Radical decarbonisation and system transformation. These will be the core focus at this year’s UN Climate Change Conference COP28.
COP28 (Conference of the Parties, 28th Session) is taking place in Dubai, United Arab Emirates (UAE), from the 30th of November until the 12th of December. The event brings together 70,000 government officials, scientists, activists, and other distinguished guests from 198 countries.
Component Sense is deeply invested in sustainability and mitigating the escalating climate crisis. Our business is near net zero, and we plan to be officially planet-positive by 2025. On a personal level, we want to leave a flourishing world for future generations. Professionally, we know how environmental factors affect the electronics supply chain and want to reduce electronic waste produced by our industry.
This blog will unpack COP28 to uncover the critical information for you. We will then explore how this milestone event may impact electronic manufacturers in these uncertain times. Here are the main talking points:
🔹 The importance of COP28
🔹 Controversies surrounding 2023's event location
🔹 How COP28 may affect electronic manufacturers
🔹 Ways your business can withstand climate-related legislation and emergencies
Let us get started!
The importance of COP28
To say there is a lot on the line at this year’s COP28 is an understatement. The Paris Agreement saw 198 nations agree to limit global temperature rises to 1.5C above pre-industrial levels, as this is the only way to prevent detrimental environmental impacts. COP28 will lay bare how far off track we are in reaching this goal. In fact, July 2023 was declared the hottest month on record (it is important to acknowledge that El Niño had a role to play).
The only way to ensure the world minimises global warming is to tackle our climate and biodiversity crises simultaneously. It can be helpful to break this year’s event down into four key paradigm shifts:
- Following up on agreements at COP27 around financing and supporting the world’s poorest and most vulnerable communities
- Fast-tracking green energy transition to meet 2030 emission targets
- Ensuring the most inclusive UN Climate Change Conference ever
- Prioritising nature, people and livelihoods at the core of climate action
UN Climate Chief Simon Stiell stated that world leaders must “stop dawdling and start doing.” Without significantly cutting emissions and moving to a circular economy, we edge closer and closer to catastrophe. Embracing the UN Sustainability Goals is crucial to moving in the right direction.
Controversies surrounding 2023’s event location
It is fair to say that COP28 is a hot topic in more ways than one. This year’s host nation, UAE, is one of the world’s top ten oil-producing countries. Given the huge focus on moving away from fossil fuels and the reliance of emerging economies on coal, oil and gas, COP28 has been marred with controversy before it even started.
Leaked documents obtained by the Centre for Climate Reporting and the BBC (British Broadcasting Corporation) indicate that the UAE plans to use COP28 as a stage to pitch oil and gas deals to foreign governments. Despite this — and the fact that the head of COP28, Sultan al-Jaber, is also the president of UAE’s state oil company — it is essential to note that COP representatives say leaked documents and a conflict of interest are inaccurate and unverified.
Two hundred nations agreed to phase down coal power at COP26. However, the needle has barely shifted so far.
How COP28 may affect electronic manufacturers
With so much at stake, electronic manufacturers certainly do not escape being impacted by COP28. Potential changes from this year’s event to reduce global warming and achieve net zero by 2050 could have profound implications for our global electronics supply chain. No one knows what will happen as a result of COP28, but here is what we anticipate.
Potential new climate regulations
Over the last decade, many sustainable regulations have already been implemented worldwide. From the European Green Deal that saw regulations targeting various sectors within the EU to Canada introducing a federal carbon pricing system and New Zealand banning single-use plastic bags, some of these initiatives impact the electronics industry more than others.
COP28 could inspire new government mandates to meet strict emission reduction targets. These new rules may force electronic manufacturers to change processes and utilise cleaner technologies. The cost of compliance may increase for OEMs (original equipment manufacturers) and EMSs (electronics manufacturing services) as they will need to invest more in renewable energy and carbon reduction than ever before.
On the flip side, COP28 in UAE will encourage international collaboration. This gathering may result in standardising operational, exporting and importing rules for global electronic manufacturers, with potential financial incentives for those running a sustainable supply chain model.
Increased transparency
“When countries have solid data, they can make tailored, effective, and realistic climate policies, develop plans, and assess the support they need.” This quote by Candida Rodriguez from the UN Resilience and Sustainable Development Programme highlights the need for businesses and governments to be transparent when reporting climate data.
Especially given the size of some electronic manufacturers, organisations may soon be under pressure to trace and disclose the environmental impact of their operations. Regulations may include further reporting on the following:
- Use of raw materials
- Energy usage for manufacturing processes
- Emissions created by transporting components
- E-waste disposal
The UK Climate-related Financial Disclosure (TCFD) Regulations are an example of pressure already being put on companies to disclose climate-related financial information, and making this data public could impact investor decisions and public perception.
Increased demand for clean technologies
Put simply, clean technologies aim to reduce environmental impact. Examples include more energy-efficient products, solutions for reducing waste, or even machinery that makes it easier for society to harness renewable energy. The world already focuses on eco-tech, but COP28 could see more investment in clean technologies.
For electronic manufacturers, you can look at this shift in several ways. On one hand, focusing on a circular economy may require companies to produce more reusable or recyclable products. To a certain degree, EPR requirements are already pressuring manufacturers to be responsible for the environmental impact of products throughout their entire lifecycle.
On the other hand, the need for more clean technologies due to COP28 could see an increased demand for components required for these opportunities. There is always a financial silver lining to this kind of scenario.
Ways your business can withstand climate-related legislation and emergencies
Thankfully, there are steps your business can take to withstand legislation changes that may transpire after COP28, as well as some of the future climate supply chain disruptions that could be inevitable. At Component Sense, we know that environmentally friendly electronic manufacturers are more robust and likely to weather any storm.
Carry out a climate risk assessment
No matter the size of your business, a climate risk assessment can be a vital tool for evaluating environmental hazards and threats. For electronic manufacturers, this mainly includes assessing the resilience of your supply chain.
Climate risk assessment findings can be valuable information that inspires needed change within your organisation. Some of the results could suggest changes, including:
- Supply chain diversification
- Choosing renewable energy sources
- Insurance and risk transfer
- Scenario planning and risk modelling
Redistribute your excess and obsolete stock
Component Sense’s business goal is to lead electronic manufacturers toward zero waste. Our efforts include redistributing excess and obsolete (E&O) component stock for our customers.
Electronic waste (e-waste) contains harmful toxins like lead and mercury. E&O stock adds to a broader problem of e-waste often being dumped in less developed countries. Here, these toxins pollute the environment and harm the locals.
Not only does redistribution make sustainable sense, but it is also financially beneficial! By redistributing your excess, you generate effortless cash flow to better prepare for future economic challenges. Component Sense has three leading solutions when it comes to excess redistribution:
Reduce carbon emissions
A massive part of minimising global temperature increases is reducing carbon emissions. Once you have lowered emissions as much as possible, offsetting what you pollute into the atmosphere is vital.
As more and more legislation passes to penalise carbon emissions and the general public favours businesses implementing sustainable practices, cutting and offsetting emissions helps with global climate goals and can positively impact your bottom line.
Component Sense is proud of our carbon-offsetting efforts with our reforestation partner, One Tree Planted. We plant two trees per order and have planted 11,000 native trees to date. Plus, we partner with carbon-neutral shipping companies.
Embrace sustainability with Component Sense
The UN Climate Change Conference: COP28 in Dubai is crucial to generating global action to reduce the harmful effects of climate change. This set of meetings must generate progress, or we will not meet our goals in the Paris Agreement. You can learn more about the schedule specifics for COP28 on their website.
Electronic manufacturers must play their part in creating a circular economy. A large part of this is minimising waste. Speak to a member of the Component Sense team today about ways to streamline your excess and obsolete stock: