Good COP, Bad COP?

The 2023 UN Climate Conference (COP28) wrapped up last week in Dubai with a landmark agreement that explicitly calls for "transitioning away from fossil fuels" for the first time in its history.

FGS Global’s COP team was there, providing trusted counsel and support for two UN special envoys for climate and leading companies, coalitions and philanthropic organizations. Get caught up on what happened at COP28, the outcome of negotiations and what comes next.

Looking forward, COP28 made clear that business, policy and civil society conversations outside of the negotiations are where action must happen.

• Public-private partnerships will drive progress. Companies across the global economy must partner with governments to deliver finance that bends the emissions trajectory downward and profits upward.

• Philanthropy has a growing role alongside government funding. COP28 saw interventions from major philanthropic organizations where outdated international models failed to sufficiently de-risk opportunities in emerging and established markets.

• Tolerance for misalignment of corporate action with policy is fading. Companies wishing to hide behind their peers or attempt to use smoke and mirrors in place of climate action will face material challenges as global corporate transparency efforts accelerate.

• The prize for leadership is growing, as are the dangers of perceived greenwashing. Corporates will require more than two weeks of annual engagement on climate a year, necessitating an investment of time, talent and resources.

• The focus now is implementation. Companies must contend with limited resources in a challenging global economy and face general skepticism for commitments without a clear roadmap. Ultimately, companies know what they must do to win in a cleaner global economy, but the time for pledging is over.

Companies now face a triple threat from an unrelenting surge in cyber-attacks, increasingly aggressive cybercriminals using AI to enhance their exploits and new federal disclosure requirements.

• From Dec. 18, SEC rules will require disclosure of cyber incidents within four days of identifying “material” impact. This means a single incident could result in filing multiple public disclosures, each one harming the victim’s reputation and stock price.

• Beginning in May 2024, mortgage providers, payday loan companies and other “non-bank financial institutions” under the FTC’s authority will be subject to more disclosure requirements, which will govern private companies.

• These new federal rules come on top of an existing smorgasbord of reporting requirements that prompt public disclosure of events in some 20 US states.

Managing this new reality will necessitate synchronized, strategic and consistent communications to customers, investors, employees and other key stakeholders – from the earliest moments of a suspected cyber incident.

Companies need to act now to ensure they are ready for this challenge by planning for a range of cyber-incident scenarios, preparing messaging and materials and pressure testing them regularly. Most importantly, they must involve communications considerations in every step of cyber crisis planning and response.

To learn more about how to manage this challenge, see this article by the FGS Global Cybersecurity and Data Privacy Practice.

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​The House Select Committee on the Chinese Communist Party (CCP)’s December 12 report frames a new, bipartisan vision of U.S.-China relations that is decidedly more confrontational than the Biden administration’s.

Some of the recommendations outlined within the strategic approach are non-controversial. Others could have sweeping impacts on the economies of both China and the U.S., as well as businesses and investors in both countries. 

Calling for the U.S. to “chart a new path that puts its national security, economic security and values at the core of the U.S.-PRC relationship,” the committee lays out extensive recommendations, divided into three pillars: 

1. Resetting the terms of the economic relationship – These recommendations seek to disentangle the U.S. and Chinese economies by removing PRC technology from U.S. government networks and supply chain, requiring additional disclosures by public companies of their ties to China and making changes to certain U.S. trade laws.

2. Stemming the flow of capital and technology – Asserting that China strategically exploits its economic connections with the United States to advance its military, the committee recommends steps to limit both U.S. investment in China in key sectors and Chinese investment in the U.S.

3. Investing in technology and supply chains at home – This pillar outlines measures to counter the CCP's “economic warfare campaign” and strengthen America's economic and strategic position. It calls for enhancing collaboration with emerging technologies allies and expanding workforce training and development programs to attract talent.