From Azerbaijan to Aotearoa

We have arrived in 2025. We’re halfway through the decade, with 2030 national and global sustainability targets getting closer and closer. So what progress has been made? And what will be our next moves? To answer these questions, we need to reflect both locally and globally to identify what meaningful action looks like, as climate action demands collective action.

What progress has been made globally? 
2024 concluded with COP29, the global conference where international sustainable development policy is negotiated. This COP was host in Baku, Azerbaijan, with 65,000 in-person attendees. The biggest hitting topics from the conference included the New Collective Quantifiable Goal (NCQG), Carbon Markets, Global Stocktake and Nationally Determined Contributions (NDCs).  

The NCGQ was what gave this conference its ‘finance COP’ reputation. The NCQG is an agreement where developed countries contribute financially to developing countries to support their climate adaptation response. Previously the agreement had been set at $100 billion USD per year, and at the conclusion of the conference the minimum sum was valued at $300 billion USD per year. The fund is paid by a list of developed countries established in 1992 under the Kyoto Protocol. The tripling of the finance goal showcases how in the long term it will be more expensive to adapt to climate change compared to mitigating the emissions contributing to global warming. Prevention is always better than cure.

Another key topic was the carbon markets and emission trading, which negotiated three subclauses of article 6 under the Pairs Agreement. These clauses established methods of accounting towards national targets, emission reduction projects, and cooperation. These negotiations were a big moment for New Zealand because Minister Simon Watts was part of the ministerial pair, along with Minister Grace Fu from Singapore, that represented the conference presidency throughout the week of negotiations. The negotiations seek to finally move countries closer towards an agreed ‘voluntary cooperation’ framework for emissions trading, which could facilitate a globally coordinated response to greenhouse gas emissions.

COP29 also saw the presentation of the first Global Stocktake of emissions. This stocktake was initiated in the UAE during COP28 and it reinforced the need for global emissions to be reduced by 43% by 2030, and 60% by 2035 to remain within the 1.5°C. These targets will be responded to as each country submits their Nationally Determined Contribution (NDC) in February of this year. 

This is a big submission for New Zealand that only happens once every five years. Within each NDC is a National Climate Action Plan, which is good to look out for to assess the actions relevant to the industry your company operates within. 

Top three 2025 climate agenda items for the boardroom

1. Awareness 
   With the impacts of climate change now part of our lived reality, it’s important every organisation knows their numbers when it comes to carbon emissions. Mandatory Climate-related Disclosures are already in place for many listed companies with measurement being a critical first step towards management. It’s also critical to understand the climate change risks, both physical and transitional as we adapt towards a lower carbon future. These risks change under different climate scenarios which can be explored with the ‘Transition Planning’ resource available on Chapter Zero. 
   
   Key boardroom questions: What is this company’s emission profile?
   What physical and transitional risks do we need to be aware of? What opportunities does the transition to a lower-carbon economy present?
   
   
2. Accountability
   Climate action is everyone’s job and setting targets is a clear next step once a company’s emission profile is known. Targets should be meaningful, time-bound and have a high impact relative to investment. The AICD has a good resource on principles for target setting. Certifying organisations including Toitū and SBTi are also useful for setting targets that enable progressive reductions over time. 
   
   Key boardroom questions: What targets have been set? How can these targets lead the transition of the industry or market? What is the performance gap (positive or negative) between the company’s performance and climate targets?
   
   
3. Action
   Reducing emissions requires collective effort, and building capacity within your business is key to driving impactful and sustainable change. Collectively, our decarbonisation efforts must accelerate, and boards need to equip their organisations and teams with the right knowledge, skills, and tools, to foster a culture of action and accountability. For companies with a property portfolio a useful resource is the Warren and Mahoney ‘Go Zero’ Guide that breaks down carbon emissions from buildings and how to start actioning reductions for a sustainable future. 
   
   Key boardroom questions: How does reducing emissions align with the overall company strategy? What skills are required to reduce emissions? What are emerging opportunities to reduce emissions? How do we demonstrate leadership?

COP29 brings global climate action back into focus and how collective action is critical to achieving our 2030 targets. As a country, our emissions have decreased in recent years. However, more work is needed to meet Aotearoa’s climate goals and international commitments. The time for leadership and commitment is now, as these targets and the implications of them become real to ensure a sustainable future.