American Companies Take Lead in Fighting Global Warming in the Absence of Federal Government

April 26, 2017 – A week after the last presidential election in the United States, 365 companies, and major investors addressed the incoming president with a plea to address climate change and remain committed to the goals of the Paris Climate Agreement. In a joint letter, they wrote: “failure to build a low-carbon economy puts American prosperity at risk.”

Since that initial plea corporate America has made lowering emissions a primary goal with 48% of Fortune 500 companies in the country setting targets to reduce their carbon contributions to the atmosphere and oceans. In this group we see the following:

• 190 Fortune 500 companies have developed nearly 80,000 emission-reducing projects producing nearly $3.7 billion in savings in 2016 alone, and equivalent to shutting down the output of 45 coal-fired power plants over a year.
• 63% of Fortune 100 companies have one or more clean energy targets.
• 44% of the smallest 100 within the Fortune 500 have also set carbon reduction goals in one or more categories, an increase of 19% from 2014.
• Two-dozen companies including Google, Walmart, and Bank of America have set targets to be powered by 100% renewable energy within the next few years with Google data centres expected to run 100% on renewables by the end of this year.

Surprisingly not on the list of those committed to reducing carbon emissions are Berkshire Hathaway, Costco, and Tyson Foods. Not surprising, the missing in action include fossil fuel giants ExxonMobil, Chevron and Phillips 66.

Walmart’s pledge is to reduce its carbon footprint by 18% by 2025. It has also requested of its suppliers that they too commit themselves to reduce emissions.

Google has invested in wind and solar farms.

One thousand companies are now participating in a low-carbon business initiative which states as its goals:

1. The continuation of low-carbon policies to allow the U.S. to meet or exceed national commitments and increase American business influence in a greener economy globally.
2. Investment in a low-carbon economy domestically and overseas to give financial decision-makers clarity and boost investor confidence in American business.
3. Continuing America’s commitment to the provisions of the Paris Climate Agreement and its goal to keep mean global temperatures from rising above 2 Celsius (3.6 Fahrenheit) degrees.

The end result will be turning billion dollar investments in low-carbon into trillion dollars of clean-energy business for American companies going forward.

The site Science-Based Targets has been set up to help companies establish carbon-reduction initiatives and to report on their progress. The site provides a step-by-step process for developing and meeting targets and includes tools, methods, resources, and report guidance, the latter transparent to consumers and shareholders. Companies are repeatedly receiving requests from the public and shareholders to add to existing boards expertise on sustainability and carbon reduction.

At Mars Incorporated, Chief Sustainability and Health and Wellbeing Officer, Barry Parkin, states, “This is an important moment in global political and economic history, and we absolutely must come together to solve the immense challenges facing the planet. Climate change, water scarcity and deforestation are serious threats to our business and society.”

What Canadian companies have announced carbon reduction commitments?

Not many and that may be because governments, municipal, provincial, territorial and federal have committed to carbon-reduction strategies with nationwide implications including the imposing of a federal carbon tax beginning in 2018.

One corporation, however, stands out. Loblaw Companies Limited, Canada’s largest grocery chain, and food services company, in December of last year, pledged to reduce its carbon footprint by 20% by 2020, and 30% by 2030. Its intention is to cover store operations, distribution centres, transportation, refrigerants and waste diversion.

Another, TransAlta Corporation, an Alberta energy supplier, in this last week committed to reducing carbon emissions and announced the closing of two of its coal-fired power plants by 2019.

CN the railway giant recently created an EcoConnexions Partnership Program to reduce not only its but also suppliers’ carbon emissions.

And Toronto Hydro, the city utility company, was recently recognized for efforts to-date to decrease its carbon footprint including a 24% drop from 2014 to 2015.

It’s time for Canadian companies to establish initiatives similar to that by American companies so they too can meet the global carbon challenge and fight against atmospheric warming.