Every year the United Nations Framework Convention on Climate Change (UNFCCC) holds its COP, or Conference of the Parties. These bring critical climate issues to centre stage, with key negotiations taking place on climate goals and covering a broad range of topics from food to finance.

COPs primarily serve as forums for government representatives to set new targets and review progress on previous commitments, accompanied by civil society and industry involvement. As such, the outcomes have far-reaching impacts, and businesses that act proactively to understand the trends and opportunities that arise from COPs can stay on top of the rapidly evolving global landscape.

COP in context

Each COP provides an opportunity to negotiate new measures and review progress against the UNFCCC's ultimate goal of limiting climate change by reducing global greenhouse gas emissions.

Generally, the main COP concludes with a statement or a binding agreement which is publicly released at the end of the conference, the most well-known of these being the Paris Agreement of COP21 in 2015.

In addition to the UNFCCC COP29, there are also some other significant environmental COPs that convene annually:

• The UN Convention on Biological Diversity (UNCBD), targeting nature and biodiversity, which will take place in Colombia in October 2024.
• The United Nations Convention to Combat Desertification (UNCCD) which will be held in Saudi Arabia in December 2024.

The role of business

In recent years, the UNFCCC COPs have seen increased participation from business leaders. This involvement, while sometimes sparking debates about corporate greenwashing and lobbying, is crucial. The business sector plays a vital role in achieving net-zero goals, making climate COPs legitimate venues for corporate engagement. As UN climate talks are shifting focus towards implementing global frameworks rather than constructing new ones, many argue that private sector expertise and investment is now imperative.

Whilst most of the outcomes reached will have minimal immediate impact on companies, the ensuing net zero policies enacted by governments can help shift attitudes of investors, consumers and employees and evolve frameworks for corporate reporting and governance – which will indeed significantly impact businesses. Even businesses that don’t have the resources to attend can use the trends and opportunities that arise from COPs to stay ahead the rapidly evolving global landscape.

As the Convention sets the stage for global climate action, businesses must not only align with these milestones but also lead by example. Here's how companies can leverage climate initiatives to stay ahead of the curve:

1. Showcase commitment to global targets

Businesses have a responsibility to showcase their commitment to global targets agreed on during the UNFCCC COP. These international political processes offer key milestones for companies to take stock, push for more ambition, and achieve environmental goals. For those that can make it there, business-specific events (such as Finance Day at COP16) can also facilitate discussions on overcoming shared challenges and drive collaborative action.

2. Adopt sustainable practices in line with key areas identified

Aligning with sustainable practices can help companies mitigate risks associated with environmental liabilities. This includes potential penalties for non-compliance with new sustainability regulations and the physical risks from climate change impacts. On the flip side, adopting sustainable practices in line with the key areas identified by leading climate scientists also provide the chance to build business resilience against climate-related disruptions.

To add to this, consumers are increasingly favouring companies with strong environmental credentials, so aligning business aims and goals with those of an internationally recognised event such as a COP can boost public perception and trust in a brand or organisation. In fact, according to Kantar's Global Issues Barometer, businesses are seen as having the greatest responsibility in addressing climate change.

3. Keep up-to-date

When the various COPs convene later this year, their relevance extends to all of us, impacting not only governments but also businesses and society at large. Businesses must keep up-to-date with developments so that they can keep on top of the relevant risks and opportunities that they present.

However you’re getting involved, if we don’t take the COPs seriously, their outcomes will affect us all, no matter where we are.