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Paris Withdrawal Won’t Stop Business Sustainability

June 27th, 2017

In the wake of the United States leaving the Paris Climate Agreements, many states, cities, and individual companies have taken pledges to continue sustainability efforts. In Minnesota, we’re lucky to have major companies and thought leaders stand firm in their commitment to environmental protection, including many members of the Minnesota Sustainable Growth Coalition.

In an effort to work toward a circular economy, environmental protection and stewardship must be a high priority. Several Coalition members have issued public statements and/or been in public support of the Paris Climate Agreements, demonstrating the leadership in our community on environmental issues.

The fact is, a commitment to the Paris Agreements, and more broadly our environment, is a smart business decision no matter your priorities.

STAYING GLOBALLY COMPETITIVE

One of the main reasons that companies and government entities are still following through with climate promises is to stay competitive. Cargill issued a statement reflecting their need to remain globally competitive, concluding that the Paris accords impact “trade, economic vitality, the state of our environment, and relationships amongst the world community.” Because of this, CEO David MacLennan said Cargill will not back away from efforts
to reduce climate change.

General Mills and several leading companies (Google, Walmart, Unilever, and more) echoed that sentiment with a letter to the President to express why the Paris Climate Agreements are important to their ability to compete globally: “the agreement ensures a more balanced global effort, reducing the risk of competitive imbalances for U.S. companies.”

INNOVATION & OPEN MARKETS

Part of being globally competitive is practicing innovation. The Paris Climate Agreements helped companies to innovate and create technologies that lower business costs. That new technology allows companies to enter new markets and keep markets open. Dow commented on how they will act in light of the executive decision, saying they will “continue to advocate for smart policies that enable the reduction of global greenhouse gas emissions and ensure that global markets stay open to American exports and innovation.”

Thomson Reuters also commented on the importance of climate innovation: “In short, having a sustainability strategy integrated into your business model is an efficiency, growth and innovation driver.”

COMMITTING TO CUSTOMERS

In addition to economic arguments, Xcel Energy made a more values-driven appeal. In an op-ed, Xcel’s CEO calls out the value of their customers, and responding to their interests in achieving a higher standard of environmental protection. As a result, Xcel is already on a “path to reduce carbon emissions by 45%
by 2021, well ahead of the U.S.-Paris commitment.”

Best Buy also highlighted what they’re doing in response to customer interests, saying, “Best Buy is focused on reducing our own carbon impact, and helping our customers use less energy as well… Collective action will result in a healthier world for generations to come.”

THE BOTTOM LINE

In the end, Minnesota businesses and corporations are dedicated to the environment for more than just regulatory reasons. Investing in environmental protection is a smart business decision. Even more than that, private-sector leaders see lessened environmental protections as harmful to their organizations and global markets as a whole.

These businesses, our state, and many others are still committed to action on the environment. It’s because of that leadership that we can still look forward to climate action for years to come.

Sam Hanson

POSTED BY:

Director, Sustainability Program
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