In 2017, the US, famously and controversially, made the decision to withdraw from the Paris climate change agreement. And some of the 187 countries that remain in the agreement are struggling to meet their commitments. Recently, Australia came under international criticism[1] for proposing to use a dubious accounting method to meet its 2030 carbon reduction targets.
Sweeping climate action on a national and international level faces hurdles such as divided governments, intense lobbying, and climate change denialism. According to the World Economic Forum, 67 countries have ambitions to be carbon-neutral, but only about eight "have strong targets supported by an effective policy framework[2]."
In response, the private sector is playing a much bigger role in climate action and sustainability. In the US, thousands of individual enterprises, universities, cities, states, and other organizations have committed to the goals of the Paris Agreement as part of the We Are Still In[3] initiative. Private sector organizations are announcing the appointment of chief sustainability officers and ambitious carbon reduction targets. Global management consultancy EY recently appointed its global sustainability leader; two weeks later, the firm announced that it would become carbon-neutral by the end of 2020[4].
Why is the private sector stepping up where many federal governments are falling short? Two reasons:
- It is in their own self-interest. Companies are already feeling the effects of the increasing frequency and intensity of wildfires, droughts, and hurricanes, the supply chain impact of biodiversity loss and water scarcity, and the increasing political instability caused by climate refugees and migration. So the private sector is taking action. To secure its supply chains against biodiversity loss, Starbucks works directly with farmers to help them adapt their practices to climate change. To ensure their energy independence while promoting renewable energy, NV Energy will