While the COVID-19 epidemic and the Russian war in Ukraine will focus on the gathering of the World Economic Forum for business and government leaders, as well as climate change. It has attracted worldwide attention in invisible and hurtful ways. The rapid rise in temperatures, violence and the cost of major weather events, as well as the impact, especially on people in developing countries, have shifted the subject from science to something that affects all aspects of life, including (or, perhaps most importantly) business and economics.
Of the approximately 270 panels from Monday to Thursday, one-third are about climate change or its direct effects. The American ambassador John Kerry, Ugandan weather activist Vanessa Nakate and Alok Sharma, president of last year’s COP26 international conference, are among the expected climate leaders in the Swiss city of Davos. At the first round of the forum in two years, the weather panels vary as a matter of course. From fighting “environmental concerns” to helping debt-ridden countries finance renewable reforms. Here’s a look at some of the more common themes that may appear:
ENVIRONMENT, SOCIAL, SOVEREIGNTY
Several panels will deal with an investment approach that takes into account the environment and other important factors. Known as the abbreviation ESG, it has become a powerhouse, having invested billions of dollars in companies that meet certain conditions.
When it comes to climate change, an ESG can be important. For individual investors as far as corporations and government agencies are analyzing companies, performance disclosures and public announcements are crucial. It can be the basis for examining a company’s carbon emissions, the environmental impact and the financial risks associated with climate change.They are also controversial and raise questions: Should certain announcements be mandatory? Should they be the same and controlled, and by whom? Or has the ESG movement already gone too far, ended up blocking investment and doing little to strengthen greenhouse gas emissions?
Ideas sometimes clash with politics. In the US, many Republicans call them “awakened,” while many on the left, especially environmentalists and campaigners, argue that accumulating reporting and transparency can lead to real change. Many executives of the world’s largest joint ventures have argued that the ESG is important for risk assessment. Last week, Tesla CEO Elon Musk said the approach was “armed with senseless legal heroes.”
POWER CHANGE AND ‘NET ZERO’
Top global climate scientists have warned that drastic reductions in greenhouse gas emissions over the next decade are needed to reduce global warming and to avoid catastrophic effects. That will require major changes in the way the business is run, from the way products are produced to the way they are shipped.
A number of panels will look at areas where businesses have successfully transformed a large portion of their energy portfolio into renewable resources, the role of finance and government in promoting or approving change, and accountability strategies. Despite great awareness and business promises, exports are rising worldwide.
“Removing the climate debate from demand to delivery” is the title of a single panel that summarizes a major challenge. The sessions will focus on sectors, such as shipping and aviation carbon, renewable energy programs and challenges to implement in countries such as China and India. There will be a discussion on strategies to ensure that big shifts are inclusive and considerate for previously disadvantaged internationals, who feel some of the worst effects of climate change.
The most important moment in every conversation will be identifying what the “net zero” — and what not — is when you look at the promises from companies and countries. A move away from fossil fuels such as coal and oil to renewable fuels such as solar and wind can reduce carbon emissions and bring the company closer to its goal of absorbing the same amount of greenhouse gases as it emits but switching to renewable resources often makes up a small part of the company’s plans. Many rely on balancing their carbon footprint by investing in forest rehab or other projects. Although better than nothing, experts recognize that depending on the carbon offset represents a change in business processes.
THE WAR IN UKRAINE AND THE FUTURE OF POWER
The Russian war in Ukraine will intensify in the summit. When it comes to climate change, the conflict raises two key questions: How should countries respond to impending power reductions or cuts in Russia’s oil and gas? And will the war accelerate the transition to renewable energy or help fossil fuels to maintain the status quo?Since the war began, there has been no shortage of business, environmentalists and political leaders trying to influence the answers to those questions, which will extend to Davos.
“Energy Security and the European Green Deal” is one panel in which participants are expected to argue that the way forward is far from fossil fuels. But European countries, some of which rely heavily on Russia for energy, are also struggling to find alternative sources of natural gas and oil to meet short-term needs.While there are no clear-cut times to rely on fossil fuels or extensions or exploration, if a few months ago there was a guide, those look points would definitely be there.
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