In addition to changing the financing for the energy transition, the business has a crucial role to play in advancing climate justice.
It is very essential for business activity to be backed by governmental legislation, investments, and incentives in order to achieve net-zero emissions by 2050.
While many companies are making an effort to safeguard people most impacted by the climate issue by establishing the requisite aggressive climate objectives in accordance with the Paris Agreement, this simply isn’t enough.
The good news is that corporations can support climate justice initiatives in a variety of ways, including by studying what others have previously accomplished.
Businesses can take steps to put social justice at the center of their core activities, including those related to climate change, within their own operations, enable others to do the same, and influence policies to lessen systemic inequities at their source, for instance, by taking inspiration from the cities of Portland, Oregon, and Oakland, California.
Here are some ways that businesses can help support climate justice.
Table of Contents
Recognize Social Impact
It is not an easy undertaking, but before a corporation can take action on environmental justice, it must first understand how it affects local communities and maintains racial inequities.
Social effect metrics are often qualitative, a little arbitrary, and difficult to find.
Businesses may examine the B Corp Certification evaluation requirements or reference the International Union for Conservation of Nature’s instructions for completing a social impact assessment as a starting point.
Businesses should, at the very least, think about the communities they are affecting, whether or not they are systemically oppressed, whether or not there are alternatives that would have a less negative effect, and whether or not they are actively engaged in the areas they are affecting.
These inquiries should enable a corporation to focus on particularly problematic acts or locations while also providing a broad understanding of their climate justice effect.
Engage those who are most impacted by the climate crisis
Tommy Mello, owner of $100M+ business A1 Garage Door Service states: “Determine the climate effect of your company and gather information on how it affects the stakeholders and communities who are most impacted by structural inequalities (climate risk and vulnerability assessments).
Participate in planning for community-driven climate resilience with them.
For instance, companies can enter into Community Benefits Agreements with people who live close to their facilities to increase climate benefits like urban tree cover, home weatherization, and access to electric vehicles (EVs).
Businesses can also diversify their value chains to support small, disadvantaged business enterprises (DBEs) with sustainable practices.”
Work together to increase the impact
Companies should engage with people from other sectors and with knowledgeable stakeholders since the climate problem is too vast to be solved by one company acting alone.
Companies may sign the Business Pledge for Just Transition and Decent Green Jobs, for instance.
Additionally, Starbucks is working with partners to determine how to integrate climate justice into all facets of its operations, including how it purchases renewable energy and develops infrastructure.
Pay Attention to Community Voices
Saj Munir, a UK-based business owner shares: “Local communities are the ones that really know what is best for them. Businesses often don’t need to recreate the wheel when it comes to creative environmental justice solutions; they just need to pay attention to the impacted parties.
This indicates that providing a place for constructive community participation and amplifying the views of minorities is crucial, whether via regular forums or designated spokespeople who respond to public comments.”
Plan formally for environmental justice
Laying out an organization’s environmental justice objectives is the next stage after an organization has assessed its effect and the requirements of the neighborhood.
A formalized environmental justice strategy outlines strategies to accomplish environmental justice objectives and communicates the company’s recognition of the connection between racial justice and climate change.
It is crucial to make this strategy available to the general public because it increases transparency and enables customers to hold businesses accountable for their EJ commitments.
To guarantee that both sets of objectives can be accomplished concurrently, this strategy should ideally be linked with the business’s current sustainability or climate action plan.
Assist value chain partners
Rhett Stubbendeck, CEO of LeverageRx shares: “You must also see your value chain through a human rights perspective in order to practice climate justice. Only work with suppliers that share your commitment to improving climate justice.
When alignment does not seem to be achievable, use your influence, even if it means making unpopular choices. The possibility and risk for a fair transformation are there in your value chain.”
Give your opinion
Carl Jensen, owner of Compare Banks shares: “Your voice finally gains strength while you are in business. Utilize the social acceptability of your business to advocate for environmental causes and the survival of people who have experienced prejudice, alienation, and exclusion in the past.
You have a responsibility to play in preserving the survival of these communities.
As we work to reduce emissions and enhance the lives of disadvantaged populations impacted by global crises, including pandemics and climate change, we must maintain the pace of climate justice.
So, let’s commit to creating a future that is both really sustainable and inclusive that benefits everyone.”
Engage in lobbying along with your principles for climate justice and refrain from doing so
Corporate money and government decision-making are inextricably linked.
It happens all too often that companies openly support carbon prices or stricter penalties for polluters only to discover afterward that they have spent millions on opposing lobbying campaigns and contributions to politicians who favor fossil fuel development.
In essence, you are undercutting your own climate strategy, falling short of your commitments to climate justice, and endangering long-term economic viability if your organization supports initiatives and people that have different beliefs and objectives from your own.
Make sure you pay your taxes
It will be necessary for your business (and others) to pay their fair share of taxes for climate justice to rely upon, at least in part, transformational, publicly financed initiatives to strengthen and protect social support networks.
The secret to short-term gain and long-term misery, for your firm and especially for those who are most vulnerable, is to avoid taxes and take advantage of loopholes.
There is a role for community investment, but top businesses understand that the key to bringing about significant, long-lasting, systemic change is to pay the necessary amount of corporation tax on time in the right jurisdiction(s).
