One response to today’s climate crisis has been a belief that markets and corporate innovation will provide the solution. As business tycoon Richard Branson has proclaimed in 2012, “our only option to stop climate change is for industry to make money from it.” So while businesses are major contributors to escalating greenhouse gas emissions, they are also presented as offering innovative ways to decarbonize our economies. But how much faith can we place in business to save us from climate change?
How Bold Corporate Climate Change Goals Deteriorate Over Time
An analysis of five major Australian corporations over a 10-year period.
November 22, 2017
Summary.
For years, many people have argued that the free market will be sufficient to address the climate crisis. But is that the case? In a study of five Australian companies over a 10-year period, researchers found that initial bold statements about a commitment to addressing climate change often deteriorate over time, acquiescing to shareholder demands. This process follows three stages: framing, localizing, and normalizing. In the end, the authors argue that relying solely on a market response to the climate crisis might be misguided; instead, increased regulation and a shift in thinking about shareholder primacy may also be necessary.