How companies, employees can push for climate policy progress 

Companies wield enormous influence on climate policy through lobbying, trade association memberships, and public advocacy. Given this, companies have a responsibility — and an opportunity — to accelerate and prioritize responsible political engagement. While many companies are working to address the climate crisis in their operations, supply chains and products, global emissions continue to rise. More than ever, companies should be doubling down on meeting 2030 science-based targets — and indeed most companies risk missing these targets without bold public policy that accelerates decarbonization across all sectors. 

A Bloomberg News investigation has shown Big Tech’s push on artificial intelligence (AI) is extremely resource intensive — with emissions sharply rising as a result. AI is accelerating emissions from companies such as Google and Microsoft. Google recently reported a rise in its greenhouse gas emissions last year by an astounding 48 percent since 2019. Meanwhile, Microsoft’s AI activities have caused a spike in emissions by 30 percent relative to 2020 (although the company still aims to be carbon negative by 2030).

When a well-resourced company such as Google falls short, no longer claiming to be carbon neutral and admitting to not being able to meet its current emissions reductions goals, a new approach is clearly needed. Furthermore, the recent move by Tractor Supply to cut back on carbon emissions goals is also a step in the wrong direction at a time when we need companies to commit to clean energy investments and climate policy advocacy. To counter these trends, we need faster progress on policy to drive rapid systemic change.

One of the most significant levers to reduce emissions at speed and scale is the adoption of strong binding public policy across all levels of government. Yale’s 2023 International Public Opinion on Climate Change study reminds us that between 50 to 60 percent of Americans believe climate change should be a “very high” or “high” priority for our government.

Unfortunately, despite mounting efforts on behalf of businesses, governments as well as individuals, fossil-fuel interests and large cross-sector trade associations continue to use their influence to inhibit progress on climate policy.

So how can companies take action?

A 2024 study by Kite Insights found that 83 percent of employees surveyed globally across 15 industries want to take action on climate change in their jobs. With mounting concern about climate change and a workforce ready to take action, companies should prepare to get off the sidelines, commit to supporting renewable energy goals, reduce carbon footprints and be a champion for meaningful policy progress. We need companies and employees to advocate for alignment with international climate goals, such as the Paris Climate Agreement. Here in the U.S., companies should also be prepared to step up support for and defense of federal clean energy tax credits, investments, and climate and energy provisions included within the Inflation Reduction Act (IRA).

Related webcast

Countdown to COP 16: Key Strategies for Engaging with the Biodiversity Conference

This webcast will recap the strategies governments and businesses put in place to achieve global biodiversity targets and preview what lies ahead at COP 16 in Cali, Colombia.

September 10, 2024

Register

According to InfluenceMap’s most recent assessment of Corporate Climate Policy Engagement Leaders, 27 companies are leading the way on climate policy action. Corporate leaders on the list must “align their climate policy advocacy with science-based pathways for delivering the goals of the Paris Agreement, and they must engage actively with those positions.” It’s worth noting that only five out of the 27 climate policy engagement leaders are based in the United States, compared with 16 in Europe. Why is that? Let’s keep asking this question — along with what U.S. companies will do in the short term to avoid further falling behind over the longer term.

What can companies and employees do? 

Employees play a critical role in ensuring their company’s climate policy positions align with their sustainability commitments. Fortunately, 45 percent of employees surveyed by Kite Insights are ready to go even further and become pioneers of climate action within their teams and functions.

More than 1,000 sustainability professionals have signed The LEAD Statement launched earlier this year, adding their voices to a growing cadre of expert practitioners calling on companies to lead on climate policy. This statement calls on companies to:

• Leave obstructing trade associations (such as the U.S. Chamber of Commerce) 
• Elevate climate policy as a company priority
• Advocate publicly for effective binding climate policies
• Demonstrate real commitment to the collective action needed to achieve the just and equitable transition from fossil fuels agreed on at COP28 

Whatever your role, your voice — and your willingness to take a stand — is needed now. 

Employees and companies can:

• Sign the “Fossil to Clean” letter. We Mean Business recently reopened the letter and is accepting new signatories. Your company should sign if it hasn’t already.
• Continue to publicly support the Securities and Exchange Commission’s (SEC) final disclosure rules. Urge your sustainability and/or government relations teams to weigh in with public support of the rules and by raising support within your trade associations. You can also urge your company to learn more about and join an amicus brief organized by Ceres.
• Impress upon your congressional representatives the importance of the IRA to your business and the need to ensure full funding of its provisions and implementing agencies. If your company is affected by the IRA, it should be speaking up publicly about its benefits and why we should protect it from rollback attempts.
• Integrate best practices outlined in the Business Associations Climate Action Guide launched in June to better inform businesses how to align their association memberships with positive climate policy engagement.

Companies can actively take the lead by publicly distancing themselves from positions and statements that do not align with strong climate leadership. They need to consistently and forcefully lobby for bold and just climate policies at the federal, state and local levels. Companies should also align political contributions with climate advocacy, while looking for opportunities to lead or join pro-climate coalitions in advocating strongly for pro-climate policies. Meanwhile, employees can continue to press their leaders — helping to keep our systems accountable, and rooted in forward-looking climate action momentum.