Lubricating Business-Government Gears

When you are in the midst of a crisis, the oft-used three-legged stool analogy seems wholly inadequate. Our global climate crisis cannot be solved by a very limited number of pillars of action. This is the quintessential problem that requires a whole of fill-in-the-blank strategies to arrest the worsening effects of climate pollution. There are no sidelines where inaction should be tolerated.

It is, however, sensible to focus on parties with whom the greatest potential for positive impact rests. Business is near the top of that list. The private sector can and must take responsibility for its greenhouse gas pollution, and take immediate and measurable steps to significantly reduce emissions. In 2015, the Science-Based Target Initiative emerged from a coalition of UN agencies and business leaders committed to addressing the role of the private sector in our climate crisis. Today, hundreds of companies around the world have publicly committed to science-based GHG reduction targets as part of the SBTi, and that list is growing. This is commendable. But a target is not a substitute for actual investments and discernible and achievable emissions reduction plans.

Targets and commitments are precursors to action, and we must focus on actual reductions. Companies that emit GHGs should be transparent about their plans to reduce emissions, and be held to account. These plans should also address companies’ supply chain emissions, which often represent the vast majority of their overall carbon footprint. These are not easy decisions and actions for companies to take, and they often collide with plans for production growth and the desire to maximize profits. But the climate crisis demands a long-term outlook. And consumers and investors should reward companies that match science-based targets with real emissions reductions. Going a step further, companies should be advocates for public policies that enable more widespread emissions reductions. Why? Because addressing a global climate crisis should be viewed as a business imperative.

Those public policies may include a range of voluntary programs, government-led research and development, and action-inducing incentives. They should be centered around equity, recognizing that the climate crisis is also an environmental, economic, and social injustice that demands proactive and equitable responses.

Those public policies should include stringent emissions standards that are legally defensible and scientifically based. We should not be fooled by the list of hundreds, if not thousands, of companies worldwide who promote their GHG targets as representative of those actually partaking in the solution to this crisis. The largest GHG emitters—including those who fail to account for their supply chain emissions—are often absent from those lists. It is government’s responsibility, using its full authorities, to address the largest-emitting sectors by setting enforceable limits.

There is another segment of society that also plays an important role in solving our climate crisis, less heralded in Washington, D.C., and state capitals, unspoken of in corporate board rooms, but felt keenly in communities suffering from worsening effects of this crisis: philanthropists. They, and the organizations that wield their dollars, have the capacity to equitably target resources to communities where needs for restoration and resilience are greatest. Philanthropic organizations can experiment, innovate, and invest, without the restrictions of government or the self-imposed limits of most corporations. They can fund pilot projects, prioritize impact, convene and connect people, and seize upon new ideas and approaches. Philanthropy can also leverage both government and the private sector in ways that can supercharge their collective effectiveness.

We are in the midst of a crisis of our own making that spares no one. Conversely, no one can afford to remain a bystander to the array of solutions at our disposal and on the horizon. Aspirations and intent are not enough. Only through the combined force of action can we see a brighter future.