30 January 2025
BusinessGreen
Op-eds
By tackling air pollution, business leaders can drive sustainable
growth while contributing to a healthier, less polluted planet, write Clean Air
Fund's Jane Burston and ReNew's Vaishali Nigam Sinha
Air
pollution isn't just an environmental crisis - it's a multi-billion-dollar
business challenge that demands urgent action from leaders across every sector.
The World Economic Forum's latest Global
Risks Report highlights air pollution as a
critical yet under-addressed issue with far-reaching implications for public
health, economic stability, and environmental sustainability.
The cost of air
pollution is staggering. It claims millions of lives, strains healthcare
systems, hampers economic productivity, and accelerates climate change. For
businesses, this represents not just a risk to be mitigated, but an opportunity
to drive meaningful change. Tackling air pollution offers a chance to unlock
significant economic, health, and
climate benefits, all while contributing to a
more sustainable future.
Air pollution: the scale of the problem
The climate crisis, human health and the economy are
inextricably linked. Research from UNECE reveals that air pollution exacerbates climate change,
destabilises ecosystems and reduces global crop yields. Invisible dirty air
particles penetrate our lungs, heart, blood and brain, leading to more people
suffering from chronic health conditions like asthma, dementia, and cancer.
These impacts pose a significant threat to businesses and the global economy. There is
mounting evidence showing that dirty air is bad for business. The World Bank estimates that the
health damage caused by air pollution costs $8.1tr a year, equivalent to 6.1
per cent of global GDP. It also has a tangible impact on the workforce, with
approximately 1.2 billion work days lost globally every year according to the OECD. By 2060 this could reach 3.8 billion days.
These health and
economic costs are felt around the world. For example, in India air pollution costs Indian
business about $95bn every fiscal year. This cost
is equal to 150 per cent of India's healthcare budget. In the Bulgarian
capital, Sofia, a survey of highly skilled workers revealed that over half (58 per cent) of the respondents
attributed dirty air to increased sick days, and over two thirds (68 per cent)
said they limit their working hours because of the quality of the air in the
city.
Business
leaders have the power to change the story. By engaging in efforts to reduce
air pollution, they can help improve the climate, public health, and the
economy.
Business as part of the solution
Use
of fossil fuels is the main driver of pollution. It's important to recognise
that all businesses contribute to air pollution in some form -whether through
supply chains, office buildings, transport, employees, data systems, or
manufacturing. In fact, commercial activities, such as energy production,
agriculture and transport, contribute to around 40 per cent of particulate
matter (PM2.5) emissions.
The
Alliance for Clean Air,
a coalition of 21 multinational companies that are dedicated to improving the
state of the air we breathe, brings together leading businesses to help them
realise ESG and sustainability targets through reducing air pollution. It helps
businesses commit to measuring and reducing value chain air pollutant
emissions, investing in innovation and working with policy-makers and peers to champion
the social, economic and climate benefits of tackling air pollution.
Business leadership on clean air
As
the Global Risks Report underscores, every sector has a role to play in
combating air pollution. By adopting strategies to reduce air pollution,
businesses can align their operations with broader climate goals, improving
both the planet and their bottom lines. Policymakers play a vital part in
strengthening regulatory frameworks, especially local and national regulators
who are well placed to drive action on pollution and support risk preparedness
in the years ahead.
ReNew
and the Clean Air Fund are leading by example. As one of India's largest
renewable energy companies, ReNew is advancing clean energy solutions while
tackling air pollution through sustainable practices and innovation. The Clean
Air Fund supports the activity of leading businesses to measure air pollution emissions
across supply chains and reduce air pollutants.
Our
experience shows that businesses are well-positioned to tackle dirty air and
can leverage the same approaches used to reduce greenhouse gas emissions to cut
air pollution - often simultaneously. Now is the moment for additional
businesses to step up, challenge outdated practices, and embrace solutions that
reduce air pollution.
By
committing to address air pollution, business leaders can drive sustainable
growth while contributing to a healthier, less polluted planet.
Jane Burston is CEO of
Clean Air Fund, and Vaishali Nigam Sinha is co-founder of ReNew.
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