Corporate America is making important strides in addressing climate change. Almost 600 companies have joined the Science-Based Targets Initiative, nearly 200 have committed to use 100% renewable energy and companies are increasingly investing in technologies that improve environmental outcomes.
You may not be thinking about the environment when you’re opening your yogurt container or adding almond milk to your morning coffee. But for Danone North America, the company behind these and dozens of other dairy and specialty food products, sustainability is top of mind. “At Danone, we believe that each time we eat and drink, we can vote for the world we want,” the company’s website notes.
Just today, Danone North America announced that its Bridgeton, New Jersey facility achieved one of its zero waste goals, keeping more than 40 tons of waste out of the landfill this year alone.
After a decade-long dry spell, Corporate America’s call for climate action is back.
Despite the Trump Administration’s continued denial, leading companies are finally giving climate change the attention it deserves and urging Congress to do the same.
Years from now, we’ll look back at May 2019 as a breakthrough moment, when business engagement in climate policy gathered strength and became an unstoppable movement. This month alone, companies across sectors including oil and gas, electric power, consumer goods and food have joined the CEO Climate Dialogue, invested in the Americans for Carbon Dividends initiative, and advocated on the Hill to put a price on carbon.
As Axios’ Amy Harder notes, “Several years-long trends are driving corporations to ask for government policy — but it’s not really about saving the planet. It’s about investor and legal pressure, falling prices for renewable energy, new bounties of cleaner-burning natural gas and growing public concern about a warming planet’s impacts.”
Whatever the reasons companies are stepping up to the plate on climate policy advocacy, pressure from investors is one trend that is here to stay.
No matter the industry, business stakeholders care about lists – who’s on them and who’s on top. Consider this small sampling: Fast Company’s “50 Most Innovative Companies” list, Fortune’s “Change the World” list, Forbes’ “The World’s Most Reputable Companies” list, or Glassdoor’s “Best Places to Work.
Companies spend countless hours every year applying to appear on these lists, vying for the top spot and the ability to market that recognition to customers, investors, and employees. Just think, how many email signatures have you seen that end with “voted the best/most [fill in the blank] company for three years in a row”?
There are myriad psychological reasons why lists are so effective, popular and valuable. In the sustainability field, numerous rankings have emerged to help stakeholders assess corporate environmental performance and identify leaders from among the hundreds that have made environmental commitments.
Beyond bragging rights, sustainability rankings can also provide an essential service to companies by helping them define internal performance measures, attract top talent and link executive compensation to corporate sustainability.
Unfortunately, there’s a significant problem with these sustainability lists.
In the media storm surrounding the midterm elections, you might have missed an important act of sustainability leadership. Five of the world’s leading brands filed public comments opposing the Administration’s Affordable Clean Energy (ACE) rule. The ACE rule would replace the Clean Power Plan, which all five companies have previously supported, and place no quantitative limits on climate pollution from power plants.
In their public comments to the Environmental Protection Agency, Apple and the four members of the Sustainable Food Policy Alliance (SFPA) – Danone, Mars, Nestlé and Unilever – make it clear that clean energy is good for business, and call for policies that cut emissions in line with what science says is necessary.
Here are three of the key reasons they spoke up.
For the first time since 2010, a Republican has introduced a climate bill. Business leaders are welcoming its market-based approach to fighting climate change.
Yesterday, 34 U.S. businesses sent a public letter thanking Rep. Carlos Curbelo (R-FL 26thDistrict) for introducing the MARKET CHOICE Act (H.R. 6463), a bill to fund infrastructure investment while cutting climate pollution. Companies that signed the letter include BP America, Campbell Soup Company, The Dow Chemical Company, DuPont, General Motors, Ingersoll Rand, Lyft, Inc., IKEA North America Services, LLC, National Grid, PG&E Corporation and Shell. The Sustainable Food Policy Alliance, which includes Danone, Mars, Nestle USA and Unilever also sent its own letter of support.
Why are these companies publicly thanking Rep. Curbelo and his cosponsors? Here are four takeaways for companies of all sizes.
- According to the new Deloitte Resources 2018 Study, the number of companies with climate goals is higher than ever, and nearly half of businesses surveyed are working to procure more energy from renewable sources.
- Over 70 percent of executives surveyed for a recent Environmental Defense Fund report on environmental innovation said their business and environmental goals are more closely aligned than they were just five years ago, and that they are already actively investing in technologies that solve environmental problems.
- More than 400 companies have set science-based targets to cut their emissions, and 132 companies have committed to be powered 100 percent by renewable energy.
Most important, businesses increasingly see public policy as critical to achieving their climate and clean energy goals. Last month, leading companies including Apple, Google, Mars, Danone, Nestle, Unilever and American Eagle Outfitters filed comments with the Environmental Protection Agency (EPA), opposing repeal of the Clean Power Plan and affirming their support for policies that drive down emissions and increase access to renewable energy.
Here are three key takeaways from these developments.
US businesses turned out in force at COP 23 in Bonn, demonstrating to the rest of the world that they are committed to action on climate change, despite the US government’s withdrawal from the Paris Agreement. In fact, 2017 has been a banner year for corporate climate leadership: over 1700 businesses signed the We Are Still In declaration, and nearly half of all Fortune 500 companies now have climate and clean energy goals.
Now, there’s an immediate opportunity for companies to show leadership on climate change here at home: speaking up in defense of the Clean Power Plan, which the current Administration wants to eliminate but is still very much in play.
Here are three reasons for your business to publicly defend the Clean Power Plan before the EPA comment period ends on April 26, 2018.
As world leaders gather in Marrakech for the 22nd annual Conference of the Parties (COP 22) it’s worth celebrating the remarkable progress made recently in the global fight against climate change, and the positive contribution of U.S. businesses in making it happen.
The Paris Agreement entered into force on November 4th, four years ahead of schedule. Its rapid ratification by over 100 countries representing more than half of the world’s greenhouse gas emissions demonstrates the commitment of participants to urgent action on climate change. Over 150 U.S. corporations publicly expressed support for the Paris agreement, representing more than $4.2 trillion in annual revenue and with a combined market capitalization of over $7 trillion.
Last month, the International Civil Aviation Organization agreed to cap greenhouse gas emissions from international flights at 2020 levels, using market-based mechanisms to offset climate pollution from this rapidly growing sector. U.S. airlines welcomed the agreement as an effective complement to their own efforts to cut emissions through improvements to equipment, fuels and infrastructure, and as a unified global approach to achieving carbon-neutral growth from 2020 on.
Also in October, negotiators from nearly 200 countries agreed to an amendment to the Montreal Protocol that will phase down hydrofluorocarbons (HFCs), gases with 1,000 times the heat-trapping power of CO2. The agreement enjoyed the support of U.S. chemical companies that are developing environmentally preferable alternatives to HFCs, and is good news for companies everywhere that want to cut greenhouse gas emissions from their global supply chains.
[Tweet “Business support for smart climate policy is key to the success of #COP22”]
Business support was instrumental in reaching all three agreements, and will be critical to implementing them successfully. The good news is that leading companies are already taking action to help the U.S. meet its climate goals. To build on this great momentum, more companies need to take the next step in corporate climate leadership. Here are three ways business can step up:
- Setting ambitious GHG reduction goals. PepsiCo recently announced a goal to reduce absolute GHG emissions at least 20% by 2025, joining Kellogg’s, General Mills and Walmart in setting big goals to cut climate pollution from their supply chains. Almost 200 companies have joined the Science-Based Targets initiative, committing to reduce their GHG emissions in line with climate science.
- Scaling up renewable energy. Over 80 companies, including Apple, General Motors and Unilever have now joined RE100, an initiative to by committing to use 100% renewable energy sources. And the Renewable Energy Buyers Alliance brings together three different initiatives working with break down barriers to large-scale renewable energy deployment. Together, these companies are leading the transition to a clean, low-carbon energy system.
- Shaping public policy. Leading businesses are looking beyond their fence lines and seeking to transform the systems in which they operate. By supporting climate and energy policies that impact entire sectors of the economy, they’re having the biggest impact of all. Earlier this year, eight companies including Apple, Google and Microsoft filed amicus briefs supporting the Clean Power Plan. And private fleet owners, engine manufacturers and technology providers joined together to advocate for the new Clean Truck standards announced in August by the U.S. EPA and DOT.
It will take the continued leadership of U.S. businesses to ensure that we stay on track to deliver on the promise of Paris, meeting our 2025 targets and bending the emissions curve even more steeply downward thereafter. Working together, businesses and policymakers can create a world in which a stable climate and thriving economy go hand in hand.
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The Clean Power Plan (CPP) is topping the news as major coalitions of supporters have filed amicus briefs with the D.C. Circuit Court. With leading brands like Google, Apple, Adobe, Amazon, IKEA, Mars and Microsoft all stepping up and voicing support, you might wonder – what’s in it for them?
The plan, which will lower the carbon emissions from existing power plants 32 percent below 2005 levels by 2030, is a practical, flexible way for the U.S. to cut climate pollution and protect public health. President Obama has called it “the single most important step that America has ever made in the fight against global climate change.”
It’s encouraging to see many states, cities, power companies, public health and medical associations, and environmental organizations continue to push for smart environmental policy. The full list of Clean Power Plan supporters is here.
We are particularly excited about the range of private sector support for the Clean Power Plan.
[Tweet “Businesses like Google, Adobe, IKEA and Apple have an important stake in the success of the #CleanPowerPlan”]
When it’s fully implemented, the Clean Power Plan will create $155 billion in consumer savings—putting more money back into the pockets of customers. And, a successful Clean Power Plan will help companies meet their renewable energy and greenhouse gas reduction targets.
What’s in it for Companies? Here’s what the Clean Power Plan will provide: Read more