The SB62 gathering in Bonn this June marked the first formal UNFCCC meeting of 2025 and an important milestone on the road to COP30 in Belém. At COP30, countries are expected to submit updated Nationally Determined Contributions (NDCs), setting out targets that must match the urgency and scale of climate action required.
Through our new project Beyond NDCs: Accelerating transition plans by scaling climate solutions, led by the Exponential Roadmap Initiative in collaboration with IKEA and Unilever, we are exploring how governments and businesses can work together more effectively. By aligning national climate targets with corporate strategies, supported by clear policy frameworks and sound business incentives, we can help speed up the shift to a resilient and zero-emissions global economy.
During the Bonn sessions, we spoke with Dr. Alexander Schmidt, ERI’s Project Lead, and Alexis McGivern, Head of Stakeholder Engagement at Oxford Net Zero, about the vital role that companies can play in supporting and delivering on national climate goals. Let’s start by setting the scene:
There’s a gap between where we need to be scientifically to ensure good living and business conditions – and where current or projected NDCs will take us. But even if we set that aside, NDCs are just targets. What we need are real transition plans and implementation. That’s why ERI wants to open the conversation with the business community – because they’re the ones who will ultimately need to realise the targets that nations set. Businesses must both cut emissions and scale solutions. So the question is: how do we signal to governments that the business sector is ready, willing – and would benefit from – more ambitious NDCs and transition plans?
Why does this matter for business?
Supply chain resilience depends on national infrastructure.
Companies operating globally need supply chains that can withstand physical climate risks – and that means public infrastructure and policy must be fit for a warming world. As Alexander puts it:
If my factory is in Vietnam or Bangladesh or Mexico and under threat from climate impacts, I have to do something about it – but I won’t get there if the physical or policy infrastructure in that country isn’t fit for purpose.
NDCs in one country can have global impact.
Clear, ambitious national targets can serve as a roadmap for companies operating domestically – and inspire action globally, especially for multinationals. Alexis says:
If there’s a clear NDC, clear sectoral pathways and clear expectations – then we see the corporate sector responding, and often, businesses take cues from other jurisdictions – peer-to-peer learning isn’t limited by borders.”
A platform for shared progress
The NDC Project serves as a platform for constructive dialogue between business and government. It brings together leading companies to engage directly with policymakers on the conditions needed to accelerate climate action — and on what the private sector is prepared to contribute.
When effectively designed and implemented, Nationally Determined Contributions (NDCs) can become a powerful mechanism for aligning climate ambition across sectors and borders. They can help create the right incentives for companies to invest in climate solutions and ensure that those leading the way are supported and rewarded. For this to happen, NDCs must be grounded in science-based pathways and accompanied by clear, actionable plans that translate ambition into real-world change.
