Nikos Avlonas, President of Center Sustainability & Excellence–CSE
What concerns do organizations raise about Sustainable Development and how the new EU strategy for 2030 (Green Deal) will affect them in the near future. Why do consumers and investors keep setting the standards higher when it comes to Sustainable Development?
According to Ursula von der Leyen, president of European Committee, about 100 billion euros will be invested the following years in order to find a tool of «fair and just transition» towards Sustainable Development. It seems that 2020 will be defined as a milestone year for these issues.
Europe aims to become the first climate neutral continent by 2050 by slowing down global overwarming and mitigating its results. European Green deal is the new growth strategy for Europe that will not only cut down its emissions but will also create new job positions, will improve quality of life by investing in clean energy, expand commissions trading schemes, reinforce circular economy and maintain biodiversity.
This March, the first European Climate Legislation will be proposed as investors and entrepreneurs require clear rules and instructions to design their long-term investing plans.
European Organizations and how they are affected by Green Deal
Green Deal, as a mechanism of reducing GHG emissions is expected to affect hundreds of corporations in Europe as well as service providing companies, small medium companies and the Public Sector.
Carbon Tax. Several European countries, have already applied a direct taxation system for all the imported products and services in the EU. For the EU, this system not only can it protect its industry but also urge other regions to move ahead with similar climate actions
Responsible Investment. Green investment will be promoted through funding from the European Investment Bank (EIB) where companies that take actions against climate change will be financially supported under strict supervision of the criteria to be met. Companies that are unlikely conformed to ESG ratings or belong to polluting sectors, will receive hardly any funding. Investors will reject organizations that do not meet international standards such GRI, CDP or do not have good ESG scores.
Supply Chains. Small and Medium companies may need to comply with more strict and precise criteria on Sustainability and apply strategies that fulfil explicit requirements. Others may have to change their business model in order to survive in this new economy.