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A new report has found that despite public-facing climate goals, many of Australia’s top companies are lobbying against climate action behind closed doors – and they can be held legally responsible. We break down why this matters, and what you as an employee can do to help bring about change.
Gaslighting or greenwashing?
At this point in the climate emergency, denial is no longer an issue and most businesses have started to respond with some commitments and targets. This means that here in Australia, the majority of large companies – including some of our biggest polluters – show top-line support for climate action. What does this look like?
- They publicly acknowledge that climate change poses a huge challenge and express support for the Paris Agreement.
- They have set (sometimes very ambitious) climate targets.
- Sometimes they have developed an action plan for reaching their targets.
But both in Australia and around the world, there is a growing disconnect between what companies say they’re doing about climate change, and what their advocacy and lobbying efforts behind the scene show they’re doing about climate change. And the problem is a big one.
The scale of the problem
A new report from Climate Integrity titled “Risky Influence” has uncovered just how big of a problem this really is. The investigation looked at nine of Australia’s largest companies' engagement on climate policy, and found a dramatic misalignment between their public-facing statements and what is happening behind closed doors.
How? Many companies are undermining their own climate efforts by delaying, weakening or obstructing progressive climate policy – either by directly lobbying against climate policy, or doing so via their trade associations. And then there are the “fence sitters”– businesses who have a lot of political sway and are hesitant to engage or have chosen to stay silent on environmental policy, allocating their lobbying dollars elsewhere.
What’s at stake?
In short, a lot! Climate Integrity worked with the Environmental Defender’s Office to outline the potential legal risks faced by company directors because of this misalignment. There are already so many reasons why companies should support positive climate policy – from creating and sustaining a level playing field to actually achieving climate goals faster. But clearly this hasn’t been motivation enough. Now, if directors don’t align their words with actions, there could be very real legal repercussions, including:
- Legal action against the company for misleading or deceptive conduct.
- Increased shareholder advocacy, which could have serious financial consequences for investors.
- Other litigation such as tort-based claims.
Why does this matter?
If you don’t work in a legal or sustainability department, the news of this report may not feel super relevant (and, we know, it sounds very complicated and technical). But, if you’re interested in what companies are doing (or not doing) to mitigate climate change, then this report brings a whole new perspective on one of the key ways companies are responding to the climate challenge: advocacy and lobbying.
To address the climate crisis at the speed and scale required, we need strong climate policy at every level of government: federal, state and local. Voluntary action by companies is necessary but not sufficient in achieving the emissions reduction required to meet the goals of the Paris Agreement. Companies have a key role to play in enabling policy change and they can and must leverage their enormous political influence in support of positive climate policies.
How can companies lead on lobbying and advocacy?
Corporate climate commitments are about more than just emissions. To back up their claims of real and tangible climate action, companies must also act on their advocacy and lobbying efforts by making climate policy a top priority.
For example, Australian companies could have backed specific policies such as the New Vehicle Efficiency Standard Bill or the Climate-Related Financial Disclosures. Right now, some of the policies that need corporate backing include the new national nature protection laws (the EPBC Act or further reforms to the Safeguard Mechanism).
Here’s what a leading climate policy agenda looks like for companies:
- Advocate for policies consistent with achieving net zero emissions by 2050.
- Align trade associations advocacy with net zero emissions goals.
- Allocate advocacy and lobbying spending to advance climate policies
Other suggestions from the UN include for companies to disclose trade association memberships and outline specific policies and regulations they need to cut emissions. You can read their full recommendations here.
What can employees do?
As always, employees can play a central role in driving change by becoming internal advocates for better engagement on climate policy at their company. Engaging on the complex topic of climate policy at your company may feel like a stretch, but trust us, it truly is one of the most impactful things you could be doing to contribute to the solution.
If you work in sustainability, corporate affairs or the legal department:
- Share the Climate Integrity Report with colleagues and work out what internal engagement might look like: What does an effective action proposal look like? How might company directors respond to the risk presented by the report?
If you’re part of a green team or sustainability community:
- Find other people who may be interested in the topic of advocacy and lobbying, and form a working group.
- Conduct some research about your company’s public advocacy efforts – look for public statements in the media and on social channels.
- Organise a meeting with sustainability or corporate affairs teams, and ask them what the company is doing to engage on climate policy.
- Do some research about the trade associations your company is a member of. What is their stance on climate?
Want to learn more about how to take climate action in the workplace? Register now for the next WorkforClimate Academy.
