In June, the G7 convened in Germany, notably to coordinate on the war in Ukraine, food security and energy transition. Other such multilateral discussions were brought to a standstill, mainly for lack of alignment on financing modalities. Such was the case of the recent COP15 on biodiversity as well as the COP27 on climate.
Nevertheless, the G7’s 3 priorities are paramount. Particularly in the face of increasing inequality, uncertainty and populism. Inflation, rising interest rates and cost of living. All destabilization factors for supply chains and territories already harshly tested during the Covid-19 crisis (now on the rise again).
These 3 priorities indeed crystallize the imperative for political, financial and economic decision-makers to combine short-term and longer-term action:
In the short term, it is obviously key to put an end to Ukraine’s human hemorrhage. This is all the more urgent as this war is closely tied to growing famine concerns in the coming summer across the Global South. Next winter, Western countries are bound to suffer from the cold.
In the longer term – and such is the new prism that underpins these 3 priorities – we must acknowledge our collective inertia around decarbonization will impact numerous collateral victims in the coming years. Consider how the war in Ukraine is tied to the reactivation of high-carbon input-laden agriculture to offset the related risks of famine as well as the reviving of coal energy to reduce Western Europe reliance on Russian gas… A rather perfect illustration of the Colombia Earth Institute's "Bressler Law" for the assessment of the human cost of carbon.
The human carbon cost of carbon will only grow the next few years. Meanwhile, early heatwaves across Europe confirmed the vital urgency of massive and rapid decarbonization. These G7 priorities ultimately encapsulate the contradictory injunctions and tensions between short and long-term issues our customers and partners are facing – along with the Ksapa community of experts around the world.
There are, however, ways to align long-term strategy and short-term operational management. With that in mind, Ksapa encourages companies and investors to explore the following 3 options:
Intelligent appropriation of the ESG frameworks undergoing standardization. In the race for speed on both sides of the Atlantic - through the initiatives led by the ISSB and EFRAG - Ksapa participates in the ongoing consultations. We systematically encourage the consideration of 3 essential subjects, which are the double materiality, the interconnection between environmental, social and governance issues, and the broad inclusion of economic sectors in the sharing of ESG data. Regardless of the directions that will emerge from these normative frameworks, these three topics are essential to ensure the credibility, legitimacy and robustness of the reading of "ESG performance" for companies and investors as well as for governments and civil society.
Careful consideration of the socio-environmental issues tied to corporate activities. That way, companies and investors may devise integrated environmental strategies (climate, water, biodiversity) while adapting to their human, social and territorial realities. Through our advisory work, we continuously revisit contradictory injunctions – around Human Rights, climate action and ESG disclosure in particular.
Engage in collaborative programs. To achieve ambitious long-term environmental goals, a range of stakeholders must be federated, who are often preoccupied with short-term social priorities. We strive to bring together as wide a range of stakeholders as possible to design and implement our value chain risk remediation solutions, for example. Ksapa similarly strives to align stakeholder agendas by identifying activities that meet short-term requirements against a longer-term vision. All this to maximize the impact, scale and sustainability of these programs.
These practical considerations are at the heart of Ksapa's activities and ecosystem. With our network of 150+ experts based in the G20 economies, Africa and Asia Pacific, we look forward to continuing this conversation in the near future.
Farid Baddache, CEO
IN THE SPOTLIGHT
Certification: What’s in it for smallholders?
In our blog this month : Certification schemes set and monitor voluntary standards pertaining to specific environmental, social or economic goals. The problem is there is considerable discrepancy, notably based on the certification type and target commodity. With that in mind, we invited our very own Christèle Delbé and Hatim Issoufaly to reflect on the use and benefits of certification programs for smallholders in this article.
What Greenland can teach us about carbon offsets
New discoveries and innovations across the world help mitigate the adverse impacts of climate change and agriculture upon one another. In this article, we invited Ksapa Community member, Charlotte Vang Gregersen, to share her expert insights into Greenland’s Glacial Rock Flour as a case in point.
Gathering the Ksapa community over music and drinks
In June, Ksapa convened its team, partners and clientele for a cocktail in Paris’ beautiful Musée de la Vie Romantique. Here we share a few highlights from the event for our extended community to share in on the fun.
