In the document, the companies list actions to reduce carbon emissions and highlight Brazil's fundamental role in the next Climate Conference, in November
A group of more than 100 companies and 10 sectoral entities launches today, September 27, 2021, the document “Entrepreneurs for the Climate”, in which they defend measures for a low-carbon economy and assume responsibility for this transformation. This is the position that will be taken by the sector to the next Climate Conference, COP 26, which takes place in November, in Glasgow (Scotland).
The initiative was led by CEBDS (Brazilian Business Council for Sustainable Development), in partnership with other entities in the sector. The Council represents around 80 business groups operating in Brazil, responsible for 47% of Brazilian GDP and 1.1 million jobs; 13 of the 15 largest companies by market value in the country are members.
The document was signed by CEBDS affiliates and also by non-member companies, demonstrating the relevance of the subject. The list of signatories includes sectors such as agribusiness, food, aviation, electrical, pharmaceutical, finance, infrastructure, logistics, paper and cellulose, petrochemicals, health, technology, telephone and retail. Of these 107 companies, 46 publish financial results, with a combined net revenue of R$ 951 billion in 2019.
These companies have already been adopting measures to reduce and offset greenhouse gas (GHG) emissions, internal carbon pricing, decarbonization of operations and value chains and establishing ambitious climate neutrality goals by 2050. In other words, These companies have already applied practices to transform their operations and reduce their impacts on global warming.
Among the measures proposed in the document “Entrepreneurs for the Climate”, support for the proposal for a regulated carbon market in Brazil stands out. A study developed by CEBDS shows that this market can reach between R$ 200 million and R$ 300 million in its initial phase (2022-2024), with transactions of emission rights and carbon credits.
The topic is under discussion in the National Congress and the private sector would like to see the initiative approved before the United Nations Climate Change Conference (COP 26). The regulated market can work in parallel to the creation of a voluntary market registration mechanism, with both coexisting and credits from the voluntary market being able to be used in part in the regulated system.
A rapid transition to a low-carbon economy is possible and desired by the business sector, as Brazil can even bring forward its goal of reducing greenhouse gas emissions. A study supported by CEBDS shows that the country can reduce these emissions by up to 42% in 2025, compared to 2005 levels. The Brazilian government's commitment is to reduce 43% by 2030.
“Not only do we know how to combat climate change, we already have the solutions. The Brazilian business sector has adopted concrete corporate actions, such as the internal carbon price and neutralization targets, as well as leading public climate policy initiatives with market instruments and social inclusion. COP 26 will be an opportunity to share this commitment and reinforce our global engagement”, highlights the president of CEBDS, Marina Grossi.
An example of an initiative applied by the sector is control over climate, environmental and social risks. This work identifies the impacts generated by companies' operations, allowing them to adjust their processes and take advantage of opportunities created by the transition to more sustainable models. CEBDS trained its members for this control, based on the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD).
This training ended up anticipating the recently launched regulation by the Central Bank of Brazil on climate, environmental and social risks. The BC determined that banks should consider these impacts from 2023 onwards when analyzing their operations. Companies that sign the positioning are already ahead in this regard.
Business mobilization
The mobilization for signatures was promoted through an initiative by the CEBDS Council of Leaders – a group that, since 2015, has brought together CEOs and senior executives from member companies to share their vision on climate change with public authorities and society.
Ten large business entities also signed the document and contributed to attracting companies to the commitment: Abag (Brazilian Agribusiness Association); Abal (Brazilian Aluminum Association); Abdib (Brazilian Association of Infrastructure and Basic Industries); Abimaq/Sindimaq (Brazilian Association and National Union of the Machinery and Equipment Industry); Amcham Brazil (American Chamber of Commerce in Brazil); CDP; Cebri (Brazilian Center for International Relations); ICC Brazil (International Chamber of Commerce); Urbem Institute; and IPGC (Institute of City Planning and Management).
The group of signatories assesses that Brazil has unique comparative advantages in the race to achieve a net carbon neutral emissions economy. To achieve this, the country needs a political-regulatory framework that supports this trajectory within a firm commitment, with effective actions to end illegal deforestation and environmental conservation.
“We have climate ambition and our companies increasingly rely on science-based neutralization targets, using careful corporate, social and environmental governance (ESG) parameters”, highlights the president of CEBDS. Marina Grossi also details paths for the country: “By 2030, we must prioritize the end of illegal deforestation, the operationalization of a system of carbon markets and the expansion of low-carbon agriculture, resulting in increased ambition in Brazilian goals”.
The document will be delivered to Brazilian authorities involved in the agenda to combat climate change. The text was previously presented to the president of COP 26, Alok Sharma, during a visit to Brazil in August, to reinforce the business sector's commitment to neutralizing emissions.
Check the positioning with the signatures of companies and entities: https://cebds.org/publicacoes/posicionamento-empresarios-pelo-clima/#.YUtB4rhKjIU.
About CEBDS
The Brazilian Business Council for Sustainable Development (CEBDS) is a non-profit civil association that promotes sustainable development through coordination with governments and civil society, in addition to disseminating the most current concepts and practices on the topic. Founded in 1997, it brings together around 80 of the largest business groups in the country, responsible for 47% of Brazilian GDP and 1.1 million jobs; 13 of the 15 largest companies by market value in the country are members. It represents the World Business Council for Sustainable Development (WBCSD) network in Brazil, which has almost 60 national and regional councils in 36 countries and 22 industrial sectors, in addition to 200 business groups operating on all continents.
CEBDS's participation in COP 26 has the support of the companies Bayer, Bradesco, BRF, JBS, Microsoft, Natura, Neoenergia and Vale. More information at https://cebds.org.
