Original Report: www.cbc.ca(full story)
- Numerous companies are retreating from bold climate targets amidst rising global temperatures.
- Various reasons cited for this trend include economic pressures, lack of clear standards, and emerging priorities.
A growing number of companies are abandoning their carbon emissions commitments, coinciding with predictions of 2023 being among the hottest years on record. Recently, Volvo retracted its goal of a fully electric vehicle lineup by 2030, while Air New Zealand and Shell also relaxed their emissions reduction targets.
Charles Cho, a professor at York University, remarked that this trend isn’t entirely new but has become more conspicuous due to the current global situation. He noted, “I think there was a rush to make those targets visible, but they spoke too fast.”
Historically, after the 2015 Paris Accord, many firms pledged significant emissions reductions and net-zero goals by 2030. However, due to vague definitions and a lack of enforcement, many corporations now find these targets unattainable.
Factors in the Retreat:
- Air New Zealand attributes its decision to difficulties in accessing efficient aircraft and sustainable fuels.
- Volvo cites stagnant demand for electric vehicles and poor charging infrastructure.
- Shell points to ongoing demand for fossil fuels and uncertainty about energy transitions.
Additionally, the COVID-19 pandemic and inflation have strained finances, complicating firms’ capabilities to invest in greener technologies. The advent of new revenue streams—like those seen in AI investments from Microsoft and Google—has also hindered progress toward net-zero ambitions.
Another layer to this issue is the phenomenon known as “green-hushing,” wherein companies hesitate to publicize their environmental initiatives due to fears of litigation under new anti-greenwashing laws in Canada.
Despite intentions for climate action, Corporate Knights reports that over half of the world’s largest publicly listed companies lack formal net-zero commitments. The absence of a standardized definition for net-zero further complicates the landscape. However, initiatives like the Science-Based Targets (SBTi) aim to establish a scientific basis for assessing such targets.
Cho highlights companies like Patagonia and HP, which have made notable strides in climate action by addressing not only their emissions but also those in their supply chain. Ultimately, profit remains a driving force behind corporate climate strategies, even as investors grow increasingly committed to sustainable practices.
Danielle Fugere from As You Sow emphasizes that companies not aligning with global transitions may risk being left behind in a rapidly changing market. The disruptive consequences of climate change further underscore the urgent need for authentic corporate engagement with climate goals.
