More than 100 CEOs call for climate action even as divide emerges

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The bosses of Ikea, AstraZeneca and Volvo Cars are among the chief executives and chairs of more than 100 companies pushing governments to boost the business case for green investment, even as a growing list of corporate leaders have opted not to attend the UN climate summit this year.

The show of support from the 112 leaders from global companies across a wide range of sectors rallying for climate action in an open letter ahead of COP29 in Baku next month was organised by a World Economic Forum alliance of CEOs.

It comes as a division is emerging on corporate climate action. Many large international companies have begun rolling back their emissions targets, blaming cash-strapped governments for failing to deliver the anticipated support and standards for green energy and technology.

The Financial Times reported this week that the bosses of Bank of America, BlackRock, Standard Chartered and Deutsche Bank were among prominent financiers expected to skip COP29 this year, as expectations were lowered for the world’s most important climate negotiations.

But Jesper Brodin, chief executive of Ingka Group, the main operator of Ikea stores, said the CEOs who had signed the letter wanted governments to set strong targets, scale up finance and “remove some of the obstacles for industries and companies to make the investments”.

“We need more interaction, more support and more collaboration from policymakers around the world in order to both enable investments and speed up investments,” he said.

In their letter, the signatories, including leaders of Zurich Insurance, Iberdrola and Fortescue Metals, supported carbon pricing, the development of high-quality carbon markets and an end to fossil fuel subsidies.

They also said policymakers and regulators should remove the barriers that were preventing countries meeting the COP28 pledges to triple renewable energy and double energy efficiency by 2030.

Long delays with permitting and lengthy grid approvals were holding up renewable energy projects, and more regulatory and financial support was needed for new green technologies.

Jesper Brodin, chief executive Ingka Group: ‘It is not always easy, because it is very transformative’ © Bloomberg

Brodin said major companies were engaging with both the Azeri hosts of COP29 as well as national governments ahead of the summit. He also acknowledged the corporate divide on climate change planning.

“The distance between the [businesses] who are on the train to the new economy, the smart economy, and the ones on the platform is increasing.”

Despite the reluctance from some businesses, he said he believed the shift to a greener economy was now unstoppable, even if progress was still too slow.

“It is not always easy, because it is very transformative . . . [but] you have a very large group of companies representing every sector who are on the train and who are transforming or investing and are reaping the benefits of the new economy,” he said.

At COP29, almost 200 countries are expected to discuss a new global financial target to support developing countries transition their economies and deal with the effects of climate change, known as a new collective quantified goal.

Simon Stiell, the head of the UN climate change arm, said ambitious national climate plans could unleash huge benefits for countries, with new jobs, more affordable energy and “massive opportunities for businesses”.