Why is Net Zero important for tackling climate change?

https://twitter.com/homeĀ https://www.facebook.com/Shabbir.Hussain191
By Shabbir Hussain

‘Net Zero’ refers to the emission of man-made greenhouse gases and their elimination from the atmosphere.

To achieve this balance, GHG emissions must be reduced to near zero. The remaining emissions can be neutralized by long-term carbon capture solutions, including tree planting or funding for carbon offset projects..

More recently, there has been a global commitment to tackle climate change, with more than 70 countries participating, and a commitment to reduce greenhouse gas emissions from current levels to zero by 2050. has been.

However, despite scientific consensus to limit global warming to 1.5 degrees Celsius above the early 19th century to prevent climate change, national climate improvement plans are not sufficient to reduce emissions as required.

However, governments are slow to act while private companies are raising the climate agenda, with at least 2,000 business and economic organizations working to reduce greenhouse gas emissions in the wake of climate change. Is committed to

This momentum is due to pressure from investors and consumers to limit companies’ emissions, and to understand the competitive advantage that is being gained.

Some governments have introduced environmental, social and governance regulations to allow companies to recognize their ESG effects and allow investors and consumers to make informed decisions.

The US Securities and Exchange Company has put forward proposals that require companies to disclose climate risks to businesses and plans to address those risks with mandatory disclosure of companies’ climate effects. Is.

The EU’s Guidelines for Sustainable Financial Regulation and Corporate Social Responsibility aim to improve the sustainability and financing of funds by end-investors.

India and Bangladesh have also enacted legislation in line with global trends.

However, under the Code of Corporate Governance Guidelines (2017) in Pakistan, the Company’s Board of Directors is responsible for the implementation of ESG, health and safety business practices, including reports on corporate social responsibility activities and compliance status. Is.

Multinational corporations and individuals with international customers voluntarily publish annual sustainability reports that reflect their current ESG impacts and future sustainability goals.

The 59th review of the Financial Performance Study on Climate Change and Low Carbon found that 57% of positive results were received from the corporate sector.

The said performance is characterized by the transition to more sustainable production, renewable energy, innovative, high-performance manufacturing processes and the transition to closed production loops.

Pakistan already has green financial incentives to support such activities, the State Bank of Pakistan’s financing scheme for renewable energy encourages conversions towards renewable energy and in addition Askari Bank’s bright finance is traditional. Offers subsidized financing for sustainable energy projects to reduce consumption of hydrocarbon based energy sources.

The Pakistan Business Council’s Center of Excellence in Responsible Business points out that in many emerging economies where capital market reporting is the primary impetus, ESG matrix stock listing requirements are growing rapidly.

The Pakistan Stock Exchange, in its annual Reporting Awards and Award Points, also acknowledges the importance of non-financial matters in terms of sexual representation and companies that report at least on sustainable development objectives.

ESG with strong plans to decarbonize its supply chain, improve energy, water and carbon footprint and adapt to international sustainability best practices to stay competitive in international markets, Pakistan’s textile industry major players Are ahead in the game

Achieving science-based greenhouse gas emissions reduction targets is important from an environmental point of view, but doing so also reduces the significant business and reputation risks facing companies.

Pakistani companies need to work urgently to strengthen ESG reporting and move towards sustainability commitments for both climate and future competitiveness of companies as they move into a purely zero business environment. Have been

LEAVE A REPLY

Please enter your comment!
Please enter your name here