By: Sarah Franciscolo - Manager of nexos+1
This week we see several countries in the region affected by extreme weather events, from an unprecedented heat wave in Argentina to an unusual cyclone on the Pacific Ocean coast that is generating heavy rainfall and flooding in Peru and Ecuador.
Even more worrisome than the suffering and damage these events are generating is the realization that this is only the beginning of what is to come.
Human activity has irrevocably changed the global climate. Even if it were possible to stop all greenhouse gas emissions today, we would feel the consequences of a warmer atmosphere for several years to come. Faced with this scenario, companies face a double challenge - to increase their resilience to a changing climate and at the same time transform their business to decarbonize it in order to ensure their future sustainability.
In the Latin America Business Climate Action Report 2022, Of the 109 Latin American companies surveyed, 22% have identified the risks and opportunities that climate change presents to their business, and another 65% are in the process of doing so. 69% already measure their carbon footprint, but only 32% have a climate action plan to make reductions and monitor them. This is important because having a climate action plan has a strong impact on companies' climate ambition. Companies that have a climate action plan are 2 times more likely to have reduction and carbon neutrality targets.
What these figures tell us is that companies are aware of their impact, but they need to prioritize it in their business strategy and do the hard work of changing the way they operate in order to achieve a resilient business aligned with the decarbonization of our economy. We invite you to read the Report and the best practices report: Making Latin American Business Climate Action Visible, which details the cases of 9 companies in the region that are facing this challenge in order to help lead the way for other companies to increase their climate ambition.
