These days the majority of businesses are aware (and wary) of greenwashing.
Climate denial is rare and most large companies have declared topline support for climate action, through public acknowledgement and support of the Paris Agreement, setting climate targets and developing action plans.
But – and this is a very big but – in Australia and around the world there is a growing disconnect between what companies say they’re doing about climate change and their lobbying efforts behind the scenes.
Having their cake and eating it too
A new report from Climate Integrity titled “Risky Influence” proves just how widespread this problem is. Their investigation looked at nine of Australia’s largest companies’ engagement on climate policy, and found a disturbing disconnect between what they say publicly and what is happening behind closed doors.
How? Many companies are undermining their own climate efforts by delaying, weakening or obstructing progressive climate policy – either by directly lobbying against it, or doing so via their trade associations. Businesses who have a lot of political sway are also an issue as they’re often hesitant to engage or have chosen to stay silent on environmental policy, allocating their lobbying dollars elsewhere.
Why this matters to business owners
When it comes to cutting world-wide emissions, business plays an out-sized role. In order to stop the world from heating beyond the 1.5 degree limit outlined in the Paris Agreement, we need corporations to take radical steps to decarbonise, alongside strong climate policy at every level of government: federal, state and local. Companies play a key role in enabling policy change and they can and must leverage their enormous political influence in support of positive climate policies.
Beyond the moral and social imperative of businesses to work towards climate solutions, this unethical behaviour could also have real legal implications. Why? Because saying one thing publicly and doing something to oppose that behind closed doors is greenwashing.
What are the legal risks of ‘lobbying greenwashing’?
Climate Integrity worked with the Environmental Defender’s Office to outline the potential legal risks faced by company directors because of this covert greenwashing. These risks include legal action being taken against the company for misleading or deceptive conduct; increased shareholder advocacy, which could have serious financial consequences for investors; and other litigation.
So, what can you do about it?
While addressing this kind of behaviour can seem daunting, if you know this is happening within your business you need to act sooner rather than later. First, the world is rapidly running out of time. We’ve just undergone the hottest consecutive 12 months in history, and the longer that Australia’s most important and influential corporate players don’t take this seriously, the more they are risking our futures. Second, you could be avoiding reputational and legal risk.
Here are three keys steps your business should be taking to achieve a leading climate policy agenda:
- Advocate for policies consistent with achieving net zero emissions by 2050. For example, right now, some of the policies that need corporate backing in Australia include the new national nature protection laws (the EPBC Act or further reforms to the Safeguard Mechanism).
- Align trade associations advocacy with net zero emissions goals
- Allocate advocacy and lobbying spending to advance climate policies
Corporate climate commitments are about more than just emissions. To back up their claims of real and tangible climate action, companies must also act on their advocacy and lobbying efforts by making climate policy a top priority.
Do you work for a for-profit business? Are you curious about – or already active in – using your job to address the climate crisis? Enrolments are now open for the next WorkforClimate Academy cohort, due to kick off at the end of August. Head here to register.
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