Voters Want Companies to Improve Transparency Around Their Climate Emissions
By Danielle Deiseroth
With consumers indicating they are more likely to reward companies for taking action to address climate change, many businesses are now plotting sustainability strategies for their firms. However, though more major corporations are making bold pledges to address climate change, many are failing to make measurable progress toward their emissions reduction goals.
New Data for Progress polling underscores that voters want businesses to go beyond empty pledges and disclose their climate impact. Over two-thirds of voters (68 percent) say it is “very important” or “somewhat important” that the companies from which they purchase goods and services are transparent about how their business activities are impacting climate change.
The clock is running out to meaningfully address climate change, and any time spent on corporate greenwashing is irresponsible and inexcusable given the scale of emissions reductions necessary to mitigate the worst impacts of climate change. Recognizing this urgency, both the Biden Administration and innovators in the private sector are stepping up to hold businesses accountable for meeting their emissions targets.
Earlier this year, the U.S. Securities and Exchange Commission (SEC) proposed new climate disclosure rules that would require companies to report their climate risks. If the rules take effect, companies would be required to disclose their direct and downstream greenhouse gas emissions. These rules are also overwhelmingly popular: A 2021 Data for Progress poll found that 62 percent of voters agree the federal government should create financial regulations to hold companies accountable for their climate emissions.
In the private sector, new startups are improving carbon accounting accessibility and transparency. KlimaDAO, an organization that uses blockchain technology to connect purchasers with carbon offsets, recently introduced a new toolkit to enable and verify the retirement of carbon offsets. This transparency is necessary to ensure that high-quality carbon offsets — that is, projects that actually reduce more carbon emissions than they produce — are not subject to excessive brokerage fees.
Even investors in Silicon Valley and on Wall Street see that all signs are pointing toward transparency around corporate emissions reductions. Earlier this year, the tech startup Watershed, a carbon accounting platform that allows businesses to more effectively implement and report on their emissions reduction plans, received a $70 million Series B investment and reached a $1 billion valuation for its product.
While innovations and investments from the private sector can move the ball forward, corporate shareholders and employees must step up and push executives to put their money where their mouth is. Polling from Data for Progress and As You Sow found that 58 percent of voters support linking corporate executives’ compensation to measurable reductions in carbon emissions.
The scale of the climate crisis demands that businesses meet the moment and make measurable, verifiable progress toward reducing their greenhouse gas emissions. Moreover, voters widely agree that businesses should be more transparent about their impact on the environment. As new innovations in blockchain and carbon accounting technology are improving transparency around their greenhouse gas emissions, it is critical that both the public and the federal government hold corporate America’s feet to the fire for meeting emissions targets.
Danielle Deiseroth (@danielledeis) is the Lead Climate Strategist at Data for Progress.