Between 2019 and 2022, the Alliance of CEO Climate Leaders made significant strides in environmental sustainability, achieving a notable 10% reduction in their overall emissions. Established in conjunction with the signing of the Paris Agreement, this alliance stands as the premier global consortium of CEOs championing the drive towards net-zero emissions. The group represents an impressive assembly of $4 trillion in combined revenues and 12 million employees spread across a diverse array of 12 sectors such as healthcare, retail, heavy industry, and agriculture.

“Bold and decisive leadership is needed to accelerate the net-zero, nature-positive transitions,” said Gim Huay Neo, Managing Director, World Economic Forum. “Over the last three years, the Alliance of CEO Climate Leaders has successfully cut 10% of its aggregate emissions – equivalent to the annual emissions of France – while growing revenue ahead of global GDP growth and delivering significant value for their stakeholders. This clearly demonstrates that positive climate action does not have to come at the expense of economic performance”.

Over the same period, the alliance not only reduced emissions but also saw their collective revenues climb by 18%, amounting to an increase of over $640 million—outpacing the global GDP growth rate of 15%. This revenue growth occurred concurrently with a substantial decrease in emissions across all three defined scopes, totaling a reduction equivalent to 450 megatons. This figure mirrors the yearly emissions outputs of nations like France or the United Kingdom.

“This is clear evidence of the value of membership in this type of alliance,” said Feike Sijbesma, Chair of the Supervisory Board of Royal Philips and founding Co-Chair of the Alliance of CEO Climate Leaders. “The results prove that green growth is not just an idea for the future but a real value driver today. Moreover, they highlight the benefits of collaborative action for front-runners like the alliance members who are committed to driving real-world change. Our members continue to work together, sharing knowledge and learning from each other’s transition efforts – which has helped us to achieve this remarkable value creation with simultaneous emissions reductions.”

The emissions reductions were largely due to the alliance members’ unified efforts to tackle all three emissions scopes, with particular emphasis on Scope 3 emissions, which constitute more than 85% of their combined emissions footprint. In 2023 alone, there was a 19% increase in the number of members taking action against Scope 3 upstream emissions. This included integrating sustainability criteria into procurement processes, aiding suppliers in emissions measurement and reduction, and participating in financial initiatives like paying green premiums. Moreover, efforts to address Scope 3 downstream emissions saw a 12% increase, with strategies such as sustainable product design and collaborations with clients to manage lifecycle emissions.

“The alliance is showing that businesses can collectively make significant progress towards implementing the goals of the Paris Agreement,” said Sumant Sinha, Chairman and CEO of ReNew and Co-Chair of the Alliance of CEO Climate Leaders. “This group of 131 CEOs of the global Alliance comprises some of the largest companies across 27 countries, who are demonstrating that the economics of climate action can work in all regions – from emerging markets to developed economies. We hope these results encourage more businesses to join us in applying their knowledge and skills to transition to a truly global, net-zero economy that benefits communities all around the world.”

Remarkably, the 10% cut in absolute emissions by the alliance surpasses the emissions reduction efforts of some of the world’s largest economies and emitters. For example, during the same period, the United States and the European Union reported reductions of 2% and 3% respectively, while both India and China experienced emissions growth of 6% and 7%. The alliance’s achievements also exceed the targets set by the Science-Based Targets initiative, which calls for a 42% reduction in Scope 1 and 2 emissions and a 25% cut in Scope 3 emissions between 2020 and 2030.

This consortium exemplifies how collaborative leadership can significantly advance sustainability goals aligned with all 17 Sustainable Development Goals, demonstrating profound impacts on climate action and economic prosperity.

The post Alliance of CEO Climate Leaders Surpasses Global Emissions Reduction Goals with a 10% Cut in Three Years While Boosting Revenue Growth appeared first on Travel And Tour World.