This text is sponsored by Pure Methods.
With the impacts of local weather change bearing down upon us, we have now seen a flurry of exercise from each activists and main manufacturers, together with Patagonia and Seventh Technology, to refine the requirements, limits and necessities of company local weather management. Their elevated scrutiny extends past direct operations and provide chains and targets the broader programs perpetuating the local weather disaster.
In 2020, fossil gas manufacturing and use contributed to 73 p.c of whole U.S. greenhouse gasoline (GHG) emissions, prompting local weather activists to demand a wholesale shift away from fossil fuels. This motion has spurred initiatives such because the Fossil Free Banking Alliance, whose members pledge to not finance fossil gas corporations, and a coalition of advert businesses to forswear working with the sector.
It has additionally impressed main corporations to redefine the boundaries of their very own local weather impacts. For instance, Patagonia introduced it’s exploring banking with corporations whose local weather positions align with their very own. And simply this week, Seventh Technology unveiled a brand new strategy to judge, disclose and act on the local weather efficiency of key enterprise relationships of banking, insurance coverage, advertising and marketing, artistic companies, philanthropy, advocacy and different company actions.
Fingerprinting: A brand new strategy to uncovering actual local weather influence
In its 2022 Company Consciousness Report, “Fingerprints: Our 2022 Local weather Impression in Full Disclosure,” Seventh Technology, with help from Pure Methods and a cadre of revolutionary local weather advocacy organizations, particulars a brand new strategy to evaluating what it phrases the corporate’s “local weather fingerprint.” The report asks stakeholders to think about “what number of locations you permit your fingerprint — on the door to your home, in your pc, on the espresso mug you used at your native bakery. Your fingerprint is probably going not the one fingerprint on this stuff, however it’s a mark of your influence.”
The report highlights that corporations corresponding to Seventh Technology can discover their local weather fingerprints throughout a spread of company spending and actions. For instance, in terms of monetary companies, it’s been extensively reported that most main banks, insurance coverage corporations and different service suppliers are closely invested within the carbon financial system and never doing sufficient to advance an actual web zero future. Utilizing the methodology developed by Seventh Technology, Pure Methods and a number of other NGO companions to judge the corporate’s monetary companies companions, we discovered finance corporations to be lagging as properly. Few disclosed their fossil gas associated investments, dedicated to science-based targets, had substantial local weather sensible funding merchandise, or paid greater than lip service to local weather justice of their insurance policies and investments.
A overview by Seventh Technology’s advertising and marketing and inventive companies discovered these service suppliers lagging as properly. Few had public local weather commitments, for instance, and none clearly prioritized purchasers working to advance a web zero-carbon future. Seventh Technology’s philanthropy and advocacy local weather fingerprints fared higher primarily based on its management in funding Indigenous and justice-based organizations. The report additionally emphasizes that whereas discovering and evaluating company local weather fingerprints is essential, the actual worth lies in addressing the gaps in efficiency and appearing on this expanded view of company local weather “hotspots.”
Taking motion in your Local weather Fingerprint
The most recent IPCC report was unequivocal. The emissions from already current and deliberate fossil gas infrastructure will push us properly previous 1.5 levels Celsius, and certain previous 2 levels Celsius common international temperature rise. Company local weather leaders must look past conventional Scope 1, 2 and three boundaries, and assess how different enterprise actions might impede progress towards a protected and simply local weather future. We suggest a number of steps.
Measure: Evaluate the local weather practices and insurance policies of service suppliers and enterprise companions.
- Whereas the Local weather Fingerprint methodology developed by Seventh Technology and Pure Methods is new and can evolve and enhance over time, it gives a leaping off level for addressing local weather hotspots in enterprise companies and relationships past Scopes 1, 2 and three.
- Make certain to have interaction your CFO, basis management and others that personal these relationships within the fingerprinting train. Their buy-in might be crucial once you transfer from assessing your fingerprint to appearing.
- Key assets for this work embody 10-Okay annual studies, ESG studies, submissions to CDP or local weather studies utilizing the Process Power for Local weather Associated Disclosure framework. The Out of doors Coverage Outfit and Drawdown have revealed helpful methodologies. Different assets embody The Carbon Financial institution Roll and Affect Map.
Affect: Have interaction companions. Engagement is crucial as a result of in some circumstances, the climate-friendly manner ahead could also be comparatively easy (new guardrails or service suppliers, for instance), however in lots of circumstances, the trail to progress could also be unsure. For instance, subsidiaries of bigger corporations won’t make selections associated to service suppliers (corresponding to banking companies). In different circumstances, there could also be few, if any, higher climate-safe choices out there. Some locations to start out embody:
- Educate management about hotspots and the necessity for motion.
- Dialogue with service suppliers about their local weather ambitions and insurance policies, and yours.
- Empower workers to advocate for local weather motion in their very own spheres of affect.
Activate: Make modifications and enhance efficiency. Not dissimilar from conventional methods to handle Scope 1, 2, and three emissions, there could also be some straightforward wins and a few long-term, harder interventions. Interventions might embody:
- Establish mutually agreeable commitments (such because the Clear Creatives pledge).
- Pilot climate-friendly improvements and merchandise.
- Undertake guardrails and enshrine them in RFPs and enterprise contracts.
- Prioritize local weather justice in philanthropy and advocacy.
- Communicate publicly and encourage business motion.
Within the case of Seventh Technology, Ashley Orgain, international director of advocacy and sustainability, says the corporate “goals to make use of Fingerprinting to shift the local weather coverage of our monetary and inventive service suppliers, foundations, and advocacy work.”
Fingerprinting opens new avenues to speed up the transition away from the fossil gas financial system. I foresee thrilling prospects for sustainability leaders to work with banks, insurance coverage suppliers, PR companies, company foundations and different service suppliers to extend transparency and make significant change. Equally thrilling is the potential of collaborating with different corporations and NGOs to amplify our voices. Seventh Technology has crafted a approach to scrub the soiled fingerprints and go away clear ones behind.
Focused on studying extra? Take a look at Seventh Technology’s report or join with Pure Methods at [email protected].