An increasing number of companies are stepping back from their decarbonization targets and climate commitments. This trend stems from a mix of realizing the challenges in achieving the necessary reductions and the growing politicization of climate efforts, particularly in the U.S. Companies are discovering that decarbonization is proving to be more difficult than anticipated.
One possible reason for this retreat could be a lack of adequate preparation. One method of tackling this is the top-down and bottom-up dual approach while setting maintainable achievable targets that companies can confidently pursue:
- Top-down: Ensuring leadership buy-in is crucial for supporting the measurement of the organization’s greenhouse gas (GHG) emissions baseline.
- Bottom-up: On-the-ground teams need to understand how their daily decisions can influence emissions, such as opting for electrification during equipment renewal or implementing efficiency-improving technologies in manufacturing processes.
Navigating the politicization of climate action requires a strategic approach. A recent tactic by the SEC, which emphasized that its climate regulations are about protecting investors rather than directly addressing climate change, shows how framing climate efforts as beneficial for business can be effective. The key is to present climate actions with solid, quantifiable business benefits.
In summary, when climate efforts are done right, they can seamlessly integrate into business strategies.
