Podcast Summary: Der Große Neustart – "We Mean Business Coalition: A Decade of Driving Climate Action"

Podcast Information:

• Title: Der Große Neustart
• Host/Author: Sibylle Barden, Publizistin
• Description: Exploring Revolutionary Ideas to Transform Our World
• Episode Title: We Mean Business Coalition: A Decade of Driving Climate Action
• Release Date: September 11, 2024

Introduction

In this compelling episode of Der Große Neustart, Sibylle Barden engages in an insightful conversation with Maria Mendelous, the Chief Executive Officer of the We Mean Business Coalition. Recently named one of Time's 100 Most Influential Climate Leaders in Business, Maria brings over 25 years of experience in sustainable development, energy, and climate action. The discussion delves into the Coalition's significant achievements over the past decade, the importance of radical collaboration, the evolving landscape of corporate climate leadership, and the challenges that lie ahead in the fight against climate change.

1. The Vision and Evolution of the We Mean Business Coalition

Timestamp: [01:55]

Maria Mendelous begins by reminiscing about the inception of the We Mean Business Coalition in 2014, a period marked by the absence of decisive climate action prior to the Paris Agreement. The Coalition was founded with a clear vision: to unite the power of business to accelerate global climate action. Initially, the goal was to create a collective voice for the private sector to advocate for more ambitious climate policies at the COP21 in Paris.

"Within the first year of the Coalition, we saw the success of the Paris Agreement. And over the past decade, this vision has evolved in response to the growing needs of climate and nature to respond to the crisis." ([01:55])

Over ten years, the Coalition expanded its focus from mere advocacy to actively supporting businesses in transitioning to a net-zero economy. This evolution includes initiatives such as setting science-based targets, decarbonizing supply chains, investing in nature, and engaging in policy advocacy. Maria emphasizes the pivotal role the Coalition plays in ensuring businesses not only commit to climate goals but also achieve them inclusively and resiliently.

2. Significant Achievements Over the Decade

Timestamp: [05:20]

Maria highlights several landmark achievements:

• Paris Agreement: The Coalition's advocacy was instrumental in the formation of the Paris Agreement. Maria recalls how former CEO Cristian La Figueres acknowledged the Coalition's role in pushing for ambitious climate agreements.

  "The voice of progressive business at that time was fundamental for governments to go ahead and sign the most ambitious climate agreement." ([05:20])

• Shift to 1.5 Degrees: In 2018, the Coalition was the first to advocate for maintaining the 1.5 degrees Celsius target, challenging the previous 2-degree goal. This shift emphasized the urgency of more ambitious climate action.

• COP28 Influences: The Coalition's persistent efforts led to significant climate commitments at COP28 in Dubai, including the global agreement to transition away from all fossil fuels.

  "We were the first organization to say, 'We need to phase out fossil fuels.'... We're very proud of this. We were the first organization to say, vasta, we need to phase out fossil fuels." ([07:56])

These milestones underscore the Coalition's role in shaping global climate policies and pushing for more stringent emission reduction targets.

3. The Importance of Collaboration and Partnerships

Timestamp: [09:34]

Maria underscores that the Coalition's success is deeply rooted in its collaborative approach. With seven founding partners and over 80 additional organizations, the Coalition leverages diverse expertise to drive systemic change.

"We're working with leading companies so that they show that it is possible. Other companies follow governments, listen, and then they put in place policies that will allow this to be implemented by the large majority of businesses." ([08:30])

Key partners include:

• CDP: Focused on emissions accounting and disclosure.
• BSR and WBCSD: Specializing in sustainable development and leadership.
• Series B Team and Cambridge Leaders Group: Advocacy and policy change.
• Climate Group: Promoting renewables and electric vehicles.

Additionally, strategic partnerships with the Science Based Targets Initiative and B Lab amplify the Coalition's impact. Maria emphasizes the power of collective action, stating, "It's about working together to create this smartest thing together." ([10:11])

4. Corporate Climate Leadership: The 4 A’s

Timestamp: [13:27]

Maria introduces the Coalition's framework for corporate climate leadership, encapsulated in the 4 A’s:

1. Ambition: Companies must first understand and measure their carbon footprint across Scope 1, Scope 2, and Scope 3 emissions.

   "First companies need to understand the footprint, okay? So they need to do some calculations and say, okay, this is my footprint." ([13:27])

2. Action: Setting science-based targets to guide emission reductions. For large companies, this involves adhering to frameworks like SBTi, while SMEs are directed to the SME Climate Hub.

   "You should set a target... Then you just need to move to action."

3. Advocacy: Engaging with policymakers to push for ambitious and investable climate policies. This ensures that government actions are aligned with business commitments.

   "We bring the business voice... to advocate for the policy change that is needed."

4. Accountability: Reporting progress transparently, ensuring that companies remain committed to their climate goals and policies.

   "Companies need to be consistent in how they talk to policymakers... We call on governments to be coherent. So business need to also be coherent." ([16:10])

5. Challenges in Corporate Climate Action

Timestamp: [27:06]

Despite significant progress, Maria identifies several barriers:

• Measurement Difficulties: Accurately measuring emissions, especially Scope 3, remains complex.

  "It's very difficult to do them. It is also very difficult to have a good understanding of your footprint as a company." ([17:52])

• Learning Curves and New Standards: Establishing standardized reporting frameworks akin to financial statements is a lengthy and challenging process.

  "It's like the financial statements. It took, I think, about 100 years to do them and we want to do environmental standards in 10 years or 20 years." ([17:52])

• Policy Alignment: Ensuring consistency between corporate targets and government policies is crucial but often lacking.

  "We need clear rules, policies, incentives, carbon pricing, removal of subsidies to fossil fuel... So I think those are key ingredients for success." ([54:06])

6. Engagement with Sustainability Standards

Timestamp: [16:26]

The Coalition actively supports the International Sustainability Standards Board (ISSB), striving for a unified global baseline for emission reporting. This alignment ensures that companies can report emissions consistently across different geographies, facilitating comparability and transparency.

"It's important to have a global baseline, something that at least all governments, all countries will apply to, so that then companies can report emissions in a similar way in different geographies and then it can be comparable." ([16:26])

7. Personal Ambition and Leadership in Climate Action

Timestamp: [23:39]

Maria shares her personal journey into climate leadership, driven by a strong belief in the power of business to drive positive change and a deep sense of responsibility.

"I have a strong belief on the power of business to drive positive change. And both there and now at the Coalition, you know, this is what we are driving for and empowering." ([24:10])

Her resilience and commitment are pivotal in navigating the ongoing challenges of climate action, as she reflects on the progress made and the work that still lies ahead.

8. Barriers to Change: Case of the Automotive Industry

Timestamp: [27:06] - [36:56]

Using the automotive industry as a case study, Maria discusses the contrasting approaches of European and Chinese manufacturers:

• European Industry Challenges:

  • Regulatory Focus: Europe's approach has heavily relied on regulation and setting targets, which Maria argues has led to slower progress.

    "The European industry has not had the support from the governments that the Chinese have given to their industries." ([33:33])

  • Permitting and Infrastructure: Lengthy permitting processes and insufficient charging infrastructure hinder the adoption of electric vehicles (EVs).

    "Permitting is a huge issue. It takes three, four years to put... That's unacceptable." ([29:06])

• Chinese Industry Success:

  • Comprehensive Support: China has effectively combined regulation with incentives ("carrots"), fostering a robust EV market.

    "China is not anymore the one that was coping... it took it seriously." ([34:16])

  • Competitive Markets: Chinese EVs are becoming more competitive, reliable, and affordable, setting a benchmark for global markets.

    "They are cheaper, more competitive, more reliable, fantastic batteries." ([00:00] Maria Mendelous earlier in the transcript, likely a repeated point.)

Maria suggests that Europe can learn from China's integrated approach to industry support and infrastructure development.

9. The Role of Emerging Technologies

Timestamp: [38:04] - [40:47]

Maria acknowledges the dual-edged nature of emerging technologies like AI and blockchain:

• Positive Impacts:

  • Efficiency and Emissions Tracking: AI can optimize operations, track emissions, and find innovative solutions to reduce carbon footprints.

    "The power of AI to track emissions and also to disseminate location and ways of solving problems is so powerful and so important for climate." ([39:03])

• Concerns:

  • Energy Consumption: The substantial energy requirements of technologies like AI pose challenges for sustainability.

    "I'm a little bit worried about the amount of energy they consume... they require a lot of energy as well." ([39:03])

Maria emphasizes the need for the industry to balance technological advancement with energy efficiency and decarbonization.

10. Future Climate Conferences and Expectations

Timestamp: [41:04]

Looking ahead to upcoming climate events, Maria shares her expectations:

• Climate Week and COP29: Held in Baku, COP29 faces challenges due to its sudden organization and concurrent geopolitical events, such as the US elections.

  "I'm convinced that Brazil is going to do a fantastic job for setting an NDC at the ambition level." ([41:04])

• COP30 Significance: The next COP will be crucial for presenting more mature and ambitious Nationally Determined Contributions (NDCs), essential for aligning with the 1.5-degree target.

  "Next year the COP30 is really important because that's when the new NDCs are presented... fossil fuel phase-out dates." ([41:04])

Maria stresses the importance of coherent policy frameworks that include clear fossil fuel transition plans and investments in nature.

11. Transition from Fossil Fuels to Clean Energy

Timestamp: [44:21] - [48:16]

Maria outlines the Coalition's campaigns aimed at accelerating the transition from fossil fuels to clean energy:

• Fossil to Clean Campaign: Advocates for a systematic shift away from fossil fuels by creating actionable plans for companies to reduce their dependency.

  "If you are a company that is demanding fossil fuels, you need to create a plan on how you're going to stop consuming them and replace them by clean sources from now until 2040." ([45:13])

• Investment Shifts: Encourages investors to prioritize clean energy over fossil fuels, highlighting the current imbalance in investment ratios.

  "We invest 2 million on renewables and one... It needs to be according to, I think the AAA is 4 to 1." ([48:16])

• Developing Countries' Challenges: Emphasizes the need for financing large infrastructures in developing nations, reducing country risk premiums to enable clean energy investments.

  "If this big fashion company is asking, 'Can you help me do it?'... It's not easy." ([30:38])

Maria acknowledges that while demand-side initiatives are crucial, systemic changes in investment and infrastructure are equally important, especially in regions heavily reliant on fossil fuels.

12. The Role of Media in Climate Action

Timestamp: [50:45] - [53:38]

Maria criticizes mainstream media's focus on corporate greenwashing rather than highlighting genuine climate action efforts.

"Some of the headlines focus more on greenwashing of companies than actually on what companies are doing." ([51:41])

She advocates for a shift in media narrative to emphasize companies making real commitments and to spotlight the millions of businesses still lagging in climate action.

"Instead of focusing on those that are doing something but not doing it perfectly... focus on putting pressure on the laggards, on those that are not doing anything." ([53:38])

13. Looking Beyond 2030: Inclusion and Ambition

Timestamp: [54:06] - [55:55]

For sustained climate progress beyond 2030, Maria identifies several key areas:

• Alignment Across Sectors: Ensuring coherence between central and local governments, and across different industries.

  "More alignment across the different boats so that we go in the same direction." ([54:06])

• Simplifying Communication: Making complex climate messages accessible to the broader public to foster understanding and support.

  "Let's also simplify the message so that people can understand the complexity in ways that they can understand." ([54:06])

• Increasing Ambition and Clear Rules: Establishing definitive policies and clear regulations to guide and motivate businesses toward more ambitious climate goals.

14. Advice for SMEs

Timestamp: [55:55] - [57:21]

Maria provides practical steps for small and medium-sized enterprises (SMEs) looking to embark on their climate action journey:

1. Measure Emissions: Utilize available calculators and educational tools to understand your carbon footprint.

   "First, try to measure your emissions. There's plenty of calculators out there now." ([55:55])

2. Engage with Peers: Collaborate with other businesses and clients to identify needs and opportunities for emission reductions.

   "Talk to your peers and talk to your clients to see what they need and to adapt and do the numbers." ([55:55])

3. Raise Your Voice: Advocate for climate action within your network, fostering peer pressure and support.

   "Raise your voice, talk to others, explain and become an advocate and mobilize others to do the same." ([55:55])

Maria emphasizes that collective action is essential, urging SMEs to integrate sustainability into their operations and leverage peer networks for greater impact.

15. Road Ahead: Short-term and Long-term Perspectives

Timestamp: [57:21] - [60:23]

Maria outlines the Coalition's future trajectory, highlighting key messages and the inevitability of continued climate action momentum:

• Responsibility: Every business bears the duty to reduce harm and embrace sustainability.

  "Every business has the responsibility to do less harm, to reduce emissions and to other things also in relation to sustainability." ([57:21])

• Opportunity: The decreasing costs of renewable energy and electric vehicles present competitive advantages for early adopters.

  "Reduction of cost of renewable energy, of electric vehicles, of batteries... make the transition very competitive." ([57:21])

• Risk: The consequences of inaction are dire, impacting employees, communities, and global stability.

  "The risk of not doing anything is enormous. The impact that this is going to have on your employees, on your families, on the communities where you operate, on migration, it's enormous." ([57:21])

Looking ahead, Maria remains optimistic despite acknowledging the challenges. She believes the direction towards sustainability is clear and inevitable, emphasizing that early and authentic participation will unlock innovation and new business opportunities.

"The sooner companies join the boat, the better. And that will then unlock an incredible wave of innovation and new business opportunity." ([57:21])

Closing Remarks

In her concluding statements, Maria passionately urges for widespread collaboration and the amplification of positive climate actions.

"Let's make the positive voice be heard widely across the world because we need everybody on this journey." ([60:23])

She expresses gratitude towards the podcast for providing a platform to share the Coalition's mission and reiterates the importance of collective effort in achieving a sustainable future.

Conclusion

This episode of Der Große Neustart offers a comprehensive overview of the We Mean Business Coalition's decade-long journey in driving climate action. Through Maria Mendelous's insights, listeners gain an understanding of the critical role of business collaboration, the challenges in measuring and achieving emission reductions, and the strategies necessary for a sustainable transition. The conversation underscores the urgency of collective responsibility, the opportunities presented by emerging technologies, and the importance of aligning corporate actions with robust policy frameworks. As the world grapples with escalating climate emergencies, the Coalition's mission serves as a beacon for transformative and inclusive climate leadership.