The SB Brand Transformation
Roadmap
guides companies on the pathway to continuous improvement through performance
against five key characteristics.
“Transparent and Proactive Governance” is one of those characteristics. The
third of the five levels of performance calls on companies to ensure:
Participation in trade associations and other similar bodies is aligned with company sustainability priorities.
The top level of performance, level five, calls for a:
Demonstrated willingness to lead and convene other brands and the broader economic ecosystem in an effort to “change the rules of the game.”
If there ever was a critical time to do this, it’s now — as we start the run-up
to the all-important COP26 in Glasgow next year.
On October 15, we at WRI joined 10 partners in the
environmental and sustainable business space to introduce the AAA
Framework,
which calls on companies to advocate for smart policies based in science,
align their trade associations with this position, and allocate political
spending to advance these outcomes.
WRI has long been active on the role of corporate engagement in policy and trade
associations, in particular; which fits squarely within the align component of
the AAA Framework. In 2013, we jointly released a Guide for Responsible
Corporate Engagement in Climate
Policy,
to which 130 companies have made a public commitment.
What does good trade association alignment look like?
We see two different paths on the road to trade association alignment, but they
both start with the same step: a thorough accounting of your company’s current
position. How does your company’s stance on climate change compare to that of
the organizations you pay to represent your interests? For most of you, we
suspect this analysis will fall short of a 100 percent match. For a few, this
may be a deliberate strategy to draw praise for a climate-friendly reputation
while allowing a trade association to ensure a “business as usual” environment.
For others — most, we hope — misalignment is inadvertent, a lack of awareness of
the climate stance and impact of your trade association. And some of you may be
aware of the difference but have made a conscious decision to stay a member
because other issues the association addresses are also important.
We know companies have many issues to juggle and that representation on one
issue can outweigh misrepresentation on another. However, on climate, we don’t
have time to waste.
If an audit of your trade association memberships reveals misalignment, the
leadership criteria of our new framework offers a choice. Leave an association
due to differences on climate or stay and effect change from within. Here are
five steps your company can take to make sure this happens:
1) Conduct an audit
Complete a thorough assessment of your associations’ positions on climate
change, as compared to internal company positions. Make the audit results public
and commit to re-auditing associations on a regular basis.
2) Develop a strategy
Armed with information on areas of misalignment, make a plan to self-correct —
including developing criteria for how to make decisions around association
membership. What conditions must be present for you to leave? What conditions
must be present for you to stay and commit to changing your association’s
position from within? Be clear. Set up explicit criteria for what success looks
like and appropriate timelines for effecting change.
3) Speak out
When a trade association speaks or acts on a climate issue with which you
disagree, it is no longer sufficient to point at your company’s own words and
actions, and say it is clear you have a different position. Tell your
association’s leaders that they cannot claim or even imply that they represent
you on climate. Every time they take action or make a statement that goes
counter to your position, make that difference explicit, publicly.
4) Leave, if necessary
Trying to achieve alignment through engagement may not pay off. Following
criteria outlined in your company’s strategy, leave
associations
where attempts to change prove ineffective or insufficient and/or where leaving
is perceived to be most aligned with company goals and climate needs.
5) Be transparent
Publicly disclose all positions, actions and outcomes; including listing all
trade association memberships, audit results and efforts to hold associations
accountable.
The AAA Framework raises the bar when it comes to corporate leadership on
climate change. However, many companies are already racing ahead.
Unilever CEO Alan Jope
wrote an open
letter
to the company’s trade associations and business groups, asking them to confirm
their current lobbying position on achieving a 1.5° future. Mars,
Nestlé and Unilever all pulled
out of the Grocery Manufacturers Association to form the Sustainable Food
Policy Alliance (with Danone North
America), citing climate as a key
reason for the split. Shell recently published a report evaluating the 19
industry associations to which it belongs on climate-related policy, ultimately
leaving the American Fuel & Petrochemical Manufacturers
Association over
“material misalignment” on climate change policy. And a group of companies
within the US Chamber of
Commerce has
been a critical force in shifting the association’s stance on climate change,
leading to the formation of a new Task Force on Climate Actions and public
recognition by the Chamber that “the climate is changing and humans are
contributing to these changes.”
We hope these examples are just the beginning. Now is the moment to build the
next wave of corporate alignment on climate policy and advance your company’s
position on the SB Brand Transformation
Roadmap.
Note: A version of this
post
originally appeared on World Resources Institute’s Insights blog. Unilever,
Mars Inc., Nestlé and Shell have provided financial support to WRI. This blog
post solely reflects the views of the authors.
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Global Director, Sustainable Business
WRI
Kevin Moss is the Global Director of the Business Center, WRI’s program that helps the private sector develop strategies that support sustainable strategies and drive growth.
Associate, Business Center
WRI
Amy Meyer is an Associate in WRI’s Business Center. She focuses on policy leadership within the private sector, including growing the institute’s strategy to mobilize positive business influences on climate legislation at the state and federal level.
Published Jan 6, 2020 7am EST / 4am PST / 12pm GMT / 1pm CET