Letter: Companies that reduce their emissions will benefit from the advantage of the former

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News that Costco has agreed to adopt carbon reduction targets in response to a petition from its own shareholders (“A Small But Powerful Change to Force Business Climate Reform in the United States,” Moral Money, FT.com, November 19) is yet further evidence of how, according to McKinsey, net zero is now an “organizing principle” for businesses. Shareholders, consumers, activists and large asset managers are all pressuring companies to commit to reducing emissions in order to transform not only their businesses, but also their industries and markets.

When it comes to achieving net zero goals, you can do the right thing and be profitable. In fact, making bold commitments to sustainable practices helps strengthen a business and (if my business is anything to go by) increases its market share.

Until global regulations are put in place to compel all businesses to act, businesses must take swift and decisive action on their own – the stakes are too high for them to wait for the decision to take action. forced hand.

Many business leaders understand this and are already pushing for change. It is extremely important that, along with climate change activists, it is the companies that pushed for more action after the COP26 agreements were watered down.

What is critical here for the private sector is that net zero goals can no longer be tangential to business goals. There are a number of things businesses can do to reduce emissions. For example, increasing energy efficiency labels and increasing product efficiency around the world can have a huge impact.

Four household appliances (refrigerators, air conditioners, motors and lighting) account for 40% of global energy consumption.

John Denton, secretary general of the International Chamber of Commerce, said a “concerted effort” would be needed over the next few months to adhere to the goals of limiting global warming to 1.5 ° C. This concerted effort is underway, businesses are starting to scale up and this is only the beginning – others will follow suit in the near future. The business world is emerging as a sustainability driven ecosystem and the gift for early adopters will be survival.

Hakan Bulgurlu
Managing Director, Arcelik
Istanbul, Turkey


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