Five Takeaways from Climate Week NYC 2024

The theme of this year’s NYC Climate Week was “It’s Time.” Business leaders, investors, academics, policymakers and civil society representatives agree that having a plan is not sufficient for climate leadership. As former Canadian Minister of Environment and Climate Change, Catherine McKenna put it, “now is the time for action, even if it is hard.”

Here are our five takeaways from North America’s largest climate event:

1. Boards need stronger foresight to seize climate opportunities
   
   As management teams focus on evaluating and mitigating climate-related risks, boards need strong visions of what success and competitive advantage look like in a net-zero future. Research suggests that boards have established comprehensive oversight on climate matters, however few directors have demonstrated the competencies necessary to advise on the climate-related risks and opportunities they are responsible for overseeing. This raises concerns about the capacity and potential conflicts of interest that current directors pose in navigating the economic transition effectively. Independent skill testing, further training and more stringent expertise requirements are necessary for directors to effectively oversee increasingly complex climate decisions.  
2. Engage with policymakers to expedite progress
   
   While leading investors and businesses have made strides in decarbonizing their portfolios and operations, many have indicated that new policy measures are required to drive further progress. A 2024 a study on Public Policy Engagement Alignment Assessments by InfluenceMap found that only 7% of focus list companies exhibit strategic engagement with climate policy. This presents an opportunity for businesses and coalitions to redirect their lobbying practices and advocate for the policy changes required to drive investments in climate solutions and foster future economic competitiveness.
3. The importance of value chain partnerships and collaboration
   
   Meeting Paris Agreement commitments requires an all-hands-on-deck approach, especially as the focus of decarbonization extends up- and downstream of operations (i.e. scope 3 emissions) and climate risks and opportunities manifest across value chains. This means organizations must work together to share data and take collective action for mutual benefit. To do so, investors and companies should look to activate new sources of capital for emerging technologies, such as from blended finance, which combines private and public investment to derisk solutions.
4. Social equity integration into climate transition plans  
   
   Like all economic transformation, the transition to a net-zero economy is presenting social risks and opportunities. Advancing a just transition is about decarbonizing the economy in a way that is fair and inclusive, creating decent work opportunities for all. At the Sustainable Investment Forum, leading asset managers discussed integrating these concepts into climate transition planning and engagement. At other events, resource developers discussed Indigenous participation, employment and equity positions in new projects (e.g. through the First Nations Major Projects Coalition) and pathways to economic reconciliation. We see an imperative to ensure social risks and opportunities are identified and integrated into climate transition plans in partnership with relevant stakeholders.  
5. Increasing but fragmented disclosure requirements  
   
   The international ecosystem of sustainability and climate-related disclosure continues to fumble towards standardized requirements. The Canadian Sustainability Standards Board (CSSB) is currently in the throes of finalizing and approving the proposed Canadian Sustainability Disclosure Standards (CSDS 1 and 2). South of the border, the United States continues to be mired in political polarization;  just one month after releasing its much-anticipated new rules on climate reporting in March 2024, the Securities and Exchange Commission (SEC) paused its implementation after being sued by over two dozen states and other entities. Meanwhile, the staggering scope and specificity of the European Sustainability Reporting Standards (ESRS) are pushing the boundaries of transparency. Despite the promise of coalescence and interoperability still being far from reality, we see best efforts being made to disclose with integrity and clarity, and applaud leadership in this regard. We anticipate the disclosure landscape to stabilize in 2025 as standard setters finalize their requirements and entities gain experience satisfying them. However, we see a worrying and widening chasm taking shape between American deadlock and European leadership, which may have important consequences for Canadian climate ambition. Leadership is more important now than ever to remain competitive in the net-zero economy of tomorrow.

At Quinn+Partners, we advise businesses and investors to embrace sustainability and the climate transition and excel in a changing world. If you are ready to take the next step on your climate journey, please get in touch.