Over the weekend, the fraught negotiations that have characterised the 2024 UN Climate Conference (COP29) formally came to a close in Baku, Azerbaijan. This year’s summit was especially shadowed by negotiation deadlocks, political contention over the efficacy of the COPs to deliver a fossil fuel phaseout, and the future of the 1.5C target. Climate scientists also expressed their virtual certainty that 2024 will be the first individual year above the 1.5C threshold, sparking an ever-greater sense of urgency for climate action.
It is increasingly recognised at the COPs that cross-industry action to reduce global emissions is crucial to tackling the worst impacts of climate change – which, if left unmitigated, pose serious financial and operational challenges for retail businesses. The UK retail industry has a pivotal role to play in delivering net zero, through action across the different decarbonisation pathways outlined in the BRC’s Climate Action Roadmap: from data-driven reporting & decisions, utilising renewable energy sources, moving to low-carbon logistics, sustainably sourcing raw materials, to promoting low-carbon lifestyles.
Read on for the 5 key outcomes from COP29 that UK retailer businesses should be aware of, each with the potential to impact the industry’s agenda and action on climate.
Clean Energy
The absence of multiple major world leaders at COP29 meant the Labour Government’s ambition to reestablish the UK’s leadership on energy and climate received particular visibility at the summit. The most eminent outcome from COP29 was Keir Starmer’s announcement of the UK’s ambitious new Nationally Determined Contribution (NDC) to the Paris Agreement, to reduce national emissions by 81% (compared to 1990 levels) by 2035. Starmer also announced the establishment of the UK-led Global Clean Power Alliance, which aims to facilitate global collaboration on increasing global renewable energy capacity. Another clean energy announcement was the Global Energy Storage and Grids Pledge, endorsed by the UK, which aims for nations to increase global energy storage capacity and update global energy grids.
Takeaways for action
- Recognise the potential for upcoming policy on grid decarbonisation and examine the possible impacts of prospective legislation.
- Evaluate the current energy profile of your supply base and consider your role in increasing supplier adoption of renewable energy.
- Engage with us on the need for a breakthrough on the deadlock around zero-carbon HGVs and. Support the BRC with the opportunity to push for progress in this area, following movement in the adjacent energy space.
Methane Emissions
Following on from the 2021 Global Methane Pledge – which aims to reduce global methane emissions by 30% by 2030 – more than 30 countries, including the UK, have established a new Organic Waste Pledge. Countries have committed to set sectoral targets to reducing methane from organic waste. Food and organic waste in landfill is the third largest source of global methane emissions, behind the agricultural and fossil fuel sectors.
Takeaways for action
- With a large proportion of methane emissions stemming from upstream and downstream retailer supply chains, retailers should take actions to disclose and report on scope 3 emissions.
- Engage with agricultural suppliers on the actions they are taking to reduce methane emissions from their operations. For example, a group of supermarkets have recently begun trialling a new feed expected to reduce methane emissions from cattle farming.
- Understand the potential for future legislation on Mandatory Food Waste Reporting in the UK, and examine the implications of compliance for your business. This policy is due to be considered by government next year and may see an acceleration due to its contribution to achieving this Pledge.
Deforestation
After the rising pressure at the UN Biodiversity Conference last month for the UK to scale up its action on nature-based solutions, the UK announced a £239 million boost in funding for global forest conservation at COP29, falling under the wider £1.5 billion promised for protecting and restoring forests by the UK Government. This increase in funding affirms the renewed growth of attention on deforestation.
Takeaways for action
- The EU Deforestation Regulations (EUDR) is due to come into force in 2025, with the UK-equivalent Forest Risk Commodities Regulations also forthcoming. To get ahead on compliance, retailers should identify the deforestation-risk commodities sourced in their supply chains and evaluate what reporting requirements are to be expected. If you are interested in participating in our EUDR Sprint Group, please contact Sophie De Salis.
Agriculture
COP29 saw the launch of the Baku Harmoniya Climate Initiative for Farmers. The initiative aims to increase agricultural climate-resilience by providing agricultural organisations and farmers with better access to resources and support.
Takeaways for action
- This initiative could serve to provide guidance and best practice learnings for how retailers can improve engagement with agricultural suppliers.
Climate Finance
The most high-profile outcome of COP29 was the result of the tense and disputed negotiations on the new collective quantified goal on climate finance. Developed countries have formally pledged $300 billion per year in climate finance flows to developing countries by 2035, with a voluntary call for efforts to raise $1.3 trillion a year from a wide range of both public and private sources. The ICC estimates around two thirds of this goal is to come from the private sector.
Takeaways for action
- The emphasis on the private aspect of the new global climate finance goal could provide a space for large retail businesses to demonstrate the investments they are making across their supply chains located in developing countries to support with supplier decarbonisation. This could be an opportunity for retailers to demonstrate leadership, improving business operations and reputation.
Beyond COP29: BRC Climate Action Roadmap
The BRC’s Climate Action Roadmap is the retail industry's ambition to deliver net zero in its supply chains, direct operations, and products sold by 2040. The Roadmap is designed to provide retailers with guidance on the steps they can take to decarbonise their operations and supply chains.
Recent sub-sector meetings have identified three areas for focus of our Roadmap programme in 2025:
- Understanding challenges and opportunities in the crossover between work on climate and nature.
- Establishing a collective structured approach for consistent net zero commitments and data from shared suppliers.
- Developing an outcome-oriented approach to retailer engagement with agriculture.
COP29 has delivered tangible outcomes across these spaces. The Roadmap will be a useful tool for understanding and acting on any new requirements or policy that could emerge as a result.
For any queries related to the Climate Action Roadmap, contact Tracey Banks.