GZERO Summit on sustainability: COVID-19’s promise on ESG

The forced slowdown of global economic activity due to the coronavirus pandemic has slashed carbon emissions around the world, opening a unique opportunity to make real progress in the fight against climate change. But there is fear that it won't be enough, and the world will go back to its old ways when we get rid of COVID-19. However, even before the public health crisis, some major emitters had already taken ambitious steps to rethink how to make their own policies more sustainable.

In Canada, the prominence of oil in the economy doesn't mean that it should hide from the existential challenge of climate change. Fossil fuel profits make Canada not only more responsible but gives the nation the resources to commit to a bold climate policy, Canadian Minister of Natural Resources Seamus O'Regan said during a panel discussion on sustainability at the 2020 GZERO Summit in Japan.


Dawn Farrell, president and CEO of Transalta, Canada's largest clean electrical company, noted that we can apply many of the lessons learned from battling COVID-19 to the global struggle against climate change. The same way governments and the public sector have worked together successful vaccines, there must be equal collaboration on carbon prices, which must be set by governments and not the market alone.

Indeed, the pandemic is an opportunity to entirely transform the economy of countries like Japan, which recently committed to producing net zero carbon emissions by 2050 under new Prime Minister Yoshihide Suga.

Other nations with less muscle, though, may struggle to phase out highly polluting fossil fuels such as coal, which still powers dozens of countries across Asia. That's why rich countries should engage and help them, said Tadashi Maeda, governor of the Japan Bank for International Cooperation.

Meanwhile, countries with both the energy and financial resources to aspire to net zero in the near term should deliver on their Paris Accord climate commitments — and support businesses that are doing the right thing for their bottom line and the planet at the same time. For instance, O'Regan argued that Canada understands where the environmental, societal, and corporate governance (ESG) market is moving, for instance on liquefied natural gas.

ESG lately has become code for simply curbing emissions, but Farrell said that ESG investors want to know you can put your money where your mouth is, and show progress… without big disruption like calls for divestment. Indeed, for Maeda pulling back from all fossil fuels is only one aspect of ESG, and not even the most important right now in most emerging economies.

Beyond ESG investing, companies are also learning how to operate in more responsible way. One of them is Sony, a Japanese conglomerate which the Wall Street Journal recently ranked as the world's most sustainable managed corporation.

So, what's the key to Sony's success on sustainability? Dialogue with investors is crucial, explained Kenichiro Yoshida, the company's chairman and CEO.

With elected governments it's a bit different, but even then the way forward is changing our mindset. Farrell said that they are thinking less about who will be in power to set regulations, and more about the values of the people that put the politicians in power to come up with sustainability policies. If you know the people, you can predict how the governments they elect will act in the future.

Watch the above video to learn more insights from our panelists on COVID-19's impact on global sustainability efforts.

This time last year, world health experts were speculating about why Africa appeared to have escaped the worst of the global pandemic. Younger populations? Natural immunity created by exposure to past viruses? Something else?

They can stop wondering. Africa is now in the grip of a COVID emergency.

More Show less

Get insights on the latest news in US politics from Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington:

House Speaker Nancy Pelosi barred two Republican members from serving on the Jan. 6 commission. What's going on?

Well, the Jan. 6 commission was designed to be a bipartisan commission, taking input from members from Democrats and Republicans. House Minority Leader Kevin McCarthy had the opportunity to make recommendations but the Speaker of the House, Nancy Pelosi, could always veto those recommendations. In this case, she did, saying no to two members, Jim Banks and Jim Jordan, both of whom are strongly aligned with President Trump and who voted against certifying the election results in 2020. The Republicans for the most part see the Jan. 6 commission as an opportunity to score political points against them, and the Democrats say this is going to be a fair, non-biased, and nonpartisan investigation into what happened on Jan. 6, starting with a hearing next week with some of the police officers who were involved in the battle with the protesters inside the Capitol.

More Show less

In his New York Times op-ed, David Brooks says the US is facing an identity crisis — protecting liberal and progressive values at home while doing little to stop autocrats elsewhere. But has the US really abandoned its values abroad just because it's withdrawing from Afghanistan? Ian Bremmer and Eurasia Group analyst Charles Dunst take out the Red Pen to argue that the US can advance democracy without being the world's sheriff.

More Show less

When the Tokyo Olympics begin on Friday, Japan watchers will be following more than just the performance of Japan's star athletes, including tennis star Naomi Osaka. They will also be tracking the political fortunes of Prime Minister Yoshihide Suga, who is taking a big gamble by staging the event — amid a raging pandemic — in the face of strong and longstanding opposition from the Japanese public. What are the stakes for Suga, particularly with elections on the horizon? Eurasia Group senior analyst Ali Wyne explains.

More Show less

YouTube pulls Bolsonaro's rants: Google-owned YouTube pulled down a series of videos on the channel of Brazil's populist President Jair Bolsonaro, accusing him of spreading misinformation about the pandemic. YouTube removed more than a dozen clips for touting quack cures for coronavirus or claiming, in defiance of scientific experts, that masks don't reduce COVID transmissions. Last year, Twitter and Facebook also removed some content from Bolsonaro's feeds for similar reasons. But critics say that YouTube's move is too little too late, because Bolsonaro has been spreading misinformation about COVID since the pandemic began. Many Brazilians hold him personally responsible for the country's abysmal pandemic response, which has led to almost 550,000 deaths, the second worst toll in the world. Will YouTube's move change Bolsonaro's message? His weekly address to the nation, where he converses not only with government ministers but also various conspiracy theorists and loons, is broadcast on YouTube. Surely he doesn't want to risk losing that — or does he?

More Show less

Boycotts! Bans! Protests! Drugs! Think you've got gold medal knowledge about politics at the Olympics? Test what you know with this special Tokyo Olympics Quiz. And to stay current on all the latest political stories at the Games and around the world, subscribe here to Signal, our daily newsletter. Now, without further ado, the first question is...

More Show less

28: The UK and the EU have again failed to agree on post-Brexit trade rules for Northern Ireland, which is part of the United Kingdom. In a 28-page document, the British government had suggested further changes to trade rules that were already negotiated as part of the Brexit settlement, but Brussels was not having any of it.

More Show less

Subscribe to GZERO Media's newsletter, Signal

GZERO World with Ian Bremmer. Watch episodes now

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal

GZERO World with Ian Bremmer. Watch episodes now

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal