Align Advocacy Efforts
Environmental Defense Fund
Companies have a large role to play in the transition to a net zero economy, but they alone cannot bring about the climate transformation – for their business and the wider economy. To achieve your company’s climate goals, it is important to advocate for robust public policies, regulations, and investments that are necessary to support corporate action and drive economy-wide decarbonization.
Your company’s emissions reduction actions and internal business strategies alone will not be able to secure the economy-wide shifts we need to address climate change. It is important to also identify what actions your company is taking now and in the near term to ensure that the company is not lobbying against (directly or indirectly through trade associations) proposed policies that will contribute to emission reductions and a just transition.
You should also analyze whether your company’s trade associations’ actions are supportive or contrary to your climate goals. It is recommended to disclose individual lobbying and trade association memberships annually. InfluenceMap has several helpful insights related to corporate climate action and lobbying, including LobbyMap Scores ranking companies and industry associations.
Step 1: Determine if your company will participate in any lobbying, political giving, or trade association activity as it relates to climate
How does your company plan to engage in policy activities related to climate? It is important to consider how your company currently engages in both direct and indirect advocacy efforts, whether that is through trade associations, political giving, or urging other actors such as governments at the local, state, national, and international levels to act a particular way on climate.
Case Study
2022 Inflation Reduction Act
As highlighted in Ceres’ Blueprint for Implementing a Leading Climate Transition Action Plan, after 2,900 U.S. companies and associations advocated in favor of the business benefits of the 2022 Inflation Reduction Act (IRA), the law passed as the most significant investment in clean energy and climate change in U.S. history. Since then, $352 billion in public and private funds have been invested across the U.S., more than 270,000 jobs created, and 523 clean energy products have begun or expanded. In addition to being good for business, the Department of Energy estimates that the IRA and the Infrastructure Investment and Jobs Act will cut U.S. greenhouse gas emissions by up to 41% from 2005 levels by 2030. Coupled with federal, state, and local government actions, these reductions put within reach the U.S.’ nationally determined contribution under the Paris Agreement of 50-52% reductions by 2030 and net zero by 2050.
Step 2: Disclose your lobbying, political giving, and trade association activity as it relates to climate
In your climate transition action plan (CTAP) you should also disclose the priority policies that your company supports at the local, state, national, and international levels and detail how these relate to your climate priorities for the next 1 – 3 years. Disclosing is important to not only show stakeholders your stance on climate but also help build collective momentum for change and encourage other actors to follow suit.
Case Study
H&M
One of the pillars of H&M Group’s CTAP is advocating for systematic change, which includes advocating for policy that aims to limit global temperature rise to 1.5 °C and pushing for legislation that accelerates the decarbonization of their value chain, as well as engaging and collaborating with peers and others to enable and inspire global climate action. They also disclose their policy priorities of renewable energy, energy efficiency, target integration, intermediary solutions, raising awareness and advocacy for climate targets.
Step 3: Commit to ensure policy engagement and advocacy are aligned with your company’s climate targets and develop a process in place to implement this commitment
It is best practice to publicly commit to 1.5º C lobbying and transparency. You can include this commitment in your CTAP, as well as any annual lobbying reports. To ensure this commitment is implemented, ensure your company has oversight of climate engagement efforts at the board and executive level and that your climate advocacy work is aligned with the rest of the company, including the government relations team.
To learn more, visit the NZAA’s “Advocate for Public Policy” Pathway.
Following this Action Step, we recommend you move onto Action Step 6: Plan for a Just Transitionfor detailed guidance on developing a roadmap to reducing emissions.