In NACD BoardTalk’s “Climate Governance Must Include Lobbying Oversight,” Ceres addresses the apparent disconnect between some companies’ climate change-related commitments and pronouncements and their public policy activities (e.g., direct and indirect lobbying). Ceres’ analysis of 96 of the S&P 100 companies as of 2019 purportedly revealed these alleged misalignments:
- 74% of companies acknowledge climate change as a material risk in financial filings; however, a majority disclose concerns over the short-term impact of regulation and legislation to address climate change.
- 76% of companies have publicly affirmed the science of climate change; however, only 40% have engaged directly with lawmakers on the importance of specific science-based policies to mitigate the impacts of climate change and 21% have lobbied in opposition to science-based climate policies notwithstanding their establishment or commitment to emissions reduction targets.
Ceres recommends companies take certain steps to align their climate change commitments and pronouncements with their public policy activities, including assessing the value-creation opportunities supported by climate regulation (and conversely, the challenge of pursuing innovative climate change mitigation strategies without government support); establishing board oversight of climate change and public policy to promote alignment between the two; and regularly conducting internal audits of the company’s climate positions to ensure consistency with lobbying and other public policy activities.
See our prior reports: “ICCR Reports on Climate Lobbying Proposal Initiative,” "Investors Reiterate Call for Climate Lobbying Alignment & Disclosure," "Ceres: Alignment of Climate Action & Lobbying Activities," and "Climate Change Lobbying Framework Forthcoming" and additional information & resources on our Climate Risk & Disclosure page.
This post first appeared in the weekly Society Alert!