Climate Change: Business vs Government
For those of us who use data to make decisions, there’s a clear correlation between global temperatures and the amount of carbon dioxide in the environment. Although this is widely accepted in the scientific and business communities, some in the federal government — and, indeed, our political leadership — simply deny the science.
Since taking office, the Trump administration has gutted much of the progress President Obama made on climate issues. Specifically, the Trump administration has focused on three issues — coal-fired power plants, vehicle emissions, and the Paris Climate Agreement — that represent a large portion of the American climate framework.
It’s hard to imagine how this approach is good for our country. Thankfully, many business leaders are taking a different approach.
GE CEO Jeff Immelt put it succinctly in a memo to his employees:
“We believe climate change is real and the science is well accepted,” Mr. Immelt wrote. “We hope that the United States continues to play a constructive role in furthering solutions to these challenges.”
Exxon — a massive energy company that seemingly has a lot to lose from alternative energy — agrees:
“We welcomed the Paris Agreement when it was announced in December 2015, and again when it came into force in November 2016. We have reiterated our support on several occasions,” Peter Trelenberg, Exxon’s environmental policy and planning manager, wrote to the White House.
Wal-Mart said this recently about climate change:
“This work is embedded in our business,” Wal-Mart spokesman Kevin Gardner said by email. It’s “good for the business, our shareholders and customers; if ultimately we are able to positively impact the environment in the process, that’s a win too.”
Apple, Amazon, Alphabet, and Microsoft — with a combined market cap of $2.2 trillion — released the following statement:
“We believe that strong clean energy and climate policies, like the Clean Power Plan, can make renewable energy supplies more robust and address the serious threat of climate change while also supporting American competitiveness, innovation, and job growth,” the companies said in a joint statement after Trump’s order was signed.
As the Trump administration moves against science, the Chinese government is investing substantially in its climate approach:
- China’s stated goal is to reduce its carbon footprint 45% by 2025
- Last year, China spent more than $100 billion on renewable energy
- Last year, China installed half of the world’s new wind power
Because we like visuals, here’s a good one to see how Chinese investing trends.
