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Companies Promise Climate Action | Earth Wise

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A growing number of major corporations are making promises on climate and the promises are getting more ambitious and for faster action.  More companies are disclosing their carbon emissions and more of those companies have emissions reduction targets. 

There has also been an acceleration in the rate at which companies set so-called science-based targets, which are specific, measurable carbon reduction goals that align the company with the Paris Agreement.  Among the hundreds of companies with such targets are Coca-Cola, Nike, Best Buy, Walmart, and Hilton Hotels.  According to one analysis, the number of Fortune 500 companies with concrete, ambitious carbon targets quadrupled in the past four year to 23%.

Environmental advocates have been pressuring companies for decades, but companies seem to be far more proactive now despite the fact that the U.S. government has largely dropped the ball on climate issues.

The reasons include the fact that the effects of climate change are becoming clearer to companies.  Wildfires, rising sea levels, droughts and other aspects of the crisis both make headlines and affect business operations.

Meanwhile, solar and wind energy have gotten significantly cheaper, making it more attractive for companies to shift away from fossil fuels.

At the same time, investors are increasingly asking companies to act on climate issues.  Consumers, employees, and the general public are increasingly demanding action and even children are adding to the pressure to act.

Making these commitments is one thing; following through on them and sticking to them is another.  There are real concerns that there is a great deal of green-washing going on among companies trying to project a favorable image.  In any case, if companies really want to lead on climate, they need to put their money where their mouths are.

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Better Late Than Never? Big Companies Scramble To Make Lofty Climate Promises

Photo, posted June 22, 2016, courtesy of Mike Mozart via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Climate Change And The Bottom Line

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Large companies around the world are facing up to the fact that climate change could substantially affect their bottom lines within the next five years.  Shareholders and regulators have been applying pressure to companies to disclose the specific financial impacts they could face as the planet warms and companies are increasingly making those disclosures.

A non-profit charity called CDP (formerly known as the Carbon Disclosure Project) runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.  In 2018, more than 7,000 companies submitted reports to CDP and, for the first time, CDP explicitly asked firms to try to calculate how a warming planet might affect them financially.

Analysis of the reports from 215 of the world’s 500 largest corporations revealed that these companies alone potentially faced roughly $1 trillion in costs related to climate change in the decades ahead unless they took proactive steps to prepare. 

Climate-related risks range from extreme weather that could disrupt supply chains to stricter climate regulations that could hurt the value of coal, oil, and gas investments.  Technology companies like Google’s parent company, Alphabet, Inc., face increased costs to cool energy-hungry data centers as temperatures rise.

In all, the world’s largest companies estimated that at least $250 billion of assets may need to be written off or retired early as the planet heats up.  Previous studies, based on computer climate modeling, have estimated that the risks of global warming, if left unmanaged, could cost the world’s financial sector between $1.7 trillion to $24.2 trillion in net present value terms.

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Companies See Climate Change Hitting Their Bottom Lines in the Next 5 Years

Photo, posted February 29, 2016, courtesy of Ben Nuttall via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

A Quiet Clean Energy Revolution

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While the Trump administration seeks to prop up and promote use of fossil fuels, the country continues to move in the opposite direction.  Last year was actually a pretty positive year for clean energy in the U.S.

In terms of public opinion, 70% of Americans surveyed believe the country should produce 100% of its electricity from renewable energy sources and more than half of survey respondents think renewables are a good idea even if they raise energy bills.

Companies in the U.S. purchased a record 6.43 gigawatts of renewable power, enough to power 1.5 million homes.  The number of corporations entering into renewable energy deals doubled last year.

More than 300 U.S. cities, towns or counties have made commitments to climate action and, as of November, 99 cities have committed to 100% renewable energy, doubling the total from a year ago.

A number of gubernatorial candidates running on ambitious renewable energy platforms were elected in November including those in Illinois, Colorado, New Mexico, Maine and Nevada.

Utilities are responding to the growing demand for clean energy.  Consumers Energy in Michigan plans to cut carbon emissions by 80% and stop using coal.  Iowa-based MidAmerican Energy will become the first U.S. utility to source 100% of its electricity from renewable sources next year.  Xcel Energy, one of the biggest utilities in the country, has committed to be 80% carbon-free by 2030 and go completely carbon-free by 2050.

The fossil fuel industry with its supporters in high places is still kicking and screaming, but there is no doubt that the U.S. energy system is changing, and the quiet clean energy revolution will only pick up more steam in 2019.

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The US Underwent a Quiet Clean Energy Revolution Last Year

Photo, posted August 15, 2009, courtesy of Ken via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Green Tech In 2018

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Clean power gathered unprecedented momentum in 2017.  With climate problems on the rise, national and local governments are pushing for more renewable energy and the end of fossil-fueled cars.  Corporations around the globe are making major commitments to green technology.  Despite the Trump Administration’s open hostility toward clean power and its rejection of climate science, American states, municipalities and private companies are all getting with the program.

[Read more…] about Green Tech In 2018

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