By: Sarah Franciscolo - Manager of nexos+1
At the end of June we carried out nexos+1: Latam Forum 2023, our renowned Latin American conference on corporate climate action. Although we took away many lessons learned from the experts and business cases presented at the Forum, perhaps one of the most important from my point of view is that great strides are being made around the world and in our Latin American region to formalize corporate climate action as part of the economic system.
From new standardization frameworks for climate disclosure to corporate decarbonization plans with short-, medium- and long-term goals, it is evident how climate action is becoming a core business issue., no longer an isolated program or area in the company.
Many of the leading companies that presented their experiences at the Forum highlighted adoption of the TCFD framework (Task Force for Climate-Related Financial Disclosures) to guide the integration of climate change into their strategic processes in a more standardized manner. The recently published ISSB (International Sustainability Standards Board) recommendations are also aligned with the TCFD. And in September, the TNFD (Task Force for Nature-Related Financial Disclosures) recommendations will soon be released, complementing the TCFD framework to incorporate the other side of the climate crisis coin: biodiversity loss.
We learned about clear examples of various companies that have strategic planning towards decarbonization; The companies have charted a path that begins with measuring their carbon footprint, and have first embarked on energy efficiency measures before investing in renewable energy and electrified technology. The companies talked to us about the challenge and the importance of addressing emissions in the value chain, emissions, which for many account for 80-90% of their impact. We clarify the role of offsetting residual emissions through carbon credits and how to ensure that they actually contribute to climate change mitigation.
Either by conviction and/or by global market trends, leaders are not waiting for regulation to come to advance in their decarbonization and climate management. Climate action has become a key axis for business competitiveness. At the same time, the signs of formalization and standardization of climate measurement and disclosure make us understand that regulation is coming soon.
