FT Comment Piece-Letter: Businesses that cut emissions will enjoy early mover advantage”

News that Costco has agreed to adopt targets to cut carbon emissions in response to a petition from its own shareholders (“A small but mighty change to force US corporate climate reform”, Moral Money, FT.com, November 19) is yet more evidence of how, according to McKinsey, net zero is now an “organising principle” for business. Shareholders, consumers, activists and large asset managers are all applying pressure on businesses to commit to cutting emissions to transform not only their businesses, but their industries and markets.

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

Until we see global regulations put in place to compel all businesses to act, businesses must take swift, decisive action of their own accord — there is too much at stake for them to wait until their hands are forced.

Many business leaders understand this and are already pushing for change. It is hugely significant that, along with climate change activists, it was businesses that were pushing for more action after COP26 agreements were watered down.

What’s key here for the private sector is that net zero goals can no longer be tangential to business goals. There are various measures businesses can take to cut down emissions. As an example, raising energy efficiency labels and increasing product efficiencies across the globe can have a huge impact.

Four domestic appliances (refrigerators, ACs, motors and lighting) add up to 40 per cent of all global energy consumption.

John Denton, secretary-general of the International Chamber of Commerce, said a “concerted effort” would be needed in the next few months to adhere to targets of limiting global warming to 1.5C. This concerted effort is under way, businesses are starting to step up and this is only the beginning — more will do the same in the near future. The business world is fast becoming a sustainability-driven ecosystem and the gift for early movers will be survival.

Hakan Bulgurlu
Chief Executive,
Arcelik Istanbul, Turkey