COP28 – over to business

Empowering women and girls in developing countries ranked second among 76 solutions for curbing global warming, according to a recently released research by Project Drawdown. Progress on DEI will help us as we try and address the climate crisis.

Holding the world's annual Climate Summit in Dubai was always going to be a controversial decision. The city is built in the desert and boasts countless golf courses, an indoor ski resort with five slopes and one of the highest concentration of air-conditioned shopping malls in the world.

As I get out of the airport, the images and impressions collide: illuminated palm trees along urban motorways as far as the eyes can see, a billboard the size of a football pitch announcing a new Armani high-end real-estate development, a traffic jam of Ferraris, Lamborghinis and Porsches as I get closer to the hotel, and cranes, cranes and more cranes...

Not surprisingly, the average UAE citizen has the highest carbon footprint per capita in the world – 50% more than that of an American, three times than that of a European and 10 times than that of a Brazilian.

Add to the mix the fact that this year's COP President is also the chairman of ADNOC, the UAE's largest fossil energy producer, and one could have been forgiven for not holding much hope about the likelihood of progress being made at this year's event.

And then there is the broader context: geopolitical tensions, economic uncertainty, global inflation – for many citizens and governments, the climate crisis simply isn't the main preoccupation right now.

But the world can't afford to waste any more time. According to a recently released European research, 2023 is going to be the hottest year in the last 125,000 years. Early weather predictions for 2024 seem to indicate that the trend will continue.

So, how did this year's COP turn out? Did it make progress? Yes, it did. Enough? Certainly not. How could it? The global climate transition entails such a profound and complex transformation of our social and economic models in such a short timeframe that the pace of progress will always be a source of frustration and anxiety.

Where do marketers fit in?

A COP Summit is physically structured around two concentric circles: the Blue Zone in the inner circle where the negotiation between governments take place covering timelines, treaties and emission caps. Outside this is the Green Zone or the 'fringe COP'. That's where company reps, start-up entrepreneurs, activists, academics, NGOs and civil society meet.

In this space, it’s all about actions rather than targets. And that's also where the discussions around marketing take place and the role that marketers will have to play in changing consumer behaviour.

Here are my five main takeaways from this year's COP from a marketer perspective:

1. Marketers are potential allies in the climate transition
   The vast majority of stakeholders appreciate the critical role that brands can play in getting consumers to embrace a more sustainable future. They want more, not fewer marketers who compete on their sustainability credentials – provided it is done in an ethical manner. They understand that scientists are System 2 (analytical, rational) and that to connect with people, the System 1 (emotional, instinctive) talents of marketers will be needed.
2. Time to sit down with the CSO
   For marketers to unlock the growth potential of the climate transition, CMOs will need to engage with their Chief Sustainability Officers and take a broader view across the value chain from sourcing to disposal. There is anecdotal evidence of how powerful that can be (Ikea, Dole, Reckitt, …), but it needs to be commonplace. That’s where change needs to happen. At WFA, we're committed to bringing the CMO and the CSO communities together in 2024 and beyond. We're convinced that this could deliver a massive boost to the way marketing leaders embrace the sustainability challenge.
3. Watch out for the disruptors
   The digital revolution we went through 10 years ago is the closest thing to the climate transformation we need now. And back then, the start-ups embraced the challenge and built new, future-facing business models, often leaving the incumbents behind. In Dubai, it was striking to see how investors are starting to hunt for start-ups that have big plans to disrupt.
4. Don’t make it about ESG
   Brands should make it simple for consumers to be making the right choice. Building compelling offers, while avoiding the trap of the culture war. The consumer benefit should be your trump card. This is the approach that’s driving the acceleration in the car market and the heating sector.
5. Climate transition and DEI are deeply intertwined
   Empowering women and girls in developing countries ranked second among 76 solutions for curbing global warming, according to a recently released research by Project Drawdown. Girls’ education and family planning are critical important factors in reducing carbon by 2050. Progress on DEI will help us as we try and address the climate crisis.

For marketers to unlock the growth potential of the climate transition, CMOs will need to engage with their Chief Sustainability Officers. At WFA, we're committed to bringing the CMO and the CSO communities together in 2024 and beyond.

There are plenty of reasons why we should all be worried about the current trajectory of the planet’s average temperature and the seemingly slow and inadequate global inter-governmental response. I don’t want to deny that. But exasperation or defeatism isn’t going to get us very far.

What gives me hope is that there is now an engagement of the business community on a scale that we’ve never seen before. The climate transition is going to profoundly reshape consumer demand in the years to come. Investors get that and are reshaping their portfolios and factoring that into their stock valuations.

Those marketers that will be faster and better at responding to the new demand will outcompete the competition and win in the marketplace.

With the Planet Pledge and other complementary initiatives, WFA is determined to support our members to embrace the challenges we face as societies and businesses whilst realizing the immense opportunities that the transition to a sustainable future will bring.