Yvon Chouinard and his family have donated ownership of the outdoor goods company to a trust, … [+]
All the political shilly-shallying about who — if anybody — would be representing the U.K. at the COP27 climate summit that begins in Egypt this weekend is somewhat disappointing. Not least because COP26 was held in Glasgow only 12 months ago and was regarded as something of a success. That newly-selected prime minister Rishi Sunak has now found the time in his diary to attend is, of course, a step in the right direction, but the manner of his decision unfortunately speaks volumes for the way in which politicians — as they tend to with all tricky issues — put off doing anything concrete about climate change in favour of dealing with more urgent issues. Admittedly, the challenges facing Sunak are pretty tough. But even these could be said to pale beside climate change.
It is noteworthy that Earthday.org, the organization that grew out of the first events designed to demonstrate the importance of protecting the environment back in 1970, last month announced that next year’s Earth Day will for the first time since the movement started carry on with this year’s theme — Invest in Our Planet. Kathleen Rogers, president of Earthday.org, said in a statement: “In 2023 we must come together again in partnership for the planet. Businesses, governments, and civil society are equally responsible for taking action against the climate crisis and lighting the spark to accelerate change towards a green, prosperous, and equitable future. We must join together in our fight for the green revolution, and for the health of future generations. The time is now to Invest In Our Planet.”
Fortunately, some in business — though clearly not enough — are prepared to take a longer-term view than the politicians. The recent announcement by Yvon Chouinard that he and his family were giving away Patagonia, the company he founded, so that all its future profits could be used to fight climate change and protect undeveloped land around the world is clearly an extreme example. It is in keeping with the maverick approach of Chouinard, who always characterized himself as a reluctant businessman. Interviewed at the time of the move, Chouinard expressed the hope that it might “influence a new form of capitalism.” But in truth, he and his colleagues have already encouraged many other businesses to take the environment seriously.
Twenty years ago, Chouinard and fellow outdoorsman Craig Mathews of Blue-Ribbon Flies launched 1% for the Planet to encourage businesses to donate at least that proportion of their revenues to support activities protecting the environment. What started as an initiative among a few like-minded outdoors businesses has since grown into a substantial organization with 5,500 business members covering about 65 different sectors. More than half of the members are now based outside the U.S., up from 20% in 2015. In the two decades since the start, it has overseen $435 million in support for approved environmental projects.
CEO Kate Williams explained in an interview that a key part of the organization’s activities was certification. It does not directly give funds to programs. Instead, it encourages businesses to forge links with appropriate recipients for the funds and ensures that the businesses genuinely meet the 1% commitment and checks that the projects do what they say they are doing. In this way, it says it is helping to counter “green washing,” where businesses claim to be doing more than they actually are.
But Williams also believes that the policy of encouraging companies to give the funds in the countries in which they operate promotes greater engagement with the environmental groups through enabling employees to become involved. She hopes that the success of the organization — increasing numbers of service businesses as well as manufacturers and retailers proudly display the 1% logo on their websites — will encourage greater philanthropy in this sector. She points out that there is comparatively little philanthropical giving to environmental causes, even though research reveals a real need.
As with so many issues these days, business seems to be ahead of the politicians when it comes to climate change. It is said that one of the problems with today’s politics is that the parties put polling ahead of principle. This may explain some policies, but when it comes to the environment the public seems rather more concerned than the politicians believe. Hence the furore when the hapless Liz Truss announced a relaxation of the ban on fracking for shale gas, yet another policy that was reversed by her successor. But businesses — even those heavily involved in fossil fuels — know how their customers feel. Not all their claims about their activities bear close scrutiny, but the reason they make them is that they know the public expects it of them. Which is more than can be said for many politicians.
