Ali Sheridan: Firms must choose between acting responsibly or locking us into an unsafe future

Companies have generated a flurry of net zero climate change plans — but many fall far short of true corporate responsibility

The starkness of the IPCC report was heightened by events such as the catastrophic wildfires in Evia, Greece. Picture: Thodoris Nikolaou/AP

Following the publication of the Intergovernmental Panel on Climate Change report, there can be no doubt about the size of the challenge ahead. This report, the sixth of its kind, clearly showed there is a  limited window to prevent the worst outcomes.

The recent increase in coverage of climate issues has also been reflected in the growth of job opportunities: Job titles such as head of sustainability, environmental, social and corporate governance manager, and corporate sustainability responsibility manager, are appearing across the job boards. There is also a marked increase in the number of academic courses. 

It would be easy to assume that this shows that awareness of the climate challenge is growing, and that business is responding. But this may not be the case. 

Sustainability slid down the agenda

Over a decade ago, corporate sustainability had begun to move beyond its roots in energy and water saving, and began to take a much wider approach, known as corporate social responsibility, or CSR. 

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CSR introduced the social side of sustainability. It brought issues such as workers’ rights, human rights, supply chain conditions, and charity partnerships into sustainability strategies. But as the recession took hold, corporate sustainability slid down the agenda.  

Pressure is now being put on big industries to set more ambitious strategies. Investors are beginning to leverage their influence; employees are demanding change; regulation and policy is starting to catch up; mandatory reporting regimes are being introduced; and the risk of corporate climate litigation continues to grow.

Net-zero strategies

There has been a flurry of net zero strategies from companies. But a look under the surface reveals the same weaknesses as in the past. There is little detail about the strategies; there is an over-reliance on carbon offsetting and trusting too much in unproven carbon capture technology; as well as a lack of investment. 

Corporate sustainability can no longer be about tinkering around the edges. For almost every industry will have to go beyond renewable energy and recyclable packaging, and to embrace complete transformation. 

In the coming months, we will be bombarded with new corporate climate announcements and strategies. Terminology such as decarbonisation, net-zero, climate neutral, climate positive, carbon budgets, ESG, and circular economy will be prominent in commentaries from industry. 

Initiatives must deliver change

But we must ask if the initiatives are delivering change, or are in fact distracting from the bigger transformation that needs to happen.

The challenge facing industry is a big one. It means figuring out how to reduce all emissions, including indirect emissions from suppliers, distribution, and even consumer behaviours. And the emission reduction targets have to be based on the science. 

It means not relying on offsets to balance emissions, but to focus on reducing emissions. It means frontloading efforts between now and 2030 and supporting and not standing in the way of national climate action efforts. 

Companies will also have to address biodiversity and social sustainability issues. And for industries that are not large emitters, it will mean assessing the services they provide and the clients they work with. They will also have to question whether their work and influence is helping or hindering the climate transition.

Complexity is no excuse for inaction

The complex challenges facing industry can no longer be used as an excuse for inaction. The upcoming Climate Action Plan in Ireland is a unique opportunity for industry to engage and support more ambitious climate action. 

The coming months will likely see more focus on how our economic models can address the climate crisis. But for now the focus must be on immediate and ambitious action. 

The business community has a choice — accept the science and engage constructively in designing and supporting an ambitious and fair transition, or delay and be complicit in locking us into an unsafe future.

• Ali Sheridan is a sustainability and climate adviser and lecturer