Our industry is engaged in an important dialogue to improve sustainability through ESG transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
The 2022 United Nations Climate Change Conference (COP27), which was held last year in Egypt on November 6-20, marked the 30th anniversary of the adoption of the United Nations Framework Convention on Climate Change. In the past 30 years, the negative impacts of environmental change have made themselves virtually unignorable, forcing the world as a whole to come together and fight for the health of the planet. Slowly but surely we begin to better understand the science behind climate change and what actions or tools are needed to create a positive impact that counteracts its effects.
As part of our increasing understanding of the outcomes of climate change and its mitigation process, Environmental, Social, and Governance (ESG)criteria are becoming increasingly important. Environmental damage is no stranger to most companies and policymakers, but the great influence that social aspects have on the proper adoption of environmental actions is only beginning to unfold. One solution brought up during the COP27 conference seems to be the incorporation of Diversity, Equity, and Inclusion (DEI) management to successfully overcome our current climate crisis.
What is DEI?
Diversity: The proper representation of, and equal opportunities given to, populations underrepresented or marginalized in society. Diversity is the presence of differences that may include race, gender, religion, sexual orientation, ethnicity, nationality, socioeconomic status, language, (dis)ability, age, religious commitment, or political perspective.
Equity: The promotion of justice, impartiality, and fairness within the procedures, processes, and distribution of resources by institutions or systems.
Inclusion: The outcome of including diverse populations, making them feel welcome by inviting them to participate in all aspects of their equal rights.
Focusing on the I in DEI
The underlying message of this year’s COP27 was about taking global responsibility by considering DEI a worthy topic of conversation for the battle against climate change. National contributions and mitigation were of specific importance during this annual United Nations conference which highlighted damage, loss, and displacement as the motivating factors for creating more inclusive modes of adaptation that focus on vulnerability. COP27 shed light on the brutal fact of who’s really paying for climate loss and damage, urging developed countries to mitigate their emissions, adapt their infrastructures, and make key financial contributions to enable action in developing ones.
The goal of COP27 was to make impactful decisions that were both inclusive and productive for the acceleration of diminishing greenhouse gas (GHG) emissions. A closing statement made by the UN Secretary-General António Guterres reminds us of the importance of considering the more vulnerable link as the beginning of viable solutions: “From the beginning, this conference has been driven by two overriding themes: justice and ambition. Justice for those on the frontlines who did so little to cause the crisis – including the victims of the recent floods in Pakistan that inundated one-third of the country.”
One of the major topics focused on scaled-up adaptation efforts as well as financial plans that take into account developing countries where “transition” is still a priority. “COP27 concludes with much homework and little time. We are already halfway between the Paris Climate Agreement and the 2030 deadline. We need all hands on deck to drive justice and ambition,” Guterres added. The solution proposed was that of creating partnerships between vulnerable communities like those in the African region who are increasingly affected by the negative impacts of climate change, together with developed countries who are in a position to lead by example and lend a hand. The week of COP27 was organized with thematic days, where some sessions were specifically allocated to the solutions and challenges faced by the continent of Africa.
The financial steps of inclusive development
Diversity and inclusion are one of the essential topics to address if we are to take the reduction of GHG emissions seriously. In order to ensure a low-carbon future, the needs of vulnerable communities must be considered. The funding arrangements made in collaboration with UNFCC dedicated to loss and damage in vulnerable counties commemorate those efforts made in the COP27 conference to prompt such partnerships between developed and developing nations. By recognizing the critical role developing countries have in successfully tackling climate change, this fund becomes the first step in creating more inclusive adaptation plans that take into consideration diverse needs so that vulnerable countries have a chance in making critical contributions towards the battle against climate change. Egyptian President Abdel Fattah El-Sisi, in a show of solidarity towards Africa, stated that he believes “COP27 is an opportunity to showcase unity against an existential threat that we can only overcome through concerted action and effective implementation,” echoing the importance of adequate financial support to facilitate the needs of developing countries to meet goals set out by the Paris Agreement – especially in Africa, LDCs, and SIDS.
Future action plans should therefore include: (1) proactive and relevant adaptation methods that adhere to the opportunities or resources available to the developing countries; and (2) consider the effects climate change has on vulnerable communities. The agreements derived from COP27 remind all relevant stakeholders and government bodies that people are at the epicenter of environmental action plans – the introduction of new solutions and innovations exhibited towards climate-friendly solutions need to incorporate the “inclusion” and “diversity” existing within the social definition of ESG.
The Gender Example
If you’re still wondering how inclusivity ties into environmental issues, below is a good example of gender-relevant solutions in developing countries.
Due to the recent droughts around the world, many communities, such as the rural villages of Yemen, Iraq, and Syria, do not have access to clean water supply nearby. It’s mostly women who participate in the carting of water, which due to the droughts, now requires them to travel further from home. The inevitable damage includes missing out on education or driving families towards urban centers in the middle of political tensions, possibly costing lives. Due to the geopolitical conflicts combined with the negative impacts of climate change, many individuals are forced to flee.
Marketa Simkova, Partner and Head of People and Change at KPMG, said that “50% of the improvement in food security in developing countries came from promoting women empowerment programs in the last decade. This tells that women have a hand in being a force of change.” Investing while considering the benefits or effects on gender equality is beneficial on multiple levels, according to Jessica Robinson, MENA Sustainable Finance Leader at EY-Parthenonin. “Integrating gender into investment decision-making improves economic opportunities and contributes to securing the social well-being of women and girls”, she said. Considering how different genders are affected by climate change (especially in developing countries), is one way of ensuring the proper incorporation of DEI measures to ensure the success of global climate change action.
This single example demonstrates how the welfare security of women can positively impact the prioritization of funding. By creating a bi-conditional relationship between aiding those in need in order to receive the help that’s needed globally in turn,we know bigger steps are in the making toward reaching the goal of saving our currently burning planet.
Attention on Retention: Why Leadership Drives Successful DEI
Our industry is engaged in an important dialogue to improve sustainability through ESG transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position. Diversity, Equity, and Inclusion (DEI) have become the center of focus for employment best practices in the last decade. The ULI Global […]
