The United Nations’ top corporate sustainability chief has warned business leaders that they can no longer ignore the growing divide on climate change between rich and poor nations.
UN Global Compact CEO Sanda Ojiambo described the rift as “the biggest chasm” and urged business leaders to work with governments to find solutions. The rift was on display at the recent COP29 summit in Baku, Azerbaijan, where developing nations were left disappointed by the $300 billion finance deal agreed to by wealthy countries.
Ojiambo warned that divisions and tensions over climate finance were having a major impact, stifling the flow of capital and breaking trust between governments and business. She stressed the need for stronger public-private partnerships and more “affordable capital” for businesses in developing nations.
Climate change is particularly a concern for small island developing nations, who produce the least amount of emissions but are the most impacted by the effects of climate change. Climate scientists warn of rising sea levels, frequent cyclones and food insecurity if temperatures rise above 1.5C.
Despite the challenges, Ojiambo and others see an opportunity for businesses to achieve sustainability goals by investing in female-led enterprises. CEO Katherine Garrett-Cox of GIB Asset Management suggested that businesses should apply a “gender lens” to investing, as female-led businesses tend to be more focused on climate change.
However, gender lens investing is still in its early stages, accounting for just $8 billion of private market investment in 2023. But the potential for investment is significant, and businesses and governments may need to work together to achieve a more sustainable and equitable future.