Climate action is urgent, particularly in the Gulf. The Middle East and North Africa are already the most water-stressed regions of the world, and temperatures could be as much as 4°C warmer by 2050. Unless we act now to curb heat-trapping emissions, the cities many of us call home might be uninhabitable by 2100.

Businesses in the region understand that climate change is a serious risk. Many are already adopting climate-smart practices, such as switching to renewable energy sources and conserving water. But we are not moving forward fast enough. We must be more ambitious, adopt more sustainable practices, and play a decisive role in restoring harmony with our planet.

To date, more than 130 countries, covering 83% of global emissions, have acknowledged this urgency by committing to net-zero emissions targets by 2050. The United Arab Emirates is the first Middle East and North African nation to aim to achieve climate neutrality by 2050.

This is a collective effort. To get to the point where we stop adding more heat-trapping gases to the atmosphere, families, businesses, and governments must all play their part.

Many corporations have already made great strides in reducing their own direct emissions (Scope 1) and those associated with the energy they consume (Scope 2), but Scope 3 is the big one. It relates to all the emissions of a company’s value chain, from suppliers of materials, transport, logistics, and services, to how end customers consume and dispose of a company’s services or products.

This is a challenge of a different order. For most companies, Scope 3 represents more than 90% of total emissions. A thorough audit of value-chain emissions will help companies identify areas where they can make the biggest impact. Actions such as switching to sea transport, which has lower emissions than air freight, can help reduce the Scope 3 emissions of third-party logistics providers–a significant opportunity for decisive climate action.

While achieving net zero is the main reason companies must tackle Scope 3 emissions, regulation is another. From 2025, companies in Europe, including those based elsewhere with European operations, will be required to report on their Scope 3 emissions. Several US bodies are also working on Scope 3 regulations. The rest of the world is likely to follow suit.

So, it will pay to be ahead of the game on Scope 3, even though it will bring enormous changes to the way companies operate. To date, corporations have focused on reducing their direct carbon footprints. Scope 3 requires them to take responsibility for emissions that are not under their direct control. It will require persuasion and collaboration, clear rules and measuring standards, and far better data than we have now.

Addressing Scope 3 establishes new avenues of collaboration with suppliers, new relationships with customers, and even new partnerships with companies outside their industries or value chains. Collaboration is the new name of the game, and it is good for business.

Every business will have its own particular set of challenges when dealing with Scope 3. But through collaboration, much progress can be achieved.

COP28 is a great opportunity to come together and forge stronger local alliances to find solutions to climate change. A strong showing of business leaders at COP28 will also give the private sector a platform to be heard because, in addition to greater collaboration between companies, we also need to work more closely with the UN and with governments to create the right enabling frameworks, policy incentives, and instruments to advance toward net zero.

Sanda Ojiambo is the CEO and executive director of the UN Global Compact.

Patrick Chalhoub is the group president of Chalhoub Group.

More must-read commentary published by Fortune:

• The Marvels’ box office flop marks the end of an era for the studio’s winning formula–and the beginning of a new one for Hollywood’s workers
• Bosses thought they won the return-to-office wars by imposing rigid policies. Now they’re facing a wave of legal battles
• A new global study shows the real reason the West is still one step ahead of Asia when it comes to the digital economy–and it’s not technological prowess
• Melinda French Gates: ‘It’s time to change the face of power in venture capital’

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.