Climate change stands as one of the most significant challenges our world is facing today. Recognizing the severity of climate change, various efforts are being made globally by businesses to respond to this crisis. According to the 2022 carbon emission statistics compiled by the International Energy Agency, major corporations are increasingly striving to reduce their carbon emissions. However, there are still numerous challenges in responding to climate change and reducing carbon emissions. This article aims to examine the efforts made by corporations as well as the challenges they face in this regard.
￭ Corporations Actively Striving for Carbon Emissions Reduction, Water Conservation, and Forest Protection to Address Climate Change
According to statistics from the Global Carbon Project, some companies are adopting innovative methods to reduce carbon emissions. The German food and chemical company Symrise received the highest rating, 'Triple-A,' from the Carbon Disclosure Project (CDP) in 2022 for its dedication to climate, water, and forest conservation. In terms of carbon emission reduction, Symrise has been using renewable energy globally since 2020 to meet all its power demands, conserving water, and making efforts to sustain it as a resource. Symrise aims to improve water efficiency by 15% compared to 2018 at all of its production sites at high risk of water scarcity by 2025. Additionally, they are expanding sustainable and resilient cultivation of Indonesian patchouli oil, ensuring fair income for local farmers and dedicating efforts to conserve and replant trees.
Another company that received the 'Triple A' rating from the CDP is the French cosmetics manufacturer L'Oréal. In terms of carbon emission reduction, L'Oréal has reduced the carbon footprint of all its factories by 87% since 2005 by developing sustainable products and eco-friendly production methods. Furthermore, L'Oréal states that 94% of the raw materials used in its products are traceable and come from sustainable sources. "In terms of forest conservation, companies [including L'Oréal] are adhering to their own '2030 FOREST POLICY,' actively leading in mangrove forest restoration, and contributing to the preservation of forest diversity. They are also purchasing sustainable palm oil, furthering their commitment to forest conservation efforts." Additionally, L'Oréal reduced water consumption at its factories and distribution centers by 53% from 2005 to 2022 (calculated per liter of finished product).
However, as seen in the statistics from the Carbon Disclosure Project, companies that have realized all the methods for carbon emission reduction and water resource conservation mentioned earlier are not plentiful.
￭ Divergent Views on Corporate Responses to Climate Change
Regarding corporate responses to climate change, public opinions vary. Some argue, as seen in the cases of these companies, that businesses are actively responding to climate change and reducing carbon emissions by utilizing renewable energy sources such as wind, solar, and hydropower to generate electricity. They also engage in initiatives like plant-based agriculture, forest management, and renewable energy projects to offset their remaining emissions. Moreover, these companies are taking proactive measures to address climate change on their own initiative, attracting investments and high-level talent to their organizations by actively responding to climate change and reducing their carbon footprints.
However, others criticize many companies for not yet implementing all of the methods for carbon emission reduction and water resource conservation discussed earlier, asserting that corporate responses to climate change are insufficient. "As evident from the statistics of the Carbon Disclosure Project, out of 349 companies, only 13 have received a 'Triple A' rating for their efforts to reduce carbon emissions, improve water conservation, and protect forests."
International crises such as the COVID-19 pandemic and the Russia-Ukraine war are limiting the investment and research & development necessary to achieve carbon neutrality. Karen Pittel, head of the Energy, Climate, and Resources Center at the German economic research institute IFO, stated, “Recently the coronavirus crisis and the war in Russia-Ukraine has put a dampener on all kinds of investment and that also concerns climate protection investment. But on the other hand, there are some more underlying issues. For example, companies still fear that if they increase their costs by investing in climate protection, they might not be internationally competitive anymore." Moreover, supply chain instability and the protectionist policies of some nations are restricting the exchange of technology and resources for companies to foster technological innovation and strengthen climate action. As the impacts of climate change and international politics disrupt the sustainability and stability of global supply chains, a vicious cycle has formed. As climate change deteriorates, the supply chain is becoming more vulnerable, making it even more difficult for companies to implement climate action, thereby causing further instability in global supply chains.
Corporations are still struggling to find a balance between economic interests and environmental conservation. Despite these challenges, companies are striving to find ways to consider both economic gains and environmental preservation for sustainable growth in the future. This indicates the need for greater efforts and responses from corporations on climate action, as climate change is already manifesting in observable ways.