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A new report found that a third of US businesses are losing sales, employees, and investment opportunities due to failing to address the climate crisis.
Overall, 80% of respondents stated that their business was being proactive with respect to the environment.
NEXT Energy Solutions surveyed more than 200 senior executives, managers, and C-suite decision makers from US companies to get their opinions on corporate responses to climate change.
The Survey results33% of respondents reported losing business to their competitors because they did not have the right strategies or took concrete actions to address the climate crisis. Businesses reported losing sales, employees, and investments.
“Every rational, engaged and forward-thinking board or C-suite realizes the need to act with urgency to address the climate crisis,” NEXT chief executive Daniel Emmett said.
“Climate mitigation is no longer just a federal regulation problem for oil companies or manufacturers — the broader business community and consumers are making it crystal clear that inaction has tangible economic and competitive consequences.”
In total, 80% of respondents reported that their business was being more proactive in regards to the environment with personal interest in climate progress (49%), access to new environmental-focused markets (34%) and PR/company image goals (32%) listed as the main drivers for action.
Additionally, almost three-quarters believe that their companies’ sustainability is “enough” to meet regulatory and consumer demands. NEXT reports have previously stated that employees want to work in environmentally responsible companies. 74% of employees said they would consider this when making a decision to quit a company.
Worrying trend
Some of the top companies were named earlier this month by ExxonMobil Chevron, Chevron, and Tesla. The US has the worst corporate climateIn a new study.
Published by As You Sow (non-profit). the ‘Road to Zero Emissions’ report assesses how 55 of the largest US-based corporates are responding to the growing global net-zero movement and contributing to global efforts to hold temperature increases above pre-industrial levels below 1.5C. Technology, FMCG, finance, transport, energy and chemicals are all covered.
Worryingly none of the 55 companies received a top score for setting targets around emissions reductions. As You Sow was looking to create target plans with a net zero goal by 2050 at the earliest, applicable to all emissions scopes and underpinned by 1.5C-aligned interim targets.
This finding is consistent with several other recent reports on the credibility of corporate climate commitments. Net-Zero Tracker’s post-COP26 stocktake revealed that 68% of publicly listed businesses had not set targets covering all Scope 3 emissions. Recent research has shown that 68% of publicly listed businesses had not set targets for all Scope 3 emissions. an analysis of 25 corporates’ net-zero plans concluded that they cover, on average, just 40% of the business’s total value chain emissions.
As You Sow also pointed out that most companies don’t report their Scope 3 emissions in a credible way, which could hinder the achievement of robust target-setting. 90% of the companies it evaluated reported their Scope 1 and 2 emissions. However, only 36% reported all Scope 3 emissions in accordance with the GHG Protocol.
Matt Mace
