The Alarming Rate of Species Extinction
At a recent sustainability forum, an exhibitor highlighted that over 70% of the planet’s species have gone extinct during their lifetime. This statement left me both intrigued and concerned.
While it’s challenging to pinpoint the exact number of extinctions in the last 50 years, it’s evident that we’re facing a biodiversity crisis driven by human activities. Since the Industrial Revolution, the Northern Hemisphere has largely benefited from the Southern Hemisphere’s natural resources, which hold most of the world’s riches. However, all nations must work together and with urgency to conserve biodiversity and maintain our quality of life, as we’re halfway through several sustainability commitments set at the United Nations Climate Change Conference (COP).
Ambitious Goals and Uneven Progress
At COP26 in Glasgow, UK (2021), and COP29 in Baku, Azerbaijan (2024), ambitious goals were set, such as reducing carbon emissions by 45% and increasing climate financing to $300 billion annually for developing countries by 2035. However, some countries are advancing in their commitments, while others with high impact, like the United States, are moving backward. The U.S. withdrew from the Paris Agreement (2015 climate change treaty) and recently revoked methane emissions tariffs, along with oversight of offshore drilling, according to the APCO Climate Intelligence Report.
The Role of Businesses and Governments
Businesses and governments must choose between long-term sustainability and short-term destruction, as nature cannot be compartmentalized according to different national perspectives. We share one planet, and all depend on it. Therefore, companies need to work consciously and collaboratively with their governments to achieve and meet sustainability goals immediately.
Artificial Intelligence: A Double-Edged Sword
Artificial intelligence presents a challenge due to its high energy consumption but also offers opportunities for optimization. Two major challenges remain:
- Climate Finance. COP26 required $1.3 trillion annually, but now we need $5 to $7.5 trillion per year, which is about 7% of the global GDP. These resources compete with global defense and military budgets, so humanity must decide where to invest our money—to save or destroy the planet.
- Climate Justice. Around 700 million people lack access to energy, and demand is rapidly increasing. Solar energy is gaining traction in Latin America, led by Brazil, Chile, and Mexico, but the challenge remains as temperatures continue to rise. Opportunities exist, but we need alignment between public and private industries on energy conservation and alternative energy sources. Simultaneously, we must educate the public as conscious consumers facing a common challenge: insufficient infrastructure and energy shortages.
Mexico’s Opportunities and Responsibilities
Mexico has significant roles to play. Sustainability Information Standards (NIS) will become mandatory in January 2025 for companies subject to financial reporting standards (NIF), requiring them to have an ASG (Environmental, Social, and Governance) compliance team and communication plan for all stakeholders. This presents an opportunity for Mexican companies to establish themselves as sustainability leaders, enhancing their reputation, competitiveness, and acceptance in international markets.
The question remains: are we pursuing ASG initiatives out of conviction or convenience, with clear strategies and incentive-linked objectives in a context where companies and their leaders must establish clear strategies with linked objectives and measurement systems.
Key Questions and Answers
- Why should consumers care about sustainability? Consumers are increasingly interested in these topics, and there’s a premium for products prioritizing sustainable attributes alongside quality and price.
- What kind of leadership is needed? We require genuine transformative leadership, with leaders prioritizing long-term goals over short-term ones, focusing on what’s relevant rather than urgent, and maintaining a human-centered vision.
