Page 4 - GLNG Week 46 2022

GLNG COMMENTARY GLNG

COP27 warns business

cannot be trusted to

police greenwashing

COMMENTARY The UN has identified greenwashing by business that the public, government s and investors
and finance as the biggest danger facing the race must be vigilant against misleading or confusing
to net zero, urging them to avoid a toxic cover-up claims about the green-ness or sustainability of
and to ensure that any climate pledges they keep an investment or project.
are in line with the 1.5 degree targets. The report, called Integrity Matters, slammed
The report warned that greenwashing, weak greenwashing and also weak net-zero pledges
regulation and intensive lobbying by fossil fuel and set out ways to bring integrity to net-zero
lobbies was the greatest impediment to fighting commitments by industry, financial institutions,
climate change. The business sector cannot be cities and regions and to support a global, equita-
trusted to police itself, the report said, and must ble transition to a sustainable future.
be subject to strict national and international “Using bogus ‘net-zero’ pledges to cover up
laws and regulations on green investment. massive fossil fuel expansion is reprehensible.
The report is a major wake-up call for global It is rank deception. This toxic cover-up could
finance and their ESG policies. The UN report push our world over the climate cliff. The sham
was scathing in its criticism of a whole list of must end,” Guterres
activities by business and finance that weakens
the fight against climate change, from pro-fossil Corporate responsibility
fuel lobbying by business associations to pro- The report said that while government had to
moting voluntary green investment rules that take the lead, solving the climate crisis is not
are in fact toothless, confusing and misleading. up to them alone. Non-state actors— industry,
“We must have zero tolerance for net-zero financial institutions, cities and regions —play a
greenwashing. Today’s Expert Group report critical role in getting the world to net zero no
is a how-to guide to ensure credible, account- later than 2050.
able net-zero pledges,” António Guterres said Catherine McKenna, chair of high-level
at the launch at the report at COP27 in Sharm expert group, said that the UN aimed to prevent
el-Sheikh, Egypt. dishonest climate accounting and other actions
“That means global emissions must decline designed to circumvent the need for deep decar-
by at least 45% by 2030 – and reach net zero by bonization. She called on non-state actors must
2050. Pledges should have interim targets every report publicly on their progress with verified
five years starting in 2025,” Guterres explained. information that can be compared with peers.
The targets must cover all greenhouse emis- The report made five key recommendations
sions and all their scopes. For financial institu- to businesses. Firstly, they cannot claim to be net
tions this means all of their finance activities, and zero while still investing in fossil fuels.
for businesses and cities it means all emissions Non-state actors must not buy cheap credits
– direct, indirect and those originating from that often lack integrity instead of immediately
supply chains. cutting their own emissions across their value
“The message is clear to all those managing chain.
existing voluntary initiatives – as well as CEOs, Non-state actors cannot just focus on reduc-
mayors [and] governors committing to net-zero: ing the intensity of their emissions, but must
Abide by this standard and update your guide- focus on than their absolute emissions. They
lines right away – and certainly no later than also cannot attack only a part of their emissions
COP28,” Guterres underscored. rather than their full value chain, known as
A major UN body, the UN High-Level Expert Scope 1, 2 and 3 emissions.
Group on Net-Zero Commitments of Non-State Importantly, the report said that companies
Actors, said at COP27 that honesty, probity and must stop lobbying to undermine ambitious
integrity were crucial to reaching net zero, and government climate policies either directly or

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