Corporate Sustainability in America Today
Many American companies are deeply divided on sustainability today. While some manufacturers across industries are rapidly moving away from sustainability commitments made in recent years, others remain dedicated to their sustainability initiatives.
Those companies maintaining their commitment view sustainability as an opportunity to reduce costs, improve efficiencies, grow, and foster innovation. Additionally, many are continuing to expand their environmental programs despite the broader pullback.
Other organizations, however, are still struggling with this decision. They're carefully evaluating whether to continue, expand, or discontinue their sustainability efforts, which may take some time to resolve.
As someone who has been helping organizations adopt Green Cleaning and sustainability practices for more than two decades, I've observed firsthand that organizational changes, particularly in large organizations, can move very slowly.
These businesses are naturally resistant to dramatic changes in direction. Just as they carefully deliberated before adopting Green Cleaning and sustainability practices years ago, they're likely to take an equally measured approach when considering any changes to these programs.
This methodical decision-making process suggests that many companies will thoroughly evaluate the situation first, before making any changes to their sustainability commitments. And many experts in different industry sectors are telling me that, at least got the near future, they will not make any long-term changes to their sustainability plans.
Instead, they will be adhering to sustainability because they have already witnessed its benefits, see it as helping them be more economically resistant, and helping them secure their position in a global economy.
Further, "while net zero goals are now less fashionable in this country [than they were just a few months ago] that does not mean manufacturers will or should consider changing course regarding their sustainability objectives," says Columbia University Sabin Center for Climate Change Law Founder and Professor Michael Gerrard.
"It can take a long time to go through the administrative process, and after that's done, [these changes] can be challenged in court. By the time all that is resolved, there could be a new president who could reverse course once again," says Gerrard.
Further, he adds that even if federal-level regulations are weakened, manufacturers will still need to adhere to state-level rules as well as European rules and regulations. These European rules and regulations, particularly those related to climate disclosure, have a global reach and can influence the sustainability practices of American companies, notably those with international operations.
"Large companies must now comply with climate disclosure regulations in Europe, California, or both regions," Gerrard explains. "These laws require companies to track all emissions in their value chain - from their suppliers' operations to their customers' use of products." *
For U.S. manufacturers, the key driver of long-term sustainability changes won't be federal policy shifts. Rather, market forces and economic conditions will have a greater influence on their sustainability decisions than government regulations.
This suggests that even if some environmental policies are rolled back, economic factors will continue pushing companies toward sustainable practices.
-Steve
*This is referred to as Scope 3. It refers to emissions are not the result of activities by a single, large organization, but all the organizations they do business with.