By Harold Pauwels, Director of Standards, GRI
In December 2023, Dubai was the scene of the UN Climate Change COP28, the largest one yet. The event was marked by a hopeful tone, with the UNFCCC describing it as the ‘beginning of the end’ for fossil fuels. This optimism was reflected in significant commitments, such as the mobilization in just four days of over $57 billion for climate action, and the launch of the Oil & Gas Decarbonization Charter. In addition, 118 countries pledged to triple renewable energy capacity in the next seven years, and the Loss and Damage Fund was formally established.
However, there’s another side to the story: only $188 million was pledged for adaptation efforts, falling far short of the $300 million goal (according to the World Economic Forum), and highlighting the billions needed to protect vulnerable communities.
As greenhouse gases still reach record levels, the gap between words and deeds is alarming. How can we bridge this divide before it’s too late?
Beyond climate finance: approaching Baku
Nearly a year after COP28, global attention is shifting to COP29 in Baku, just over a month away. The climate negotiations held between the two appointments have zeroed in on a crucial issue: climate finance. The world’s most vulnerable nations are bearing the brunt of climate impacts while lacking the resources to adapt and thrive. This renewed emphasis is one of the two pillars of COP29: ‘enabling action’:
Securing financing to reduce emissions, adapt to climate change, and address loss and damage.
It’s no coincidence that COP29 has unofficially been dubbed the “finance COP”. However, I believe finance alone simply won’t be enough. A clearer, more impactful vision for the future emerges with the other pillar of the summit, ‘enhancing ambition’:
Ensuring countries commit to bold climate plans with transparency.
Merging these two milestones reflects the integrated approach crucial for driving meaningful climate progress, and it was a central theme at another key discussion platform: Climate Week NYC, which took place at the end of September in New York.
Revamped Climate Change and Energy Standards
Thousands of key players from across the economic, political and civil society spectrum converged in the Big Apple with a clear mission: to confront the escalating climate crisis.
GRI was there, convening reporters and sustainability experts from around the world, seeking to answer a straightforward but essential question: will global commitments from the private sector withstand the test of transparency and accountability? And as the pressure grows to avoid greenwashing and deliver tangible, location-specific impacts, how can companies truly prove their integrity?
GRI’s new Climate Change and Energy Standards, currently being finalized, provide key contributions to the answer. These draft GRI Standards were examined and closed during a two-day Technical Committee session, hosted at the Microsoft offices in Times Square. The session included by a roundtable to get input from prominent members of the GRI Community.
The bottom line is about providing clear answers to complex questions, and to do so in a way that takes a synergetic, inclusive and multistakeholder perspective. Here’s what unfolded.
New Standards, new perspectives
The attending experts welcomed several milestones of these upcoming standards, with particular focus placed on:
- The introduction of new disclosures and metrics for target setting, transitions, and adaptation plans. This responds to the need to report with location-specific data to assess impacts, while accounting for the overlap and interlinkage between climate and nature.
- The alignment between the new Standards and globally recognized protocols and initiatives, such as the WRI GHG Protocol, Transition Plan Taskforce, and the Science-Based Targets Initiative (SBTi). This underlines why voluntary reporting through the GRI Standards serves as a strong foundation for regulatory compliance and fact-based decision making.
- The prioritization by GRI of emissions reductions over offsetting. Both the experts of the technical committee and GRI Community members remarked how corporate targets should emphasize immediate and substantial emissions reductions, reserving carbon credits only for the final stages of decarbonization, and exclusively for hard-to-abate residual emissions.
- The requirement in the new Standards that organizations report energy efficiency efforts and renewable energy transition targets. Numerous sessions during Climate Week NYC identified the energy sector as one of the largest GHG emitters, as well as its essential role in reaching net-zero.
- Finally, the emphasis on a just transition approach. The discussions highlighted GRI’s focus on reporting the social aspects of climate action through its new ‘just transition’ disclosure. This process aims to be inclusive, engaging diverse stakeholders to ensure all voices are heard and contribute to meaningful climate progress.
The message ahead of COP29 is clear: while finance is crucial for climate adaptation and loss and damage reparation, it alone won’t suffice.
Increased corporate transparency and stronger accountability are essential parts of this complex equation. But it’s not just about the environment — it’s about inclusivity. COP29 must bring diverse stakeholders to the table, ensuring that all voices are heard and driving equitable solutions that leave no one behind.
GRI will continue in our key convening and guiding role, through globally relevant sustainability reporting standards and a consensus-seeking and multistakeholder approach.
About the author
Harold Pauwels is Director of Standards at GRI, where he leads the development of next-generation sustainability reporting standards, promoting transparency on organizations’ impacts across the economy, environment, and society. His work spans key areas such as biodiversity, climate change, energy, labor, economic impacts, and pollution.
Before joining GRI, Harold built a career in the chemical industry and held various management roles in standardization, certification, and accreditation. He initiated global and regional sustainability and safety initiatives and holds a master’s degree in chemical engineering, chemistry, and business administration.
