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By Marc Gunther / The Guardian

2 COMMENTS

W hy Won 'tWhy W on 'tCorporateCorporateA merica Take aA merica Take aStan d onStan d onClimateClimateA ction ?A ction ?The EPA’s Clean PowerPlan might be the onlyhope the US has tomake a real dent inthe climate changebattle. So why aren’tmore companiesonboard?

April 8, 2015

Photo Credit: Flickr/Dawn Ellner

Many environmental groups

consider the Obama

administration’s plan to regulate

carbon-spewing coal plants, which

aims to cut carbon pollution by

30%, as one of our last chances to

win the fight against cl imate

change.

◀

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But the vast majority of their top

corporate partners – companies

like Coca-Cola, PepsiCo, FedEx,

UPS, Target and Walmart, which

have worked with environmental

NGOs for years – aren’t backing

them up, according to a Guardian

survey.

The survey consisted of calls and

emails to nearly 50 corporations

that work with three

environmental groups –

Environmental Defense Fund, The

Nature Conservancy and the World

Wildlife Fund US – that have

identified the Environmental

Protection Agency’s Clean Power

Plan as a top priority. These are

Fortune 500 global companies that

tout their sustainabil ity efforts

and celebrate their environmental

partnerships.

Just three of them – Starbucks,

Mars and Google – support the

Clean Power Plan, which is a

cornerstone of the Obama

administration’s cl imate change

efforts. Caterpil lar and CSX Corp,

a coal-carrying railroad, oppose

the EPA plan. The vast majority

take no position.

The reluctance of companies to

take a stand raises questions

about the depth of partnerships

https://donate.alternet.org/SP15-SPLASH4-1/http://preview.gutools.co.uk/environment/2014/jun/02/obama-rules-coal-climate-change

between companies and NGOs. By

remaining quiet, these companies

make it harder for the EPA to roll

out the plan in the face of

vehement opposition from fossil

fuel companies and Republicans.

“Silence isn’t neutral,” says Anne

Kelly of Ceres, who is organizing

companies to support the EPA.

The lack of public support could

jeopardize the clean power plan,

and – if the US isn’t able to make a

strong climate commitment as a

result – could ultimately

undermine the success of the

global cl imate talks in Paris this

year.

The companies that won’t get

involved say it’s because the

regulation of power plant

emissions is not core to their

business. Environmentalists

maintain that cl imate change is

everybody’s business.

The Environmental Defense Fund,

for example, says the EPA Clean

Power Plan is “the most

significant step in US history

toward reducing the pollution that

causes cl imate change”. More

than 480,000 EDF members have

signed petitions backing the EPA.

Fred Krupp, EDF’s president, said:

“Hiding from challenges is not

what Americans do.”

Yet EDF’s corporate partners

would appear to be doing just

that. AT&T, DuPont, KKR,

McDonald’s, Ocean Spray and

Walmart are all sitting out the

debate over what some activists

http://www.edf.org/climate/a-new-federal-clean-power-plan

describe as a make-or-break

climate change initiative.

It’s the same story with the

corporate all ies of The Nature

Conservancy and World Wildlife

Fund. Lou Leonard, vice president

for cl imate policy at WWF, says:

“We think that companies should,

absolutely, be engaging on

climate policy.”

Thus far, though, WWF has failed

to bring along its partners,

including such corporate giants as

Bank of America, Coca-Cola and

Procter & Gamble. In an email,

Coca-Cola says: “Our

sustainabil ity priorities are

women, water and well-being – all

areas that tie closely to our

business.” Bank of America, which

helps finance the coal industry,

says by email: “We don’t have any

information to share right now on

the EPA Power Plan.” P&G did not

respond to emails requesting

comment. You can read all the

corporate responses to the

Guardian inquiries here.

Their si lence means the loudest

business voices on climate policy

issues in Washington or the state

capitals come from conservative

trade groups, such as the US

Chamber of Commerce, the

National Association of

Manufacturers and the American

Farm Bureau Federation, which

strongly oppose the EPA’s rules.

The stakes are high. Electric

power plants are the single

largest source of carbon pollution

in the US, accounting for roughly

http://www.bloomberg.com/news/articles/2013-04-29/bank-of-america-and-citigroup-biggest-lenders-to-coalhttp://www.theguardian.com/sustainable-business/2015/apr/02/corporate-america-climate-change-position-epa

one-third of US domestic

greenhouse gas emissions. In

2007, the US Supreme Court ruled

that the EPA was required to

regulate greenhouse gases as

pollutants, and in 2013, Obama

announced the agency’s intention

to reduce power plant emissions.

Since then, the EPA has proposed

regulations for new and existing

plants, while delegating many of

the particulars to states to permit

flexible rule-making.

For the most part, supporters and

opponents agree that the rules

would make it al l but impossible

to build new coal plants, requiring

some existing coal plants to shut

down and raising the cost of

electricity.

That’s where the agreement ends.

The EPA says the climate and

health benefits from its plan far

outweigh the estimated annual

costs, a position embraced by

green groups. Aside from EDF,

WWF and The Nature Conservancy,

activist groups l ike the Sierra Club

and Greenpeace also support the

plan. US climate action, they say,

is especially important as the

world moves closer to global

cl imate talks later this year in

Paris. “It is an enormously high

http://www2.epa.gov/carbon-pollution-standards/fact-sheet-clean-power-plan-benefits

priority for The Nature

Conservancy,” says Mark Tercek,

the group’s president and CEO.

The EPA’s opponents, who have

organized as the Partnership for a

Better Energy Future, say that the

power plant rules wil l raise energy

costs to unacceptable levels, put

US manufacturing at risk, threaten

the reliabil ity of the electricity

grid and accomplish l ittle in the

way of greenhouse gas reductions.

The issue has become a partisan

battleground. This month, US

Senator Mitch McConnell, a

Kentucky Republican and the

Senate majority leader, urged

governors to refuse to enact the

power plant rules.

The partisan nature of the debate

is one reason why green groups

have proven unable to enlist the

support of their corporate all ies.

Businesses would rather not

alienate powerful Republicans l ike

McConnell.

As Glenn Prickett, chief external

affairs officer for the Nature

Conservancy, says: “Big

companies that might be wil l ing to

join a bipartisan legislative effort

are not going l ine up behind an

initiative of the Obama

administration strongly opposed

by Republicans.” The Nature

Conservancy and EDF are working

together on a longer-term plan to

build a bipartisan coalition for

climate action in Congress, which

is unlikely unti l after the 2016

presidential election.

The other reason why companies

http://www.nytimes.com/2015/03/20/us/politics/mitch-mcconnell-urges-states-to-help-thwart-obamas-war-on-coal.html?_r=0

have stayed out of the fight is that

they tend to save their lobbying

power for matters that directly

concern their interests. FedEx, for

example, as an operator of trucks,

supported the first-ever fuel

efficiency and greenhouse gas

standards for US commercial

vehicles, which were enacted in

2007. FedEx is also one of the 20

biggest commercial users of solar

energy, according to the Solar

Electric Industries Association.

But Mitch Jackson, who leads

FedEx’s sustainabil ity efforts,

explained by email that the

company isn’t taking a position on

the power plant rules because

they are “not directed at our

industry sector”.

Likewise, the head of government

relations for one of the world’s

biggest companies told the

Guardian: “There’s a reluctance if

a regulation doesn’t get into your

core competency to get into

somebody else’s backyard. It’s an

unspoken acknowledgment that

you stick to your knitting.”

Bank of America, Citi and

JPMorgan Chase all have high-

profi le sustainabil ity programs

and NGO partners, but they won’t

engage in the coal-plant fight.

“We have not taken a policy

position on climate, or any other

issue not directly related to

finance,” says Matthew Arnold,

head of environmental affairs at

JPMorgan Chase.

By contrast, Google, Mars and

Starbucks publicly support the EPA

http://www.seia.org/research-resources/solar-means-business-2014-top-us-commercial-solar-users

plan. In comments fi led with the

EPA, Google asked that the plan

be strengthened. “EPA’s

assessment of the potential for

cost-effective, renewable energy

opportunities is, i f anything,

conservative,” the company said.

Mars and Starbucks signed a letter

to Obama put together by Ceres’

Business for Innovative Climate

and Energy Policy project. Other

companies with $1bn or more in

revenues that signed the letter

include EMC Corp, IKEA, KB Home,

Kellogg, Levi Strauss, Nestle,

Novelis, SunPower, Symantec,

Unilever and VF Corp.

Some companies have staked out a

middle ground. Dow Chemical and

GE fi led comments on the EPA

rules recommending

improvements. Boeing and 3M

have joined companies in the

power sector in a small group

called the National Climate

Coalition, which support EPA’s

goal of significantly reducing

power-plant emissions, but are

trying to influence the rules to

insure that electricity remains

reliable and affordable, according

to Robert Wyman, an

environmental lawyer with Latham

& Watkins, who coordinates the

coalition.

http://www.ceres.org/bicep

“We’re here to get to yes,” he

says. “We’re not here to fight

about the science.”

The fact that so few companies are

wil l ing to push for coal-plant

regulation frustrates some

environmentalists. The

Environmental Defense Fund

organized a webinar to explain the

importance of the EPA plan to its

corporate partners, says Tom

Murray, who leads the nonprofit’s

corporate partnerships.

“The next step up the corporate

sustainabil ity leadership curve

needs to be aligning what you’re

doing on corporate sustainabil ity

and strategy with policy

advocacy,” he says.

Marc Gunther is editor-at-large

for Guardian Sustainable

Business US and a writer and

speaker on business and

sustainability.

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