[Opinion] Measuring to raise corporate ambition

The start of a new year invites us to reflect on business resilience and the climate crisis. We are approaching 2030, which is critical to achieving the ambitious goal of reducing global emissions by 50%, and avoiding the worst impacts. The report Integrity Matters presented by high-level experts at COP27, proclaims the importance of the involvement of business, the financial sector and cities in climate action; on this depends the possibility of “scaling up ambition to ensure a sustainable planet, or increasing the likelihood of failing to do so”. 

It is a trend in the world's largest companies to set carbon neutrality goals and analyze climate risk. But how are we doing in Latin America? There is little information on the subject, given that the percentage of companies that publish their commitments and progress is low; for example, only 3% of companies in the platform Science Based Targets (SBT) are from LATAM. In order to learn how companies in the region are contributing to the Paris Agreement and to understand their motivations and challenges, Libélula created the Latin America Corporate Climate Action Report, a survey that included 109 companies from 9 countries. 

The good news is that the number of companies which is by measuring its carbon footprint has increased 28% emissions in the last 5 years and are also expanding the scope of measurement. One third of them are considering the emissions of their value chain. On the other hand, 72% has identified measures to reduce its emissions, but only 32% has a concrete plan to do so. 

According to the Report, getting started on the road to sustainability is not easy for the Latin American business sector. Incentives, regulations, and consumer and market demand for change are incipient. In addition, most operate in emerging economies, which are highly affected by COVID-19. However, the more mature companies decided to take action because they identified future risks and chose to anticipate them. They report that they have achieved significant savings, filled new market niches, improved their license to operate and created jobs. 

The region's business sector faces a number of challenges on its path to sustainability. 
Knowing your level of climate maturity, as well as measuring your carbon footprint are two decisive steps to build more resilient companies that contribute to a more sustainable planet.