EDITORIAL

On January 27, the United States hosted a post-CP 26 meeting for leading economies to align behind key learnings and priorities ahead of COP 27. The challenges they raised together incidentally match the Ksapa roadmap. 

First off, a clear consensus emerged around the1.5°C global warming goal. Back in 2015, the Paris Accord had been content with encouraging global players to commit to 2°C “as far as possible". Now, any company or investor endeavoring to articulate their climate strategy will also need to demonstrate their ability to "significantly" reduce emissions by 2025. 

Various other challenges were also clearly identified and reiterated during the Virtual Davos Forum held on January 17-21: 

1. Janet Yellen, U.S. Secretary of the Treasury, called for a greener and more inclusive economic recovery. Sharon Burrow, Secretary General of the International Trade Union Confederation, advocated a new social contract.  

2. Actually engaging the most vulnerable workers and communities in the proposed climate transition 

3. Mobilizing finance for this greener and more inclusive economy 

The never-ending Covid-19 pandemic further reinforced inequalities and frustrations. Ksapa explored concrete solutions around these issues in open discussion with the Carter Foundation and the OECD – as part of a webinar moderated by Julie Muraco (from Ksapa's New York office). 

Finally, many financial organizations’ ESG commitments do not translate into concrete cuts to their greenhouse gas emissions. There is therefore a consensus on the urgency of reducing fossil fuel subsidies in general (and not just coal). There is likewise a resounding call to put trillions of available dollars to work towards implementing concrete programs with measurable impact. 

Achieving this agreement between countries and leaders representing the diversity of the G20 (and beyond) was not a foregone conclusion. While COP 26 was somewhat underwhelming in its conclusions, it actively supported this substantive alignment. 

Ksapa therefore draws 3 key learnings for its clients, partners and programs: 

1. Embed social justice and energy efficiency at the heart of any project. In a world faced with skills shortages, the key is for any initiative to harbor meaning – in other words address society's appetite for social justice and energy efficiency. 

2. Humanize relationships and create value throughout your professional ecosystem. In the face of confinements, social distancing, illness and isolation, what will make a real difference is organizations’ proximity and ability to create human relationships with customers and partners. Working on this revived customer experience is bound to generate a decisive competitive advantage. 

3. Giving to receive. The current inflation and rising cost of living sharply contrast with the global abundance of liquidities. As such, it is through investment a company can control costs. This means, for example, investing in suppliers’ energy transition programs to boost savings. By investing in workers, farmers and temporary laborers’ access to training, companies may similarly improve the overall quality, predictability and productivity of the services they produce or outsource. 

These activities and programs are precisely what drives Ksapa and its broader ecosystem. We look forward to continuing these discussions. 

Farid Baddache, CEO