The overall picture

After two intense weeks of deliberations and negotiations, COP28 (28th Conference of the Parties to the United Nations Framework Convention on Climate Change - UNFCCC) concluded with a mixed bag of outcomes.¹

The conference achieved some notable successes, the most important being a renewed commitment to phasing out coal, enhancing adaptation finance, and bolstering efforts to address climate change in the context of food, agriculture, and water. 

However, the agreement fell short of delivering a strong enough global stocktake on the implementation of the Paris Agreement, leaving the world still off track to achieve its 1.5°C target (currently on track to 2.7°C by 2100).²

The lack of a clear signal to end the fossil fuel era was a major disappointment, and the conference's focus on adaptation (adjusting to the current and future effects of climate change) rather than mitigation (undertaking actions to prevent climate change) raised concerns about the pace of emissions reductions. 

Despite these shortcomings, COP28 did provide some momentum for further action, and it highlighted the growing recognition that climate change is a complex issue that requires a multi-pronged approach.

As the world heads towards COP29 next year, there is a renewed sense of urgency to address the climate crisis. Governments, businesses, and individuals all have their part to play in accelerating emissions reductions and building a more sustainable future.

Key takeaways

Here are some key takeaways from COP28:

• The end of the fossil fuel era is in sight: The agreement to “transition away from fossil fuels,” was important. COP28 was the first time fossil fuels had been included in a UN climate change text. Having said that, there is no definition of what this transition looks like and no timelines.³
• Adaptation finance is getting a boost: The conference saw a significant increase in pledges to support adaptation efforts, particularly in vulnerable developing countries.
• Nature has also become a firm part of this climate agreement: For the first time, the Global Biodiversity Framework and a reference to halting deforesting by 2030 are in there. This is important because this framework sets specific targets for minimising nature and biodiversity loss. 
• Food, agriculture, and water are at the forefront: The conference recognized the critical role of these sectors in climate change adaptation and mitigation. This matters as food production uses up half of the Earth’s habitable land and is responsible for 21-37% of global emissions.⁴
• The global stocktake is a wake-up call: The incomplete global stocktake underscores the need for stronger emissions reductions.

What this means for companies

Within the corporate reporting and disclosures space, companies should continue to work towards: 

• Setting emissions targets that are aligned with a net-zero pathway
• Having them validated by Science-Based Targets Initiative (SBTi)
• Providing interim five-year targets and ensure reporting back even if targets are missed 
• Following the structure of TCFD, which is also aligned with ISSB S2
• Considering their nature footprint and impacts and setting a target to minimise negative impacts
• Linking climate targets and nature impact with the wider sustainability and business strategies

More action is needed

COP28 was a step forward, but it is not enough to prevent the worst impacts of climate change. The world is at a crossroads, and the decisions made in the coming years will determine the fate of our planet. 

COP28 has shown that there is still a glimmer of hope, but it is time to translate this into concrete action. Companies that are at the forefront of this, will not only face lower risks, but also lower costs of capital and greater resilience in the long-term. 

If you need help with reporting around climate or nature and biodiversity please get in touch with Head of Business Development, Naomi Hawkins. 

1 For a glimpse into the negotiation practices, see here https://www.carbonbrief.org/interactive-tracking-negotiating-texts-at-cop28-climate-summit/

2 https://www.unep.org/news-and-stories/press-release/nations-must-go-further-current-paris-pledges-or-face-global-warming

3 https://www.euronews.com/green/2023/12/18/cop28-a-historic-outcome-but-for-whom

4 https://www.nature.com/articles/s43016-021-00225-9