What's Happening?
EY's Global Climate Action Barometer reveals that businesses expect climate inaction to cost 15% of their annualized revenue on average. Despite this concern, only one-third of businesses are assessing
the financial impact of climate-related risks. The research highlights a gap between climate-related concern and strategic action, with many firms lacking ambitious climate targets and relying on carbon offsetting.
Why It's Important?
The findings from EY highlight the challenges in achieving meaningful change in global climate policies. The gap between concern and action underscores the need for systemic changes in policy and investment to address the environmental impact of climate change. Addressing these challenges is crucial for reducing the industry's environmental impact and contributing to global efforts to combat climate change.
What's Next?
Businesses must focus on setting ambitious climate targets and implementing transition plans to address climate-related risks. The outcome of these efforts could influence future climate policies and international cooperation. The emphasis on collective action and addressing inequality is crucial for mitigating the effects of climate change and protecting vulnerable populations.
Beyond the Headlines
The findings from EY reflect broader challenges in transitioning to sustainable practices. The reliance on traditional energy sources and the lack of financial support highlight the need for systemic changes in policy and investment. Addressing these challenges will require collaboration and innovation to achieve meaningful reductions in emissions and contribute to global climate goals.
