Advancing a G20 Sustainability Agenda

The Group of Twenty (G20), comprising 19 countries, the European Union, and the African Union, plays a vital role in global economic cooperation. Brazil held the 2024 G20 presidency and placed particular focus on amplifying the voice of the Global South in international decision-making. 

G20 leaders gathered in November in Rio de Janeiro, Brazil, for the G20 Summit, reaffirming the critical need for inclusive multilateralism and bold action on global challenges such as inequality, climate change, and sustainable development. Their commitments, rooted in the theme “Building a Just World and a Sustainable Planet,” support the United Nations Secretary-General’s call for systemic reforms and accountability to ensure that no one is left behind.

The outcomes of the Summit, outlined in the G20 Rio Declaration, call for several key actions:

• Joint stewardship of the global economy to address pressing global challenges
• Tackling inequality and promoting social inclusion
• Advancing sustainable development and energy transitions
• Reforming global governance to better reflect today’s realities

As the world grapples with geopolitical shifts, economic challenges, and climate crises, this Declaration can offer insights for global CEOs looking to navigate an increasingly complex environment. 

The Declaration emphasizes the need for multilateral cooperation to ensure economic stability. For global CEOs, this means reassessing supply chain dependencies, diversifying market exposure, and focusing on risk management frameworks.

The G20 Summit also underscored the importance of economic resilience in the face of rising global uncertainties—spurred by economic volatility, inflationary pressures, and geopolitical instability. CEOs should consider this a call to action, prioritizing strategies that enhance the flexibility and agility of their operations.

Throughout the year, the private sector has provided input to the G20 through the Business 20 (B20), the most prominent of the multiple G20 Engagement Groups. The goal of the B20 is to represent the interests of the business community, foster public-private dialogue and deliver policy recommendations to the G20. Within the final G20 declaration, 15 of the 24 recommendations from the B20 were fully incorporated. 

Enabling an Integrated Energy Transition 

Sustainability is no longer an optional area of focus—it is a strategic growth imperative. The G20 Rio de Janeiro Declaration has placed an urgent emphasis on achieving climate goals, aligning with the Paris Agreement, and accelerating the transition to a green economy. This includes promoting the adoption of clean technologies, investing in renewable energy, and integrating circular economy practices. With approximately 80% of global emissions originating from G20 economies, the stakes are high. Action within these nations is critical to closing the emissions gap and driving global climate progress.

Alongside the G20 Summit, the UN Global Compact brought the voice of business to the table to identify opportunities for both public and private action on key transitions and to help shape a policy agenda for key forums in 2025, including COP30 (Brazil) and next year’s G20 (South Africa).

G20 countries also govern nearly half of the world’s coastline and are home to 60% of the world’s population. The global economy relies on the ocean, with a value of key ocean assets estimated at USD $24 trillion — equivalent to 3–5% of global GDP. Yet, the ocean has been historically overlooked in global discussions, often relegated to a secondary position on the international agenda. 

Oceans 20 prioritizes the ocean in the G20 agenda. It focuses on economic, environmental, and social sustainability through cross-sector collaboration. As one of six co-conveners of Oceans 20, the UN Global Compact and partners released the first Oceans 20 communique outlining ten priority themes and six actionable recommendations that promote a sustainable ocean economy, energy transition, food security, marine conservation, strengthened governance, and increased ocean finance.

The United Nations Global Compact’s roundtable on energy transition, held on the sidelines of the G20 summit in Rio de Janeiro, highlighted critical actions for global business leaders committed to advancing a sustainable, equitable, and economically viable energy transition. 

The roundtable invited CEOs and business leaders to take forward the recommendations of the recent study on Policy Enablers for Private Sector SDG Action and to discuss how to enable integrated transitions - across energy, decent work and protection.

The key takeaways underscore how businesses can integrate energy transition goals into their long-term strategy, with emphasis on inclusivity, innovation, and policy collaboration.

Energy Transition as an Industrial Ecosystem Approach

One of the central themes emphasized during the roundtable was the need for an industrial ecosystem approach to the energy transition. This requires businesses to align industries, policies, and technological innovation to ensure sustainable environmental, economic, and social benefits across the entire value chain. For global CEOs, this signals the importance of taking a systems-thinking approach in which energy transition strategies are integrated throughout all aspects of their operations—ensuring consistency and alignment with broader sustainability and climate goals.

This ecosystem approach means that CEOs must not only innovate within their own industries but also collaborate with partners in sectors like transportation, construction, and manufacturing.

Financing the Transition: Closing Gaps

Financing the energy transition emerged as a pressing concern, particularly in markets like Brazil. CEOs should pay attention to the need for mechanisms that close the access and price gaps between energy supply and demand. As many regions face the challenge of mobilizing sufficient capital for green projects, global CEOs should prioritize financial instruments and partnerships that can bridge these gaps, such as green bonds, sustainable investments, and development funds tailored for the energy transition.

Additionally, companies need to advocate for the removal of inefficient fossil fuel subsidies, which distort energy markets and deter investment in renewable energy. Corporate influence on policy will be key to creating the kind of regulatory environment that attracts long-term investment into low-carbon technologies.

The Importance of a Just, Inclusive Energy Transition

The roundtable underscored the importance of ensuring that the energy transition is inclusive and equitable. For CEOs, this means ensuring that the transition does not leave vulnerable communities behind. As businesses pursue decarbonization, they should integrate social policies that address the labor market implications of transitioning to greener industries. This includes promoting decent work, particularly in renewable energy sectors, and ensuring fair labor standards through social dialogue with governments and workers’ organizations.

Furthermore, companies should invest in workforce reskilling and development programs to ensure that employees are equipped to thrive in the green economy. Companies leading in sustainability must take active roles in shaping social policies that align with both environmental goals and equitable workforce development.

Building Regulatory Frameworks for Sustainability

The roundtable participants highlighted the need for clear, stable regulatory frameworks to guide the energy transition. CEOs should advocate for and work alongside governments to build regulatory structures that provide long-term clarity for investors in green energy. This includes policies that encourage innovation while reducing the financial risks that currently deter investments in renewable energy.

The private sector’s role in this process is to push for balanced regulatory frameworks that foster both innovation and sustainable growth. For CEOs, this means engaging in policy dialogues, collaborating with industry bodies, and supporting government efforts to phase out fossil fuel subsidies and promote renewable energy alternatives.

Technology and Innovation as Drivers of Change

Innovation and technology are at the heart of the energy transition. Business leaders must recognize that the private sector is driving much of the progress toward decarbonization through innovation, particularly in areas such as renewable energy technologies, energy storage solutions, and smart grids. Companies are not just adopting clean technologies; they are helping to shape the future of energy.

Moreover, data sharing and the use of digital tools are becoming increasingly vital for accelerating the energy transition. CEOs should invest in digital transformation strategies that support energy efficiency, real-time data analysis, and predictive maintenance in energy systems. This also includes encouraging interoperability and transparency across the industry, which will ultimately drive greater efficiency in the global energy transition.

Social Dialogue and Labor in the Green Economy

A core takeaway from the roundtable was the emphasis on social dialogue as part of the energy transition. The International Labour Organization (ILO) has stressed the importance of including workers’ rights and protections in energy transition policies. For CEOs, this means taking a proactive approach to ensure that labor standards are maintained during the transition. This can include establishing mechanisms to provide fair compensation and support job retraining initiatives.

Workforce development is a key element in ensuring that energy transition policies lead to a just outcome. CEOs must prioritize reskilling initiatives, especially in regions heavily reliant on fossil fuels, and ensure that their companies foster inclusive growth in green sectors.

Local Context and Long-Term Planning

The energy transition is a marathon, not a sprint. As the roundtable discussion emphasized, the energy transition must be approached with long-term planning, as each region faces unique challenges. For Brazil, as one example, the country’s significant renewable energy potential—particularly in offshore wind and solar—needs to be harnessed in a way that integrates environmental, economic, and social factors.

Global CEOs must consider how their operations can adapt to local contexts, particularly when entering emerging markets. These markets often present significant opportunities but also pose challenges such as infrastructure gaps, regulatory uncertainty, and access to finance. A long-term commitment to these regions, coupled with localized strategies, will be critical in shaping successful transitions.

Role of Ports and Infrastructure in Energy Transition

Finally, ports were identified as critical infrastructure for the energy transition, particularly for offshore wind and green fuel industries. In Brazil, efforts are already underway to modernize ports to support these industries. CEOs with operations near major port cities should consider how they can contribute to reducing emissions in the shipping and logistics sectors.

Innovative port infrastructure could play a key role in accelerating renewable energy deployment. Companies involved in maritime logistics, energy production, and supply chain management should explore ways to contribute to green port initiatives, such as reducing carbon emissions from shipping and supporting the transportation of renewable energy technologies.

The key takeaways emphasize the importance of:

• Collaboration across sectors to align industries, policies, and innovations.
• Advocating for strong regulatory frameworks that support long-term investment in renewable energy.
• Supporting a just, inclusive transition through social dialogue, workforce reskilling, and fair labor standards.
• Harnessing innovation and technology to drive energy efficiency and decarbonization.
• Ensuring long-term, localized planning that addresses specific regional needs while advancing global sustainability goals.

As the world looks to the largest economies to lead the charge on climate action, CEOs must leverage their influence to foster inclusive, just transitions that create long-term value for both people and the planet. Through collaboration, innovation, and commitment, business leaders can help ensure that the transition to a green economy is both equitable and sustainable, helping to close the emissions gap and achieve the SDGs.