Addressing Triple Short-Termism to Advance Climate Action

Connie Hedegaard stresses the urgent need for decisive climate action amidst a trend of short-termism that hinders progress. A growing disconnect between urgency and action is evident, notably in businesses retracting climate goals and inadequate government responses. Comprehensive collaboration across sectors would facilitate vital sustainability transformations, fostering economic growth and resilience against climate risks while addressing immediate needs responsibly.

In her advocacy for climate action, Connie Hedegaard, a former European commissioner and member of the Council on Sustainability Transformation, highlights an urgent need for organisations to take decisive actions to tackle the climate emergency. Currently, there is a lack of influential organisations demonstrating the necessary behaviours, as governments often find themselves facing a falsified dichotomy between defence spending and climate initiatives, both of which are pivotal for public safety and security.

The urgency of climate change is underscored by recent temperature records, with 2024 marking the first instance of an average temperature rise exceeding 1.5°C since pre-industrial times. Events such as wildfires in Los Angeles and floods across Spain and Africa serve as reminders of the escalating climate crisis. Thus, immediate and coordinated action, rather than mere promises, is essential to alleviate the devastating impacts that are swiftly affecting livelihoods and costing lives.

While some companies and investors are proactively integrating climate-smart strategies, there exists a palpable disconnect between the urgency of climate issues and the actual responses from various sectors. Notably, numerous industries are retracting their climate ambitions while the backing from investors for a net-zero transition is diminishing. Despite some investors incorporating climate change into risk assessments, concrete action in their investment decisions remains slow.

Governments, too, are falling short of meeting the Paris Agreement objectives, with some actions actively undermining international commitments, such as the United States’ recent withdrawal. This pattern of short-termism—wherein businesses, investors, and governance are overly focused on immediate pressures—creates a significant barrier to addressing climate change, thus exacerbating the crisis and complicating future solutions.

The triple short-termism phenomenon leads to a critical mass inadequately existing to confront the climate emergency, which becomes increasingly difficult to resolve over time. Each sector has its rationale for focusing on the short term: companies experience investor skepticism, investors often disregard climate risks, and government leadership struggles amid political turmoil, further hindering long-term climate solutions.

The potential benefits of collaboration across various sectors are substantial. A transformative sustainability approach could unlock new markets, yielding economic growth opportunities for the private sector. Climate-proof portfolios could deliver robust returns for investors, mitigating the risks associated with stranded assets. Governments that spearhead this transition will not only support their economies but also fortify their citizen’s welfare by fostering new skills and sectors.

In summary, to combat climate change effectively, there is a pressing need for collaboration among companies, investors, and governments. Acknowledging and addressing the impacts of short-term thinking is critical to fostering long-term sustainability and resilience. By integrating climate considerations into strategic planning and investing in cooperative solutions, all stakeholders can contribute to meaningful climate action that balances immediate needs with the imperative of future security and growth.

Original Source: www.sustainableviews.com