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The 2023 IPCC AR6 Synthesis Report: a final wake-up call for Climate Action

The Intergovernmental Panel on Climate Change (IPCC) has released its latest report on the state of the planet’s climate “2023 IPCC AR6 Synthesis Report “. The report, which was compiled by hundreds of scientists from around the world, provides a stark warning about the urgent need to address the climate crisis.

The report concludes that human activity, particularly the burning of fossil fuels, is driving unprecedented changes in the Earth’s climate system, resulting in rising temperatures, sea level rise, and more frequent and intense weather events. These changes significantly impact ecosystems, food systems, and human health and well-being.

The 2023 IPCC AR6 Synthesis Report – Key Findings:

The earth is warming at an unprecedented rate

Human influence has warmed the climate at an unprecedented rate in the 21st century, and the current warming is highly likely to exceed 1.5°C above pre-industrial levels in the next two decades. Limiting global warming to 1.5°C above pre-industrial levels will require rapid, far-reaching, and unprecedented changes in all aspects of society, including the energy, land, and industrial sectors.

Immediate, rapid, and large-scale reductions in greenhouse gas emissions are needed to limit global warming to 1.5°C and mitigate the worst impacts of climate change. Adapting to the impacts of climate change is also essential, particularly for vulnerable communities and ecosystems.

The impacts of climate change are already being felt around the world.

The report highlights that climate change is not some far-off threat, but rather a present-day reality that is already having significant impacts on people and the planet. These impacts include more frequent and severe heatwaves, droughts, floods, and wildfires, as well as rising sea levels and ocean acidification.

There is a narrow window of opportunity to prevent the worst impacts of climate change.

Despite the bleak picture painted by the report, there is still hope. The report notes that we still have a narrow window of opportunity to prevent the worst impacts of climate change. However, this will require immediate and decisive action from governments, businesses, and individuals around the world.

The 2023 IPCC AR6 Synthesis Report was released in March 2023. Read this short summary of key findings from the report!

The message of the IPCC report is clear for business managers like you 

One of the report’s key messages is that the world is already experiencing the impacts of climate change which will only worsen in the coming decades, even if we take immediate and ambitious action to reduce greenhouse gas emissions.

However, the report also emphasises that the worst impacts of climate change can still be avoided if we act quickly and decisively to limit global warming to 1.5°C above pre-industrial levels. For the business sector, this means that management must prioritise sustainability and invest in renewable energy and low-carbon technologies.

For sustainable business operations, it is essential to conduct a comprehensive risk assessment for adapting to climate change.

  1. Reducing emissions is an absolute requirement for a company’s business operations and throughout the value chain (scope 1, 2, 3). It is recommended that corporate management set science-based climate goals on their agenda already this spring.
  2. Considering biodiversity alongside climate goals is equally important in developing a company’s sustainability strategy. Companies should identify how their operations affect biodiversity and make a plan to minimise those impacts.

Lastly, the scientific evidence presented in the IPCC report reinforces the ambitious requirements already adopted by the EU for complying with the climate goals of the Paris Agreement. Limiting global warming to 1.5 degrees Celsius also requires companies to take action to reduce emissions across all economic sectors.

The IPCC report is a wake-up call for all of us

We must act now to address the climate crisis before it’s too late. Here are some things you can do to help:

  • Reduce your company’s carbon footprint by investing in energy-efficient technologies, using renewable energy sources, and implementing sustainable business practices.
  • Support political candidates and policies prioritising climate action and promoting a sustainable business environment.
  • Join a local climate organization or advocacy group to collaborate with like-minded businesses and individuals and advance the movement for climate justice.
  • Educate your employees and customers on the importance of sustainable practices and the impact of climate change and encourage them to adopt environmentally responsible behaviours.
  • Take part in industry-wide initiatives to reduce carbon emissions and promote sustainable business practices, such as participating in carbon markets or joining industry associations dedicated to climate action. Such as Science-based targets.

 

Together, we can create a sustainable and just future for ourselves and future generations.

To continue this conversation, send us an email via the form below.



    Writer: Terhi Valtonen, Senior sustainability consultant, M.sc. (Admin)

    IPCC 2023 AR6 Longer report

    The science-based target for Nature – at the core of business strategy

    The science-based target for Nature (SBTs for Nature) is leadership’s next must-have. Biodiversity loss and degradation of nature are increasing; therefore, businesses need to take biodiversity into account when creating their strategies and sustainability reports.

    Biodiversity loss influences ecosystems, species extinction and the natural resources humans need. Companies working in forestry, farming, convenience, and infrastructure industry will be impacted first.

    Science-based Targets (SBTs)

    Science-based Target (SBT) mean emission reduction targets that are lined with the Paris Climate Agreement: targets support limiting global warming to well below 2°C compared to pre-industrial times and support efforts to limit warming to 1.5°C. With SBTs you know exactly how much and how fast you need to cut your greenhouse gas emissions.

    Science-based means acting within limits of the earth’s carrying capacity that are favorable and safe for nature and humans, and determined by scientifically studied information.  Additionally, target needs to be measurable, time-bound and impact the company’s activities.

    The most known SBTs are Science-based Targets for Climate. SBT for Climate is widely known and globally used by various companies. The initiative is based on science-backed knowledge of how to cut greenhouse gas emissions globally to preserve living conditions. Companies committed to SBTs achieve on average better results than those not committed to SBTs.

    What are science-based targets for Nature?

    Science-based Target Network, SBTN, is preparing a Science-based target for Nature (SBT for Nature) model for companies, just like the Science-based target for Climate (SBT for Climate). In the SBT for Nature, companies will find guidelines for leading and reporting on companies’ actions to prevent future biodiversity loss.

    The model will include the following steps:

    1. Evaluate. Carry out a materiality assessment. Look at the business value chain.
    2. Interpret and prioritize. Identify the affected areas. Prioritize.
    3. Measure, set goals & report. Set the base level. Plan your observation. Set goals. Report baseline and goals.
    4. Act. First of all, avoid adverse effects. Reduce them. Protect and restore. Convert.
    5. Track the impact of your results. Report. Verify.

    SBT for Nature will cover biodiversity, freshwater, ocean, and land. The model is still under development, currently, the principles, elements and guidelines are being tested. The first part of SBT for Nature V1, is published in March 2023

    Science-Based Target for Nature - luontokadon ehkäiseminen ja tieteeseen perustuvat tavoitteet

    How does Science-based Target for Nature differ from SBT for Climate?

    Science-based Targets for Climate aims to stop global warming to 1.5 degrees Celsius in accordance with the Paris climate agreement. Companies committed to climate goals have one clear goal, reducing greenhouse emissions. How the goals are achieved is freely up to the companies, and progress is easy to measure.

    Currently, there is no global goal to protect nature, as there is for the climate. Prevention of biodiversity loss is location-bound, both in terms of influencers and consequences. Reducing greenhouse emissions is not location-bound.

    The decrease in biodiversity is accelerated by changing, diverse and interacting factors. Biodiversity loss does not manifest itself in the same way globally, in which case protecting biodiversity and monitoring progress requires location-related goals.

    SBT for Nature considers several different dimensions: water bodies, and the well-being of the soil and the seas, and requires site-specific plans and goals. Companies must therefore have separate goals for the use of fresh water, pollution of fresh water and so on.

    Ecobio’s biodiversity services for companies

    We offer biodiversity services ranging from research to leadership consulting. The expertise of Ecobio’s biodiversity team is created at the intersection of many disciplines – from the cooperation of specialists in biology, geography and management.

    We will be happy to discuss more how you can move forward in taking nature into account in your business.

    Ecobio is the expert partner of leading companies in biodiversity.

    We help you balance business and nature.



      Sustainability reporting in Europe – All you need to know

      Every year sustainability reporting in Europe for companies operating in the European Union accelerates. Below you can read the key points of corporate sustainability reporting that are valid today and in the future.

      EU Green Deal

      Climate change and biodiversity degradation pose a threat to Europe and the world. To prevent aggravating climate change further and to overcome the challenges caused by climate change and biodiversity loss, the European Union established a European Green Deal.

      The EU Green Deal’s short-term goals are:

      • Europe to be the first climate-neutral continent by 2050
      • Cut greenhouse gas emissions by 55% compared to 1990-levels
      • 3 billion trees planted in the EU by 2030

      In the long term the Green Deal aims to transform the EU into a modern, resource-efficient and competitive economy, ensuring:

      • no net emissions of greenhouse gases by 2050
      • economic growth decoupled from resource use
      • no person and no place is left behind

      Corporate Sustainability Reporting in Europe

      Under EU law large companies are obligated to report annually on company operations and how a company manages social and environmental challenges. The sustainability reporting regulations help to direct financing towards sustainable companies and activities, supporting the EU Green Deal goals for 2030 and 2050.

      A key contribution to achieving the European Green Deal goals is to improve the data on the sustainability risks companies are exposed to and their impact on people and the environment. Improved data requires improved and mandatory corporate reporting on these issues.

      Today, approximately 12000 public-listed companies are required to report, however, by 2027 over 50 000 companies will be impacted by European sustainability standards under the Corporate Sustainability Reporting Directive (CSRD).

      • All large companies (stock market lister or not) will have to adhere to the European sustainability standards, already reporting companies from 2025 and large companies currently not reporting from 2026.
      • Listed SMEs will have time until 2027 to adapt to coming reporting standards and requirements.
      • The reporting requirements will also cover companies with headquarters outside the EU with over 150€ million in turnover in the EU from 2029.

      European sustainability reporting standards

      The European Sustainability Reporting Standards (ESRS) specify the obligations of the Corporate Sustainability Reporting Directive (CSRD).

      The ESRS define the minimum level of mandatory corporate responsibility information for companies. All companies report in addition to the general principles related to sustainable business operations:

      • strategy and business model
      • sustainability effects
      • sustainability risks and opportunities.

      The standards were prepared with the choices of various stakeholders, the European financial reporting advisory group EFRAG in November the second set of EU sustainability reporting standards. Based on these 12 standard drafts, the commission will publish this standard in the summer of 2023. Read more here.

      Mandatory reporting requirements

      In 2023, the first round of full EU taxonomy reporting was required from companies reporting under the NFRD. From 2024 onwards, the scope of the EU taxonomy will expand as the Corporate Sustainability Reporting Directive (CSRD) is implemented, requiring more and more companies to include EU Taxonomy information in their sustainability reporting.

      Corporate Sustainability Reporting Directive (CSRD)

      With CSRD reporting, a larger part of companies operating in the EU will be covered by taxonomy reporting, and in addition, companies must publish more detailed information in connection with their activity report, e.g., about the environmental and social impacts of their business.

      The CSRD scope:

      • Starting from 1 January 2024, all listed companies that employ more than 500 people (i.e. those that are already covered by the NFRD and are obliged to prepare a statement of non-financial information and to publish information according to the EU taxonomy).
      • From January 1, 2025, listed and unlisted companies with more than 250 employees and more than €40 M in turnover.
      • SMEs listed from 1 January 2026.
      • Third-country companies with net turnover above 150 million in the EU from 1 January 2029.

      5 steps to prepare for CSRD – read more here

      EU Taxonomy

      EU taxonomy is part of the EU Green Deal, which aims to promote the EU carbon neutrality targets by 2050. EU taxonomy requires companies to classify their environmentally sustainable activities and investments. The aim of the Taxonomy is to get the financial market to direct investments towards more environmentally sustainable solutions.

      As of January 2023, companies must assess the sustainability of their economic activities. This must happen in accordance with the technical screening criteria for the EU taxonomy climate goals.

      EU Taxonomy in a nutshell – Read more here.

      EU’s Directive on Corporate Sustainability Due Diligence (CSDD)

      In February 2022, the European Commission proposed a Directive on corporate sustainability due diligence (CSDD). CSDD places companies with a key role in building a sustainable economy and society in the EU and complements several current sustainability reporting legislation, such as the CSRD, the Sustainable Finance Disclosure Regulation and the EU Taxonomy regulation.

      Under the CSDD companies are required to:

      • integrate due diligence into policies;
      • identify actual or potential adverse human rights and environmental impacts;
      • prevent or mitigate potential impacts;
      • bring to an end or minimise actual impacts;
      • establish and maintain a complaints procedure;
      • monitor the effectiveness of the due diligence policy and measures;
      • and publicly communicate on due diligence.
      The future of sustainability reporting

      As sustainability reporting within Europe continues to develop, the legal and mandatory reporting requirements and due diligence work within the EU will increase. The EU aims to set a global standard for sustainability work and key features of sustainability reporting will have an impact outside the EU, encouraging the rest of the world to follow suit.

      European countries outside the EU will most probably incorporate, or at least benefit from voluntary reporting from an early stage due to higher market pressure. All third-country companies with EU subsidiaries will have to report sustainability information based on CSRD from 2029, thereby affecting companies also on other continents.

      The immediate next steps of future sustainability reporting in Europe include the adaption of the Corporate Due Diligence Directive and the addition of activities under the EU Taxonomy regulation. The EU has high ambitions for setting a legal framework to achieve the goals of the European Green Deal and combat the most threatening sustainability risks that impact our societies today.

      Sources

      https://www.consilium.europa.eu/en/press/press-releases/2022/11/28/council-gives-final-green-light-to-corporate-sustainability-reporting-directive/

      https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1145

      Science-based targets (SBT)

      Science-Based Targets Initiative

      The Science-based targets initiative (SBTi) was created to promote climate action in the private sector, helping companies to set science-based emission reduction targets for their own operations.

      The initiative sets clear action guidelines for companies to reduce greenhouse gas emissions. These measures help prevent the worst effects of climate change and support the growth of a climate-friendly business.

      Goals are considered “science-based” if they are consistent with what the latest climate science considers necessary to achieve the goals of the Paris Climate Agreement: goals support limiting global warming to well below 2°C compared to pre-industrial times and support efforts to limit warming to 1.5°C.

      According to SBTi’s report for last year, during 2015–2020, companies committed to SBTi have significantly reduced emissions related to their own operations compared to the global average.

      Science-Based targets initiative annual progress report 2021

      Watch the Ecobio webinar: Science-Based Targets – what and why?

      In Science-Based Targets – what and why? -webinar leading consultant Inka Koskinen and consultant Mai Kärppä summarize what Science-Based Targets mean, what kind of obligations the regulation imposes on companies and why companies should join the SBT initiative. The webinar is in Finnish.

      Webinar Agenda:

      • New obligations come from regulation
      • Science-based Targets initiative
      • Joining the initiative
      • Emission calculation required by SBTi
      • Setting emission reduction targets
      • Benefits of joining the initiative

      Watch the recording to find out how you too can reduce business emissions and how to get started with the SBT initiative!

      If you wish to download the webinar recording, you can find it here. 

      How to get started with the SBT initiative!

      The SBT initiative requires the determination of planned goals for the business. Short-term emission reduction targets are set for 5–10 years or a long-term target in which emissions are reduced by at least 90% by 2050.

      Determining the emission reduction targets also means calculating the emissions of the base year so that the development can be monitored. This means calculating the carbon footprint of the business according to the GHG protocol. The goals must also comply with SBTi’s criteria in order to be considered science-based.

      Ecobio services related to the SBT initiative

      Our consultants will clarify for you what the measures outlined in SBTi mean for your business. We help determine the carbon footprint of your operation and set emission reduction goals in accordance with SBTi. We advise what actions you need to take in your business structures and value chain in order to achieve the set goals.

      Please contact us below