THE CHANGE OF CORPORATE PURPOSE AS AN INNOVATIVE TOOL TOWARDS CLIMATE NEUTRALITY

The urgency and necessity for human society to limit global warming is clear. For quite some time now, the European Union has played a leading role in countering this crisis by setting a climate neutrality goal for all member countries to be achieved by 2050 so as to limit global warming and help achieve the goals of the Paris Agreement.

In addition to institutional direction and guidance, the commitment of the business community is indispensable as a key factor for achieving these goals. To demonstrate the private sector's willingness to participate, initiatives have sprung up around the world, from the UNFCCC's Private Sector Initiative (PSI) to the international "Race to Zero" campaign.

To achieve a level of involvement that can make a difference, it is proving increasingly important to effectively stimulate the business community. For this, a change that can institutionalize business action towards climate neutrality alongside profit is needed.

This can be achieved through the introduction of a climate neutrality statute into each Corporate Purpose. This integration of a specific law within the company, approved by shareholders and protected in the Articles of Incorporation, can follow a clear and unequivocal direction to preserve climate balances, assigning a new and innovative mandate to the current and future management of companies.

Specifically, CO2alition member companies formally commit to embed this purpose within their bylaws through the adoption of the legal status of Benefit Corporation or other substantial changes, taking action to report annually on their actions and ensure progress toward the established goals.

The transition to a zero-emissions economy is an urgent challenge. But it also proves to be an opportunity for companies to contribute at the forefront of the great environmental and social challenges of the 21st century and to build a better future for all.