{"id":15255,"date":"2022-04-07T01:56:23","date_gmt":"2022-04-07T01:56:23","guid":{"rendered":"https:\/\/energytracker.asia\/?p=15255"},"modified":"2022-04-07T01:56:28","modified_gmt":"2022-04-07T01:56:28","slug":"net-zero-companies-vague-pledges-lead-to-greenwashing","status":"publish","type":"post","link":"https:\/\/energytracker.asia\/net-zero-companies-vague-pledges-lead-to-greenwashing\/","title":{"rendered":"Net-Zero Companies: Vague Pledges Lead to Greenwashing"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p id=\"h-companies-achieving-net-zero-is-critical-in-the-ability-of-nations-to-meet-their-larger-decarbonisation-plans-the-general-consensus-is-that-this-needs-to-happen-by-2050-but-some-experts-go-and-say-it-needs-to-happen-even-sooner-regardless-of-the-timeline-it-s-agreed-that-change-needs-to-happen-and-it-needs-to-happen-fast\">For many nations around the world, companies achieving net-zero is critical in order to meet their larger decarbonisation plans and net-zero commitments. The general consensus is that this needs to happen by 2050, but some experts say it needs to happen sooner. Regardless of the timeline, change needs to happen \u2013 and it needs to happen fast.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pressure-on-companies-to-achieve-net-zero-emissions\">Pressure on Companies to Achieve Net-Zero Emissions<\/h2>\n\n\n\n<p>Countries and companies are coming under increasing pressure from multilateral agreements, governments, and the public to reduce their carbon footprints to limit global warming and reach net-zero emissions. Consumers, investors, and business partners are all placing more value on the environmental policies that companies abide by.<\/p>\n\n\n\n<p>Companies are being pushed to make positive environmental changes to their business activities and adopt energy efficiency. As a result, most businesses have now announced climate change pledges. Most of these revolve around going net-zero by 2050 or earlier \u2013 but there is a problem with that.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/Cliamte-Action-Tracker.png\" alt=\"Predictions for carbon emissions in 2030.\" class=\"wp-image-15263\" width=\"808\" height=\"326\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/Cliamte-Action-Tracker.png 624w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/Cliamte-Action-Tracker-300x121.png 300w\" sizes=\"auto, (max-width: 808px) 100vw, 808px\" \/><figcaption>Source: <a href=\"https:\/\/climateactiontracker.org\/publications\/glasgows-2030-credibility-gap-net-zeros-lip-service-to-climate-action\/\" target=\"_blank\" rel=\"noreferrer noopener\">Climate Action Tracker<\/a><\/figcaption><\/figure><\/div>\n\n\n\n<p>Studies show that many <a href=\"https:\/\/time.com\/6117635\/companies-net-zero-greenwash\/\" target=\"_blank\" rel=\"noreferrer noopener\">businesses are not backing up their claims<\/a>. They make vague net-zero pledges to appease stakeholders and to look favourable in the public eye. However, many of these companies continue to operate without keeping their pledges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-helpful-are-net-zero-pledges-in-achieving-net-zero-targets\">How Helpful are Net-zero Pledges in achieving Net-Zero Targets?<\/h2>\n\n\n\n<p>There are a few issues when it comes to net-zero pledges:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The meaning of &#8220;net-zero&#8221; is not clearly defined.<\/li><li>We are not holding companies accountable for their claims.<\/li><li>Companies can exaggerate their results.<\/li><li>Companies may buy carbon offsets without changing their behaviour.<\/li><li>There is no universal rule on which emissions should be in a company\u2019s report.<\/li><\/ul>\n\n\n\n<p>Companies pay attention to the environment, and talking about its importance is good. Some companies are making genuine efforts to reduce their own emissions with honest and transparent reporting. However, some are not.<\/p>\n\n\n\n<p>Companies use many terms that more or less mean the same thing: net-zero, carbon-neutral, climate positive, carbon-negative and net-negative emissions. The definitions of which are largely open to interpretation. There is no standard.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.cnbc.com\/2021\/08\/18\/apple-amazon-exxon-and-the-toughest-carbon-emissions-to-capture.html\" target=\"_blank\" rel=\"noreferrer noopener\">There is also no regulatory body<\/a> to police the claims made by companies. Also, only a few organisations will review companies\u2019 claims and compare them to their net-zero strategies and progress. Therefore, the responsibility for a verdict on climate responsibility falls to the court of public opinion.<\/p>\n\n\n\n<p>Without strict regulation and enforcement, companies can exaggerate their environmental stewardship and the umbrella of effects under their jurisdiction. Some of the <a href=\"https:\/\/time.com\/5669025\/rewild-land-europe\/\" target=\"_blank\" rel=\"noreferrer noopener\">offsets purchased by companies<\/a> are based on claims that are difficult to verify and thus lead to inaccurate net emissions reporting.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"850\" height=\"708\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/carbon-offsets.jpg\" alt=\"Carbon offsets are a common way that net-zero companies work to achieve net-zero.\" class=\"wp-image-15269\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/carbon-offsets.jpg 850w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/carbon-offsets-300x250.jpg 300w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/carbon-offsets-768x640.jpg 768w\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" \/><figcaption>Source: <a href=\"https:\/\/terrapass.com\/climate-change\/carbon-offsets-explained\" target=\"_blank\" rel=\"noreferrer noopener\">Terrapass<\/a><\/figcaption><\/figure><\/div>\n\n\n\n<p>Finally, not all companies report their emissions in the same way. It\u2019s been generally accepted that Scope 1 and Scope 2 emissions, which come from a company\u2019s direct activities, should be reported. However, <a href=\"https:\/\/ghgprotocol.org\/sites\/default\/files\/standards_supporting\/FAQ.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Scope 3 emissions<\/a>, which account for their supply chain, are a grey area. Some companies report Scope 3 emissions, but many do not.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-companies-in-the-global-economy-use-net-zero-to-hide-their-dirty-habits\">How Companies in the Global Economy Use Net-zero to Hide Their Dirty Habits<\/h2>\n\n\n\n<p>Like those listed above, many factors allow companies to use net-zero claims to hide their dirty habits. <a href=\"https:\/\/www.gobyinc.com\/avoiding-greenwashing-in-esg-marketing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Stock market performance<\/a> is tied to positive environmental press announcements. There is a clear incentive to to promote green policies publicly.<\/p>\n\n\n\n<p>These days, it can be difficult to tell which companies are serious about making changes to protect the environment and which companies are just making baseless claims. Two of <a href=\"https:\/\/unearthed.greenpeace.org\/2021\/10\/25\/shell-oil-carbon-neutral-offsetting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Shell\u2019s most important carbon offsetting projects<\/a> have not demonstrated any clear benefit to the climate; <a href=\"https:\/\/www.businessinsider.com\/walmart-targets-zero-carbon-emissions-2040-not-suppliers-2020-9\" target=\"_blank\" rel=\"noreferrer noopener\">Walmart<\/a> and <a href=\"https:\/\/www.aramco.com\/en\/sustainability\/climate-change\/managing-our-footprint\" target=\"_blank\" rel=\"noreferrer noopener\">Saudi Aramco<\/a> do not pay any attention to Scope 3 emissions; <a href=\"https:\/\/corporate.exxonmobil.com\/Sustainability\/Energy-and-Carbon-Summary\/Scope-3-emissions\" target=\"_blank\" rel=\"noreferrer noopener\">Exxon reported its Scope 3 emissions<\/a> for the first time in 2021 but quickly voiced its displeasure with the process and delegitimised its impact. They have distanced themselves from their Scope 3 emissions, <a href=\"https:\/\/abcnews.go.com\/Business\/experts-slam-oil-giant-exxon-mobils-net-ambition\/story?id=82325190\" target=\"_blank\" rel=\"noreferrer noopener\">blaming the consumers<\/a> who use their oil and gas products.<\/p>\n\n\n\n<p><a href=\"https:\/\/zerotracker.net\/\" target=\"_blank\" rel=\"noreferrer noopener\">Net-zero Tracker<\/a> has assessed the world\u2019s largest publicly traded companies to find that their <a href=\"https:\/\/time.com\/6117635\/companies-net-zero-greenwash\/\" target=\"_blank\" rel=\"noreferrer noopener\">policies and activities generally undermine any real opportunity<\/a> to achieve net-zero operations. There needs to be a standard reporting mechanism if we want to be serious about living in a carbon-neutral world.<\/p>\n\n\n\n<div id=\"article-box-block_6243f77a81b2a\" class=\"article-box\">\n    <div class=\"d-flex flex-row justify-content-between align-items-center\">\n        <div class=\"article-image\">\n            <img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1078\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash.jpeg\" class=\"attachment-full size-full wp-post-image\" alt=\"Net-Zero Accountability and Its Critical Importance for Our Future, Pixabay\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash.jpeg 1920w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash-300x168.jpeg 300w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash-1024x575.jpeg 1024w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash-768x431.jpeg 768w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/hugh-whyte-J8bU6-tAGy8-unsplash-1536x862.jpeg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/>        <\/div>\n        <div class=\"article-detail\">\n            <h5>Net-Zero Accountability and Its Critical Importance for Our Future<\/h5>\n            <a class=\"small\" target=\"_blank\" href=\"https:\/\/energytracker.asia\/net-zero-accountability-and-our-future\/\">Read more<\/a>\n        <\/div>\n    <\/div>\n    <style type=\"text\/css\">\n        #article-box-block_6243f77a81b2a {\n        }\n        .article-box{\n            background-color: #f4f4f4;\n            border-top: 5px solid #FCDA64;\n            padding: 1em;\n            margin: 2em 0;\n        }\n        .article-box .article-image{\n            width: 40%;\n        }\n        .article-box .article-image img{\n            width:100%;\n        }\n        .article-box .article-detail{\n            width: 55%;\n        }\n        .article-box .article-detail a{\n            color: #183260;\n        }\n    <\/style>\n<\/div>\n<\/a>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-can-net-zero-companies-do-to-prevent-greenwashing-and-reduce-greenhouse-gas-emissions\">What Can Net-Zero Companies Do to Prevent Greenwashing and Reduce Greenhouse Gas Emissions?<\/h2>\n\n\n\n<p>Greenwashing is the act of exaggerating or falsifying carbon emissions reports or advertising. It is highly frowned upon, but companies do it to appear positively in consumers, investors, and partners&#8217; eyes and minds. Companies that participate in greenwashing face a lot of backlash from environmentalists and the public. They lose respect, trust, investments and sales, which are hard to earn.<\/p>\n\n\n\n<p>Reports find that <a href=\"https:\/\/www.firstinsight.com\/white-papers-posts\/gen-z-shoppers-demand-sustainability\" target=\"_blank\" rel=\"noreferrer noopener\">73% of millennials and 62% of Gen Z<\/a> prefer to support sustainable brands. In the days of rapid information transfer and social media, greenwashing can mean the death of a company in the eyes of sustainability-minded individuals.<\/p>\n\n\n\n<p>The best thing net-zero companies can do to save face, even if they are big polluters, is to be completely honest and transparent about their activities. Providing a clear strategy with measurable goals and objectives will signal to the public that the company is serious about making a change. Being honest, instead of greenwashing, is the best way to&nbsp;<a target=\"_blank\" href=\"https:\/\/www.gobyinc.com\/avoiding-greenwashing-in-esg-marketing\/\" rel=\"noreferrer noopener\">build trust with investors<\/a>, consumers and other brands. It is also the best way to ensure a better future for the planet.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"575\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-1024x575.png\" alt=\"Net-zero companies design text\" class=\"wp-image-16382\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-1024x575.png 1024w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-300x168.png 300w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-768x431.png 768w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-1536x863.png 1536w, https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/04\/Net-Zero-Pledges_Design-Text-2048x1150.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-file\"><a href=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/Vague-Net-Zero-Pledges-By-Companies-Leads-to-Greenwashing.pdf\">Vague-Net-Zero-Pledges-By-Companies-Leads-to-Greenwashing<\/a><a href=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2022\/03\/Vague-Net-Zero-Pledges-By-Companies-Leads-to-Greenwashing.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>There is growing demand for companies to focus on their climate impacts. Many businesses are vocalising their climate pledges and net-zero goals. Yet, a lack of oversight and verification allows some of them to slip through the cracks &#8211; committing to public goals but failing to act on them. <\/p>\n","protected":false},"author":13,"featured_media":16327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[526],"tags":[274,531],"hashtags":[],"class_list":["post-15255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-greenwashing","tag-net-zero","tag-net-zero-pledges"],"acf":{"custom_author_name":"","article_pdf_file":false,"poll_vote":0,"short_desc":"Investors, consumers, and governments are starting to demand that companies focus on their climate impacts. Many businesses are vocalising their climate pledges and net-zero goals. Yet, a lack of oversight and verification allows some of them to slip through the cracks - committing to public goals but failing to act on them. 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