The Paris Pact will enter into force in 2020, when 55 nations responsible for at least 55% of global emissions will ratify the agreement at the UN in New York. In today`s business landscape, four years can feel like an eternity where many companies make decisions that soothe investors` short-term approach and quarterly performance often triggers equity volatility. With the Paris Agreement on the horizon, companies in all sectors have begun to recognize the urgency and extent to which they need to integrate the Sustainability Goals of companies with long-term financial goals. Indeed, the presence of the private sector during the negotiations and its important commitments to fight climate change were one of the key factors that contributed to the success of COP21, experts say. Which sectors were most affected by the Paris Plan? The actions of the Obama administration have drawn a map. Obama-era rules, such as the Clean Power Plan, were aimed at reducing coal and methane leakage from natural gas drilling. He reaffirmed strict fuel efficiency standards for car manufacturers. The impact of President Donald Trump`s decision to withdraw from the Paris climate agreement will be different for companies depending on what they produce and whether they have overseas sales. In announcements in the New York Times, Wall Street Journal and New York Post in May and June, the companies informed the president that continued U.S. participation in the deal would help them address rising climate risks and compete with growing global clean energy markets. The announcements were sponsored by C2ES in collaboration with the non-profit sustainability organization Ceres.
Beyond the coal industry, haven`t other companies appreciated the potential impact of the Paris Treaty on them? While some of the U.S.`s best-known large companies have backed the Paris Agreement, many small entrepreneurs have worried about the potential for higher energy bills and costly new environmental rules. They applauded Trump`s decision. Initiatives such as science-specific targets instruct companies to set emission reduction targets in line with climate science and are likely to be more accepted in the future, as businesses and facility owners see the benefits that improving carbon intensity can bring across their business. . . .