. and technology, save the planet.

Picture of Monalisa Gomes
Mona Lisa Gomes
Advisory advisor for ESG at Edmond. He worked as CEO of Fronius in Brazil. Today, she works as a learning facilitator for the Innovation Leadership course at MIT (Massachusetts Institute of Technology). Mentor of the "We for Elas" female leadership program. Member of the advisory board of the "Diversity and Inclusion Forum" of CKZ Diversidade.

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