Businesses, especially large corporations, have a pretty bad reputation among environmentalists, and sometimes that's very justified.
We all know about companies that continue to pollute for long periods of time when they should have stopped doing so. Some companies employ apparently environmentally friendly practices, so-called “greenwashing”, as a marketing strategy. Additionally, some companies avoid liability for harm their products cause to individual consumers.
All of this is true, but we need businesses to drive the economy, and some businesses are working hard to put their house in order. The theme of Earth Day 2023 is “Investing in Our Planet” and businesses are a prime target for participating in this day. Therefore, it seems appropriate that we spend some time on business and the environmental crisis.
What practices are they using and what will they need in the future? So what exactly is happening in terms of investments?
“Some people ask, 'How can we make a business case for low carbon?'” I say: “How can you create a business plan that destroys the planet? ' said Keith Weed, Unilever's Chief Marketing and Communications Officer, at the United Nations Climate Change Conference COP21 in Paris in 2015.
Although it may not be obvious, many companies attend the annual COP meeting. Fossil fuel companies are active, primarily lobbying to block emissions cuts. Renewable energy companies will do the same and benefit from policies that pursue a green agenda. But there are also many companies, like Unilever, whose reason for being there is not immediately obvious.
Unilever itself has an impressive section of its website dedicated to Earth and Society, which considers the full range of environmental issues. The company is transitioning to using renewable energy across all its operations and aims to achieve net-zero energy use by 2039. But even Unilever has been accused of greenwashing, claiming its Persil cleaning solution is “earth-friendly.” They were forced to withdraw their ad by the British Advertising Standards Authority, who said it was unclear.
But perhaps we shouldn't base our judgment solely on one rather unfortunate case. Many other companies are making moves toward environmental sustainability, including Microsoft, Google, Apple, and Philips. Of course, few people have a perfect record, but at least one feels like they're on the move. “Let him who is without sin cast the first stone.”
What about investments? His COP21 in Paris was a key moment and many initiatives were initiated as a result.
One of these, Climate Action 100+, is a group of investors committed to ensuring that the world's largest greenhouse gas emitters take action on climate change and align with the Paris Agreement. These investors' approach is one of engagement and seeking to change company policy through shareholder resolutions and similar tactics.
There is also now a very large and growing ethical investment sector, where investors avoid putting money into areas that are considered particularly unethical (fossil fuel industries, tobacco, weapons, gambling, etc.). We invest in areas that are considered ethical. Be ethical (community investments, renewable energy, etc.). Global sustainable investments reached $35.3 trillion in 2020.
Additionally, a fossil fuel divestment movement is developing, with individuals and organizations deciding to divest from fossil fuel companies altogether rather than seek involvement with them.
The movement began on U.S. college campuses in 2011 and quickly spread with support from organizations like 350.org. Although they have been particularly successful on college campuses, foundations, pension funds, and religious organizations have all divested to varying degrees.
Churches and denominations, often concerned about the morality of continued investment in fossil fuels, have been at the forefront of this movement. But here in the UK, the Church of England continues to invest in fossil fuels, despite intense pressure from campaign groups. By 2021, a total of 1,300 financial institutions that controlled approximately $14.6 trillion have been sold.
Let's end with COP27, which will be held in December 2022 in Sharm el-Sheikh, Egypt. On the surface it wasn't a very successful conference, but once again companies were participating and planning a different future.
“Almost 10,000 of the world's largest companies have now set net-zero targets,” said Peter Bakker, CEO of the World Business Council for Sustainable Development.
He continued: “The only way to create sustainability solutions at the speed and scale needed is to fundamentally rethink the economic models in which our societies operate.” Gone are the days when it was possible to look only at financial performance and ignore environmental and social impacts. ”
This kind of thinking among business leaders would never have occurred a few years ago. As we celebrate Earth Day 2023, consider how the company you know can “invest in the planet.” Maybe you could ask them what their plans are!
Editor's note: This article is part of this week's series. earth day (April 22nd). Previous articles in this series are:
What can we do for a world population of 8 billion people? | Don Gordon
