Big business can do more on climate
Since governments around the world aren’t doing enough to stop climate breakdown, or even meeting the targets they’ve already committed to, the private sector has a responsibility to work with governments and move the market away from fossil fuels and environmental destruction to renewables and protection of natural spaces.
Read a round up of the headlines:
“Fortunately, some in business — though clearly not enough — are prepared to take a longer-term view than the politicians. The recent announcement by Yvon Chouinard that he and his family were giving away Patagonia, the company he founded, so that all its future profits could be used to fight climate change and protect undeveloped land around the world is clearly an extreme example. It is in keeping with the maverick approach of Chouinard, who always characterized himself as a reluctant businessman. Interviewed at the time of the move, Chouinard expressed the hope that it might “influence a new form of capitalism.” But in truth, he and his colleagues have already encouraged many other businesses to take the environment seriously.”
Forbes, Lack Of Political Will Means Business Must Show Lead On Climate Change
“Across the Biden Administration, and around the world, government officials have increasingly focused their attention on the private sector—treating companies not just as entities to regulate but also as core partners. We “need to accelerate our transition” off fossil fuels, says Brian Deese, director of President Biden’s National Economic Council. “And that is a process that will only happen if the American private sector, including the incumbent energy producers in the United States, utilities and otherwise, are an inextricable part of that process—that’s defined our approach from the get go.”
…corporate progress is unlikely to add up to enough without clear policy that incentivizes good behavior and/or punishes bad behavior. “To catalyze business, we need governments to lead and set strong policies,” says Lisa Jackson, vice president of environment, policy and social initiatives at Apple and a former head of the U.S. Environmental Protection Agency. “That’s just what the science says.’”
Time, Planet Earth’s Future Now Rests in the Hands of Big Business
“While government action typically dominates these talks, political paralysis and public pressure are pushing companies to step up with their own emission pledges — and money to help poorer countries bearing the brunt of climate change’s impacts…
About a third of the world’s top 2,000 public and private companies have committed to zeroing-out their emissions by 2050, according to Accenture’s research. But the firm found that 93 percent of them are on track to miss their targets unless they start moving faster.”
Washington Post, In a shift, U.S. says companies are pivotal to climate talks’ success
“While small to mid-sized companies make up roughly 90% of businesses worldwide, most global emissions can be tracked to a small number of the world’s largest companies. However, no small business is an island. Everything is connected. The beefy corporations with large value chains use smaller firms for things like raw materials, packaging, production, and marketing. “All of those things have a carbon footprint,” says Rob Fisher, the head of KPMG’s IMPACT group, which focuses on environmental, social, and governance (ESG) criteria, and sustainability.”
Time, How Small Businesses Can Have a Big Impact in the Climate Fight
“In order to help companies of any size take climate action, a group of industry and academic partners recently launched the 1.5°C Business Playbook. It is a framework for enterprises to identify value opportunities in their own business and prepare for a transition to this new economy.
Small, medium and larger companies may find it useful both for strengthening their own strategy and to help in engaging suppliers and setting requirements. Companies with advanced climate strategies that have already joined sector climate initiatives can use it to benchmark their approach and raise ambitions. In this capacity, the playbook will help to establish a clear climate strategy, define targets aligned with science, set requirements for suppliers, and align supply chains and value propositions with a 1.5°C ambition.”
We Forum, 4 ways for companies to take effective climate action
“Globally, we need to develop new technologies to slow and reverse greenhouse gas emissions. Fortunately, in the US, the IRA provides substantial incentives and de facto industrial policy to do so. We have to turn our net-zero pledges into reality. While many companies have made pledges in good faith, implementation plans are still mostly poorly formed.
Recent Edelman research suggests while the public thinks that business can have a big impact on climate, 64 percent of people in 14 countries think that business is 'mediocre or worse' at keeping our climate promises, with coal, private equity, fashion, fast food, and oil and gas judged least likely 'to do what is right in addressing climate change.' We will build trust if we turn our words into deeds.”
Harvard Business School, COP27: What Can Business Leaders Do to Fight Climate Change Now?
More Reading:
McKinsey & Company, How Big Business Is Taking the Lead on Climate Change
Harvard Business Review, Corporate Action on Climate Change Has to Include Lobbying