Q & A: Pamela Jouven, Director of the SME Climate Hub on how SMEs can decarbonize
14 JUN 2024
Pamela Jouven, Director of the SME Climate Hub, an online platform for small and medium-sized enterprises, talks about the Hub’s work to accelerate a global movement and mobilize SMEs to take climate action – and why that action is critical for the planet.
How does sustainability align with your strategy?
We support small and medium-sized businesses on their climate action journeys by providing them with free tools and resources to reduce their carbon footprint. We also invite businesses to make the SME Climate Commitment and be recognized by the UN’s global Race to Zero campaign by halving emissions by 2030, reaching net zero by 2050, and reporting on their progress each year. More than 7,500 SMEs from over 130 countries have made the commitment so far.
The SME Climate Hub is an initiative of the We Mean Business Coalition, a global nonprofit that had historically worked with larger corporations to halve global emissions by 2030. But the crucial role SMEs play in reducing global greenhouse gas emissions has become increasingly apparent: 90% of companies globally are small or medium-sized enterprises, employing 70% of the world’s workforce and contributing over 50% of global GDP.
SMEs also have a more local customer base, staff and supply chain, making them more vulnerable to the impacts of climate change. To create more resilient communities, SMEs need to be able to weather these changes, while we work to keep global temperature rise in check – but they need support.
What do you see as the most important opportunity to focus on in the sustainability space?
To reach net zero, we need small and medium-sized businesses to make consistent progress toward global targets. At the same time, we must not put a disproportionate burden on the businesses that have the least resources to navigate the energy transition. Governments, corporations, civil society and industry associations all need to come together to support them.
Over 80% of the SMEs we survey annually say they want to take action but need financial resources, tools for action, regulatory support and even support from their investors and customers. 61% of those surveyed told us their customers – whether corporate partners or individuals – were not asking them to reduce emissions. If corporations and governments want to meet their own climate goals, they need to bring their entire supply chain and constituents on board.
How are you involving stakeholders in your sustainability efforts?
We’re working with a diverse set of stakeholders to help us reach SMEs with the information they need, build out support and incentive systems, and streamline the commitments we are asking them to make or the data we are asking them to disclose. Through a partnership with the COP28 Presidency, First Abu Dhabi Bank and Masdar, we began to mobilize SMEs in the Middle East and North Africa and created a version of the SME Climate Hub digital platform in Arabic. We’ve also expanded our footprint in the UK and US and launched recruitment campaigns and regionalized programs in Latin America, the Caribbean and India.
When engaging corporations in the mobilization of their supply and value chains, we’ve seen increasing progress. Last year, we launched a partnership with IKEA’s largest retailer, Ingka Group, to share the SME Climate Hub resources with its SME customers. And we’re working with multinational corporations and the finance industry to boost access to incentives that support SMEs’ low-carbon transition.
How are you fostering innovation in sustainability?
We’re already seeing thousands of companies taking climate action because they know it’s critical to protect their bottom lines. With the right resources to take climate action, SMEs can reduce costs from long-term climate impacts, improve efficiency and create a healthier environment for their operations and communities. Businesses are also realizing more and more that customers, investors and governments are now looking for companies that have a lower environmental footprint.
Key to supporting SMEs in their decarbonizing efforts is innovative financing, and we are also working with financial institutions to develop tools such as preferential loans and terms for SMEs that are taking climate action.
In what areas do you see other sustainability-related opportunities?
The SME Climate Hub and the We Mean Business Coalition are working with more corporations around the world to mobilize even their smallest suppliers toward climate action, including a supplier cascade campaign calling on corporations to help their suppliers reduce emissions. In addition to providing free tools and resources, we work with large corporations to incentivize their smaller suppliers. This can mean beneficial contracts for companies that are taking action or procurement requirements prioritizing businesses that are targeting emissions reductions.
Companies and governments are increasingly calling for a phase out of fossil fuels. We recently worked with Netflix to create our Action Courses, which offer guidance for EV adoption within the film and television production sector – an approach we’re planning to replicate in other industries. By moving toward clean energy solutions across businesses of all sizes and fostering essential collaborations in supply chains, we can drive larger change throughout entire systems and industries.
Related News
04 SEP 2024
Cooling our world is warming our planet. Here’s how we can turn down the heat.
As global temperatures climb, we are ramping up our use of air conditioning. The trouble is, the machines cooling our spaces are significant contributors to global warming. The UAE is rising to the challenge, combining ancient wisdom with avant-garde thinking.
Summer 2024 has brought unprecedented global heat, and new records are being set as the mercury rises. As more of us rely on air conditioning to help keep our homes, offices and public spaces comfortable, our contribution to global warming is rising, too: air conditioning causes around 7% of global greenhouse gas emissions.
Enter sustainable cooling. The UN and the International Energy Agency estimate that climate-friendly cooling could help us avoid up to 460 billion tonnes of greenhouse gas emissions over the next four decades. That’s equivalent to more than ten times India’s current annual GHG emissions.
Cooling our lives without warming our planet
Sustainable cooling encompasses a variety of measures we can take right now to help limit the impact of growing global demand for space cooling. These include improving the efficiency of existing cooling systems, innovation to develop more sustainable cooling technologies and measures that lower ambient temperatures in buildings and urban environments.
Crucially, our response to this challenge must be twofold: as well as upgrading and reimagining the infrastructure which enables today’s cooling systems, we have an opportunity to reduce the need for cooling by designing and building cooler environments in the first place.
Reimagining age-old techniques
The Middle East can draw on a long tradition of ‘passive’ architecture and design techniques which can significantly reduce heat. Rather than fighting the elements by deploying elaborate technologies to counter sweltering temperatures with artificial cold, this approach takes advantage of local conditions. The aim is to work in harmony with the existing environment to reduce the temperature of buildings, without the need for power. In the UAE, techniques include shading devices, double glazing and positioning buildings to channel natural ventilation. Buildings can also be designed with higher thermal mass, so they self-regulate by absorbing daytime heat and releasing it at night. Outside, green roofing, evaporative cooling using water features, and the application of light color coatings have all stood the test of time - and the elements.
In Abu Dhabi, for instance, traditional techniques are being reimagined for today’s needs. The sustainable urban community of Masdar City boasts a modern spin on an ancient wind tower or barjeel, which captures the prevailing wind, channeling it down past cooling mist jets into a central courtyard below. The structure, which designers say can reduce the temperature by 5 degrees celsius at street level, is built with metallic, open sides, to help visitors understand the passive design. Just a few steps away, this time-honored Middle Eastern technique also helps keep Siemens employees cool at the tech company’s innovative regional headquarters.
Elsewhere in Masdar City, the striking Al Bahr Towers combine traditional mashrabiya-style shading with 21st-century technology. The towers are adorned with over 1,000 computerized hexagonal shades which can move and adjust throughout the day, providing shade when the sun is at its strongest.
Efficiency and innovation
The Middle East is also pioneering innovative ways to future-proof buildings, rolling out new approaches to sustainable cooling. Among these, Tabreed operates 89 district cooling plants across the UAE and GCC, using chilled water from centralized energy plants to cool whole neighborhoods via underground pipes. The company is also developing ground-breaking geothermal energy which currently meets 10% of Masdar City's cooling needs. Geothermal cooling, which harnesses energy from beneath the Earth’s surface, reduces energy needs by up to 70% compared with traditional air conditioners.
AI is another tool in the race to make cooling sustainable, with companies like Hyperganic combining algorithmic engineering with industrial 3D printing and engineering to iterate at scale. Partnering with Abu Dhabi-based Strata Manufacturing, Hyperganic has created heat exchangers with radically different structures that could lead to residential air conditioning units that consume 10% of the energy that a conventional device uses.
Progress is being made to reduce leakage rates from traditional air conditioning units, mainly through better design and installation practices. In the UAE, Mubadala Investment Company’s aerospace unit Strata has teamed up with European partners to develop the world’s most energy-efficient residential air-conditioning system in the Emirates.
The hunt is also on to find more climate-friendly solutions than hydroflourocarbons (HFCs), including hydrocarbon refrigerants and ammonia. In keeping with international commitments, the UAE plans to freeze the consumption and production of HFCs in 2028. When coupled with enhanced energy-efficiency measures, these can help reduce both direct emissions from refrigerant leakages and indirect emissions from the energy used to power cooling units.
Sustainable cooling on the climate agenda
As hosts of the COP28 climate conference in 2023, the UAE placed sustainable cooling firmly on the agenda. Chief among outcomes was the Global Cooling Pledge, which saw 60 countries commit to reducing the climate impact of the cooling sector. Spearheaded by the Cool Coalition, a global network dedicated to more climate-friendly cooling, the pledge aims to reduce cooling related emissions by 68% by 2050 and to increase the global average efficiency of new air conditioners by 50% by 2030 at the latest.
Described by the IEA as one of the most critical energy issues of our time, cooling is growing increasingly prominent within the climate change conversation. The shift to more sustainable cooling for our warming world is a formidable challenge. While the planet heats up, we need to ensure we’re not throwing fuel on the fire of global warming while we try to cool down.
By merging ancient wisdom with cutting-edge innovation, we can reduce our reliance on energy-intensive cooling systems and work with the planet to create cooler environments. The Middle East, with its rich history of passive cooling techniques and ambitious climate goals, is uniquely positioned to lead this shift. But only through concerted global efforts to improve cooling efficiency, develop climate-friendly alternatives and prioritize sustainable urban planning can we hope to escape this vicious cycle and ensure a habitable planet for generations to come.
15 AUG 2024
The future of water
Covering most of the planet’s surface, water is seemingly one of the most abundant substances on earth. But today, many communities and countries are facing a usable water crisis.
While millions of people worldwide use hundreds of litres of water a day, around 3.6 billion people – almost half of humanity – survives without access to safe, clean water.
More than an inconvenience, access to clean water is essential for human health, growth, wellbeing and safety, so much so that it has been recognized as a human right. A lack of it can be devastating: 1 million people die each year from lack of access to clean water and sanitation, and every two minutes a child dies from a water-borne disease. Women and girls are particularly affected when clean water is in short supply, often tasked with hauling water over long distances for communities, taking them away from education and exposing them to violent attacks or environmental threats.
Without intervention, the next few decades could make this a reality for more and more people worldwide.
With increasing demand from water-intensive industries like agriculture, rising temperatures and shrinking water reserves, there is a real threat that there won’t be enough water for humanity’s needs. It’s a problem that has had experts ringing alarm bells since before 2017.
With access to water so critical, and the problem so pressing, why isn’t water management demanding more global attention? Is anything being done to bring it into wider conversations about sustainability? On today’s trajectory, what’s the future of water?
The future of water as it stands
Two opposing trends paint a grim picture of the future. While global water use is set to skyrocket, global water supplies are already stressed.
To keep up with demand, experts predict that global water use will rise 20-50% as a result of human-driven climate change and overuse. So much groundwater has been pumped out of the earth that it has tilted the planet’s axis.
Heavy use of water is compounded by mismanagement: without policies, infrastructure and conservation efforts, existing water sources are being polluted, wasted or drained. Worldwide, different challenges in managing water are causing water stress for communities: from outdated infrastructure to conflict to overuse, it’s clear that alongside preserving our existing sources of water, understanding how we use what we have as a global community is just as important.
On this trajectory, developing countries will experience water insecurity over longer periods and with greater intensity, while supplies to major industries become strained. Over the next two decades, the increasing water stress will lead to a rise in related inequality, political instability, growing disease and potential sources of conflict in the most affected nations.
How can we change this trajectory?
Top priorities for cleaner, healthier water
As the global community attempts to address the challenge of building a more sustainable future, the issue of water has garnered more attention. While the subject of water has been historically absent from international sustainability efforts like the Paris Agreement, both COP27 and COP28, held in Dubai in one of the world’s most arid regions, recognized water as a priority.
As governments, institutions and communities examine their relationship with water and their future needs, there is an overall consensus that the battle for water must be fought on all fronts. As a complex issue with multiple causes, it calls for many solutions across government, education, technology and industry, all working in tandem.
Individuals – from ordinary households to decision makers at the helm of major corporations – must gain a better understanding of the impact of water usage and consumption. Awareness campaigns like the USA’s Save Our Water can help change behavior and influence change at the individual level. At the national level, governments can leverage policy to support better understanding and use of water management.
Backed by funding, recent innovations in water management technology have the potential to help restore and manage water. Emerging AI and big data technologies, in particular, hold much promise. A pilot project in the Ramotswa Aquifer between South Africa and Botswana, for example, is harnessing AI to analyze water levels in the drought-prone area, helping identify patterns and inform water management decisions. AI-assisted geospatial analysis is also helping smallholders in Ethiopia to identify shallow well locations, something that promises to significantly improve crop yield and access to drinking water.
While new technologies have the potential to help solve significant challenges, prioritizing cost-effective and culturally compatible solutions remains key. Obstacles like supply chain coordination, training and distribution also need to be overcome for effective implementation. Introducing innovative financial instruments like water credits (akin to carbon credits) could incentivize investment in water-related initiatives and contribute to sustainable water management practices worldwide.
Climate Adaptation and Mitigation
The issue of water is inextricably tied to the wider climate emergency. Meeting the Paris goals by reducing carbon emissions, implementing overall climate mitigation measures and adapting to today’s changes are a key part of addressing the water crisis and building safeguards for the future.
Climate adaptation measures can be integrated into water systems and infrastructure and are essential for building resilience to climate change-induced water scarcity and extreme weather events. This involves implementing strategies such as rainwater harvesting, enhancing water storage capacity, and improving flood management systems to mitigate the impacts of climate change and ensure reliable access to water.
More broadly, general climate mitigation efforts are fundamental for addressing the underlying causes of the global water crisis. By mitigating climate change, we can help stabilize weather patterns, reduce the intensity of droughts and floods, and safeguard water resources for future generations.
Water is a critical resource, and its future is in our hands. To help people access water today and ensure water security for tomorrow, the global community must recognize, invest and mobilize to create better water management practices and safeguard the precious water we have remaining. The task is complex, but vital. We must come together to solve the problems we face for a greener, more sustainable future.
05 AUG 2024
Game on! How sports can advance climate action
