“If left unchecked- climate change could cost the global economy USD178 trillion over the next 50 years, or a 7.6% cut to global gross domestic product (GDP) in the year 2070 alone. If global warming reaches around 3°C toward the century’s end, the toll on human lives could be significant—disproportionately impacting the most vulnerable and leading to loss of productivity and employment, food and water scarcity, worsening health and well-being, and ushering in an overall lower standard of living globally,” reads the latest report of Deloitte Center for Sustainable Progress (DCSP), which was released during the World Economic Forum’s annual meeting.
Based on extensive research and analyses of 15 geographies in Asia Pacific, Europe, and the Americas, Deloitte’s Global Turning Point Report shows that unless global leaders come together and figure out a systemic approach to reach net zero carbon emission, the results could turn out to be catastrophic.
The Intergovernmental Panel on Climate Change (IPCC) report released in 2021 clearly states “a code red for humanity”. It projected that cases like flooding in China and Europe, wildfires in the Mediterranean and the US as well as extreme heatwaves in the Pacific Northwest of North America, will take severe shape in future if we do not take timely actions, when we can. It also reveals a huge gap between actions and ambitions set by the organizations and government entities.
Besides, the report also details four key stages for decarbonization globally:
1. The public and private sectors unite, collaborating to build effective and foundational frameworks and policies to drive actionable change.
2. Business and governmental leaders make significant investment, sparking structural changes to the global economy that prioritize low-emissions industries and accelerate the transition to net-zero.
3. The world’s geographies approach their respective “turning points”—when the benefits of a net-zero transition begin to outweigh the costs—and ultimately drive regional net-positive growth and value.
4. Following the turning point, society realizes a greener future—where interconnected, low-carbon systems underpin a clean economy that grows at an increasingly faster rate than its carbon-intensive alternative.
Implementing stricter rules, keeping a check on carbon emissions and developing new action plans will not be enough because the threshold to be careful has been crossed. “While no one person or entity can tackle climate change alone, business leaders have a platform to support their own organizations’ climate transformation efforts, engage their employees in meaningful action, and advocate for external organizations’ taking steps to fight climate change, and collaborate and innovate on sustainability solutions across industries and disciplines. Moreover, CxOs are well positioned to advocate for change: Our research found that CxOs appear to show much higher perception of and concern for climate change than the general public,” states Punit Renjen, Deloitte Global CEO in a letter.
While many startups have mushroomed in the last couple of years, around the globe, with their innovative ideas and many big organizations have also adopted measures to as well as technologies to reduce carbon emissions, yet the result is far from satisfactory level. Addressing the problem from societal point of view and customize solutions according to those in the grassroot level, by bringing in awareness, educating the mass to look for alternative resources and encouraging sustainable way of living might bring in the desired change.
“Senior leader concern and optimism about climate have increased significantly over the past few months. However, there are multiple disconnects between CxOs’ opinions and motivations, the actions they’re taking, and the impact they’re having. Lessons can be learned from a small group of leading organizations,” he adds.
“It’s important that the global economy evolves to meet the challenges of climate change,” said Dr. Pradeep Philip, Deloitte Economics Institute. “Our analysis shows that a low-carbon future is not only a societal imperative but an economic one. We already have the technologies, business models, and policy approaches to simultaneously combat the climate crisis and unlock significant economic growth, but we need governments, businesses, and communities globally to align on a pathway toward a net-zero future.”
“In order to find new and lasting solutions to these societal challenges, we must model new forms of cooperation and pursue a multi-party, holistic approach. The Turning Point analysis lays a powerful foundation of economic benefit and growth for decision-makers, influencers and participants to work from for individual and shared prosperity,” said Prof. Dr. Bernhard Lorentz, founding chair of the DCSP and Deloitte Global Consulting Sustainability & Climate Strategy leader.
