Previous articles in this series talked about leading businesses taking bold steps on their own for the common good — because it's the right thing to do — even if it costs the company financially in the short term.This time I want to point to the latest wave of businesses working collaboratively on the urgent, common ground issues of renewable energy and climate policy. In America's history of westward expansion and exploration, pioneer families came together in wagon trains for mutual support. In the same way, the examples below show that businesses are taking action, together, to ensure a more certain future that's good for all of us and for business.
Previous articles in this series talked about leading businesses taking bold steps on their own for the common good — because it's the right thing to do — even if it costs the company financially in the short term.
This time I want to point to the latest wave of businesses working collaboratively on the urgent, common ground issues of renewable energy and climate policy. In America's history of westward expansion and exploration, pioneer families came together in wagon trains for mutual support. In the same way, the examples below show that businesses are taking action, together, to ensure a more certain future that's good for all of us and for business.
To start off, a June 2014 clean energy report by Ceres, WWF and Calvert Investments supports the idea that this trend is gaining momentum. The report makes the case that big US companies are already investing in renewable energy as a basic “business as usual” material issue, including UPS, Cisco Systems, PepsiCo, United Continental and General Motors. These and the other companies in the report have already saved a billion dollars in energy costs and upped their business planning certainty. Far from a fringe or boutique concern, renewable energy investment is about knowing where your energy is going to come from tomorrow, and having some sense of how much it will cost.
It’s worth noting that several cross-sector partnerships and multi-stakeholder groups for climate issues have been working on these issues for years. The UK- and EU-focused Prince of Wales' Corporate Leaders Group first convened in 2007. And the US-focused group BICEP has been advocating for energy and climate legislation since 2008, with its Climate Declaration attracting over 700 corporate signatories to date. (For more examples of creative, effective partnerships on climate-impacting issues, take a look at Sustainable Brands’ collaboration and co-creation channel.)
But just in the past three months, there have been several high-profile announcements, as well as one intriguing low-key entry. These are four groups to watch:
1. March 2014 — Business Alliance for the Future Meets for First Time The Business Alliance for the Future is a new alliance of alliances that's being organized and supported by about 40 business affiliations including BSR, B Team, Ceres, World Business Academy, SVN, National Association of Women Business Owners, Young Presidents’ Organization and others to “to connect, magnify and exponentially accelerate, business’ role in building a world where business excels, people thrive and nature flourishes.”
The group first met in March in Santa Barbara, CA and it is scheduled to meet again in October at the Fowler Center for Sustainable Value at Case Western University. The Alliance is formulating its strategy around the intention to dramatically impact existing game-changing projects (to the tune of 5x in 5 years) by fostering action-oriented collaboration.
According to Alliance member Jeana Wirtenberg, co-founder of the Institute for Sustainable Enterprise, who is heading up one of the working groups, “There are several collaborative action team initiatives already well under way, including: amplifying and spreading a new business narrative; creating 100 percent renewable energy economy; participating, aligning around, and designing a grand economic strategy; and developing and implementing a new corporate scorecard and metrics.”
2. May 2014 — We Mean Business Coalition Launches While we don't have specifics yet about what this group will tackle, We Mean Business stated goal on their website is to call for “ambitious climate policy and bold climate action.” The group is like a super-pod of business action leadership, with partners from BSR, CERES, CDP, the World Business Council for Sustainable Development, the Climate Group, and the Prince of Wales's Corporate Leaders Group, in conjunction with Nike and IKEA.
3. June 2014 — Small Business Poll Shows Support for Market-Stabilizing Rules
In late June, the American Sustainable Business Council released poll results showing that US small business owners support climate rules for market stability and predictability.
The survey found that “clear majorities of small business owners are concerned about how climate change will affect their companies, including its impact on energy costs, health care costs and the infrastructure they depend on. Survey respondents voiced strong support for government action to address climate change, specifically, efforts to limit carbon pollution from power plants which produce a third of all U.S. carbon emissions.”
I find this poll interesting because it shows that leaders from small US businesses are on the same page when it comes to wanting business certainty in the face of climate instability as many of their colleagues at global behemoths.
4. July 2014 — Launch of Renewable Energy Buyers’ Principles
And on July 11, the World Wildlife Fund (WWF) and the World Resources Institute (WRI) announced that 12 major companies — spanning communications, manufacturing, consumer goods and tech — are jointly asking utilities and energy suppliers to offer more renewable energy products.
The Buyers’ Principles provide a coordinated starting point for what these companies need in terms of options, financing, contracts and emissions levels. The inaugural signers are Bloomberg, Facebook, General Motors, Hewlett-Packard, Intel, Johnson & Johnson, Mars, Novelis, Procter and Gamble, REI, Sprint, and Walmart. I’m hoping that this will be an unmistakable unmet need signal to the energy market that yes, business wants more renewables and is willing to pay for them.
In my mind, these groups are coming together now for one profound reason. With government paralysis on one side and entrenched lobbying for the fossil fuel status quo on the other, the Cavalry isn't coming. If renewable energy and climate action are going to be truly become Business as Usual for successful companies — as Ceres’ clean energy report posits — then business has to make it happen.
Together, I see all these efforts leading up to this September's UN Climate Summit in New York City, where business will be asked to take on larger and more meaningful commitments. Just last week, the UN event's organizers and partners called for business leaders willing to stand up for carbon pricing "as a necessary and effective measure to tackle climate change."
And then, it will be time to take all this positive forward momentum to the COP21 meeting in Paris in December 2015. That’s where, once again, the entire world will attempt to agree on climate action and who is going to pay for it. I’m hopeful that, by the time we get there, collaborative efforts like these will have blazed the trail for business to be a major part of the solution.
Published Jul 18, 2014 1pm EDT / 10am PDT / 6pm BST / 7pm CEST