Zelal Aktas

The Role of the Private Sector in Driving Decarbonization

May 31 2022 | 3 MINS READ


fields with bales of hay and green hills in the background

“The time for debate is over. We need swift, bold, and widespread action now—across all sectors,”

Deloitte Global CEO Punit Renjen. 

We share his perspective here at goodcarbon. Aligning globally provides us with a chance to invest in a sustainable, resilient, and equitable future. However, we must first unite as the private and public sectors. If business and state leaders make a significant investment, we can incentivize structural changes to the global economy and drive decarbonization. Our aim is realizing a society with a greener future, where interconnected, low-carbon systems underpin a clean economy, that grows at an increasingly faster rate than its carbon-intensive alternative.

While in the public sphere nation states must approach their respective “turning points” and drive regional net-positive growth. The private sphere can also do their part in driving decarbonization and making a positive change for the environment.

Here Are 3 Ways the Private Sector Can Drive Decarbonization

  1. Calculating emissions, including scope 3 emissions to set real, science-based reduction targets. Aligning with initiatives like the SBTi to support target setting and communicating your company’s efforts will promote transparency and set an example to incentivize action within the private sector.
  2. Transforming business practices by shifting to green energy, promoting recycling and educating employees on green practices, such as reducing food waste, or cycle to work schemes. By introducing greener practices, companies can propel the reduction of their carbon footprint and drive decarbonization.
  3. Supporting green by investing in Nature-based Solutions (NbS), connecting with funds, and supporting NbS projects with high-impact. Not only can NbS support businesses in achieving their net-zero targets but can also support us in reaching 37% of our global targets set by the Paris Agreement.

While our messages are geared towards businesses, we encourage all to implement these suggestions, as ignoring the climate crisis it could cost our global economy US$178 trillion over the next 50 years. In stark contrast, if we work together aligning globally and embracing a net-zero transition, we could see five-decade gains of US$43 trillion. As Deloitte has emphasized: we must act now in order to prevent further economic and environmental losses. Nature-based Solutions (NbS) are a science-backed, proven method of climate action. Investing in NbS not only supports companies in reaching their net-zero transitions, but also sets them apart from competition and positions them as progressive leaders with established track records.

So, let’s act together and act now in order to achieve net-zero and create a greener future.