For the last decade, McKinsey has played a role in the annual United Nations Climate Change Conference of Parties (COP). Our involvement has included convening stakeholders focused on addressing climate change at our events, publishing independent research to help inform net-zero strategies, and sharing climate insights relevant to industries across the public and private sectors. We centre all our contributions around how the world can meet the objectives of the 2015 Paris Agreement, which continues to be the mission and purpose that drives our global Sustainability Practice.
Whilst we are a small part of what COP, its host country and its leaders do, our presence reflects our mission to help clients, companies and countries in the energy transition. Our COP approach is one part of our firm's aspiration to be the largest private-sector catalyst for decarbonization. We support global leaders in reducing emissions, ensuring the affordability of energy and materials, providing reliable and secure energy systems, and strengthening competitiveness for companies and countries.
In 2023, we decided to extend our support to COP28 by providing pro-bono consulting services to the UNFCCC-approved organizing entity. We worked with the COP28 organizers to develop factual baselines for decision-makers, support the development of key COP28 projects, and provide project management across a range of vital climate initiatives during a critical period for the transition.
Working on a global event as significant as COP necessitates the highest standards of compliance, a challenge McKinsey is committed to meet. Before deciding to undertake client work linked to any COP, our Client Service Policy mandates a deep risk and conflicts of interest review. This policy applies globally, across all sectors, and in the case of COP is enhanced by additional sustainability-focused policies. Since 2018, we have spent nearly $1 billion on strengthening our risk-management teams, capabilities and accountability mechanisms. Any COP-linked client service is approved by our Firm’s two most senior risk committees, chaired by independent Senior Partners and Leaders from our Legal, Risk and Communications functions. McKinsey does not take a role in country-to-country negotiations with countries or the COP President, nor do we provide marketing or event support.
We understand the scrutiny linked to our work with high-emissions industries may raise doubts about our presence at COP. We believe that working with higher-emitting industries during this crucial transition period is critical. We serve high-emissions companies and sectors because that’s where the emissions are. We also believe that a successful net-zero transition is defined by four interdependent objectives, rather than just one: emissions reduction, affordability, reliability, and industrial competitiveness. This is the foundational vision that guides our client service linked to COP. For firms like ours, who have been in operation for nearly 100 years, we too, are going through our own transition. Sustainability is now a significant client service priority globally and we are continuing to innovate to support organizations from all sectors achieve net zero as the transition continues.