\nCoalition chief executive. Photo \/ Dean Purcell.<\/p>\n
\u201cIn fact, that\u2019s one of our biggest problems. Often we want to celebrate companies that are doing really exciting things. They kind of look at us and say, \u2018I don\u2019t want to make a big deal of it,\u2019 when we actually want to celebrate it because it inspires others.\u201d<\/p>\n
The coalition aims to do five-yearly snapshots charting emissions reduction progress within the membership and will publish its latest report later this year.<\/p>\n
Its 2023 snapshot showed coalition signatories had collectively reduced their emissions by 3.6 million tonnes since joining. This amounted to a 25% reduction for those in the group since its 2018 founding, Burrell says.<\/p>\n
\u201cWe\u2019ll see how they\u2019re going (in a new report this month) but my overall comment would be that despite some of the rhetoric we see globally, despite the US signalling it\u2019s going to pull out of the Paris Agreement, and despite some of the policy changes we\u2019ve seen over the past few months, which might indicate things are slowing down … what we\u2019re seeing with our members is that the investments they started committing to a few years ago are now coming through in practical actions.\u201d<\/p>\n
Mike Burrell, New Zealand Climate Leaders Coalition.
\nCoalition chief executive. Photo \/ Dean Purcell.<\/p>\n
The Paris Agreement is a legally binding international treaty on climate change adopted in 2015 at the COP21 conference in Paris, with the goal of limiting global warming to well below 2C, preferably to 1.5C, compared to pre-industrial levels. It requires all countries to set targets to reduce their greenhouse gas emissions.<\/p>\n
To limit global warming to 1.5C, greenhouse gas emissions must peak before 2025 at the latest and decline 43% by 2030.<\/p>\n
Burrell said examples of progress were dairy company Fonterra\u2019s steady conversion of coal-fired boilers to biomass, Waste Management\u2019s conversion of its diesel trucks to electric vehicles, which have now clocked more than two million kilometres and conversion is ongoing, and KiwiRail, with its new lower emission locomotives and replacement of diesel shunters to electric.\u201d<\/p>\n
I think it helps that we\u2019ve got a very strong primary sector that is very pragmatic … people say \u2018actually this is very doable\u2019 and just go and do it. They don\u2019t want to make a big deal out of it.<\/p>\n
Mike Burrell<\/p>\n
The Energy Efficiency and Conservation Authority (EECA) was delivering the Government\u2019s new solar power on farms initiative, and banks such as ANZ, Westpac and ASB were providing hundreds of millions of dollars in sustainability-linked loans.<\/p>\n
\u201cThese are all really big investments and long-term capital purchases they\u2019re making over time. They\u2019re locked into those.\u201d<\/p>\n
Burrell says the new snapshot statement published later this month will show a very clear commitment to the Paris Treaty ambitions.<\/p>\n
In addition, the coalition\u2019s next statement of ambition will be \u201cvery, very realistic\u201d in terms of pathways different sectors will need to get there, he says.<\/p>\n
\u201cWe\u2019re following science-based targets where they exist and where they don\u2019t, we\u2019re asking our members to show international leadership. We\u2019ve gone back and made sure there\u2019s no gap between the commitments that CLC (the coalition) is making and the ability of signatories to be able to meet those commitments.<\/p>\n
\u201cBecause one of the things we\u2019ve observed internationally is that companies and organisations that back away from their commitments generally are those that haven\u2019t actually worked through the practical steps of how they would get there.<\/p>\n
\u201cPerhaps it\u2019s not as bold and sexy as making graphic promises, but what we\u2019re saying is we\u2019ve made our promise, which was net zero (emissions by 2050). Now we have to show practically, step by step, company by company, year by year, how we\u2019re going to get there.\u201d<\/p>\n
Burrell says the key for New Zealand through the zero emissions process is \u201cbeing really specific and realistic about it\u201d.<\/p>\n
\u201cIt\u2019s one thing to make a commitment. It\u2019s easy to turn up to international conferences and make commitments, but the secret is getting down to the nuts and bolts of how you do it.<\/p>\n
\u201cWhat kind of investment it requires, over what time frames, and how you make it viable.<\/p>\n
\u201cThat\u2019s where the CLC has been really good because got a group of climate CEOs that are leading out on this thing and can say \u2018well, actually, this is not terribly hard, this is how you do it\u2019<\/p>\n
\u201cThat\u2019s inspirational but it\u2019s also pragmatism.\u201d<\/p>\n
No time to backpedal<\/p>\n
Global markets haven\u2019t softened their climate and sustainability expectations \u2013 only New Zealand has, says Sustainable Business Network founder Rachel Brown.<\/p>\n
\u201cWhile New Zealand has rolled back several climate requirements, our major trading partners have not. The rest of the world is still tightening climate and sustainability expectations, and exporters will increasingly need to demonstrate climate performance to stay competitive,\u201d Brown says.<\/p>\n
In fact, global rules are tightening.<\/p>\n
The EU\u2019s Carbon Border Adjustment Mechanism enters full operation next year, meaning New Zealand exporters will need credible emissions data, Brown says.<\/p>\n
Rachel Brown, founder Sustainable Business Network<\/p>\n
\u201cAround 90% of the world\u2019s largest corporates continue to report sustainability information \u2013 buyers still expect transparency. Financial institutions representing $130 trillion remain committed to net-zero through GFANZ (Glasgow Financial Alliance for Net Zero).\u201d<\/p>\n
GFANZ is an independent, private financial sector initiative which aims to mobilise capital and remove barriers to investment in the global transition to net zero emissions.<\/p>\n
Brown also notes China is strengthening ESG disclosure requirements for companies engaged in trade from next year.<\/p>\n
New Zealand\u2019s policy reversals and recent softenings are affecting market behaviour, Brown says.<\/p>\n
\u201cWe\u2019re seeing real-time shifts in business and household decisions as incentives and guidance change.<\/p>\n
\u201cEV registrations dropped sharply after the Clean Car Discount ended, highlighting how important incentives are, especially for middle-income households.<\/p>\n
\u201cThere is a noticeable drop in visible engagement from corporate sustainability leaders … public statements and leadership signals have clearly softened.<\/p>\n
\u201cI believe that leaders\/people are responding to the anti-woke messaging in New Zealand.\u201d<\/p>\n
Brown says EECA programme funding has been cut and reprioritised, reducing support for business decarbonisation, while the loss of Government funds has had a major slowdown effect on energy investment.<\/p>\n