Navigating the net-zero thicket

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Apr 15, 2022 View in browser   By Debra Kahn and Jordan Wolman Presented by THE WEEK THAT WAS Carbon offsets could be missing the forest for the trees. | (Charles Krupa/AP Photo) TOUGH CUSTOMERS — Companies want to know what the media thinks of them. We were at a Salesforce Inc. conference earlier this week where we were quizzed on our approaches to evaluating corporate net-zero plans. Honestly? All of us reporters agreed on some basic red flags: Not having any targets before 2050; relying exclusively on offsets; whether the chief sustainability officer reports to some less-essential executive than the CEO. But it's just not sustainable to spend too much time directly navigating this increasingly crowded space. This week alone, Google put out a 35-page "policy roadmap" intended to reduce electricity emissions. Stripe Inc., Google parent Alphabet Inc. and Meta Platforms Inc. announced a $1 billion fund for buying carbon-removal offsets. And Salesforce said it would come up with "blue carbon market principles" for counting emissions saved by preserving ocean ecosystems. Sounds...okay? There are people who spend most of their time on this stuff — and that's who we ask when we're trying to make sense of this absolute thicket of commitments, pledges and targets. Stripe's project could be viewed as a distraction from cutting businesses' actual emissions. But it's an essential piece of the puzzle, says Danny Cullenward, policy director of CarbonPlan, which evaluates carbon plans, like the name says. (Carbon Plan's executive director is an adviser to Stripe's project.) If we're actually going to reach net zero emissions, some of them will have to be removed from the air. You can't get there by exclusively paying others not to emit in order to keep emitting yourself. "The circle's got to close at some point," he said. "That's one of the awkward features of this whole system." One of the main objections to focusing too much on corporate plans is that we're missing the forest for the trees. These commitments are mostly taking place in a policy vacuum (that corporate trade groups have helped create). But they could help policy catch up. California state Sen. Josh Becker (D-San Mateo) introduced a bill in February that would require electricity suppliers to report more granular data on the greenhouse gas emissions associated with their power. That would help meet the state's climate goals — and align the sector with Google's targets at the same time. "Proving it can be done makes it much easier for the next person to come along and say, 'Hey, we can do this thing, too,'" Cullenward said. SHAREHOLDER SCOREBOARD New York Comptroller Tom DiNapoli is stirring the pot among bank shareholders. | (Seth Wenig/AP Photo) Companies are also sensitive to customer criticism. Banks are resisting shareholder proposals to limit their financing of new fossil fuel projects, as Jordan reported earlier this week. The chorus is getting louder: New York State Comptroller Tom DiNapoli, who oversees New York State's $279 billion pension fund, filed solicitations this week urging shareholders of Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co. to back resolutions calling on the companies to adopt climate resolutions to meet net-zero goals by 2050. And environmental activists are rounding up rank-and-file credit-card customers and checking account owners to chime in. More than 10,000 people signed letters this week to BlackRock Inc., Vanguard Group Inc. and other big asset managers who hold shares in Wells Fargo, Citigroup, JPMorgan and Bank of America, urging them to vote their shares in favor of proposals that would require the banks to report the greenhouse gas footprint of their lending activities. That push comes on the heels of letters from more than 38,000 customers of those same banks, urging executives to end lending, underwriting and insurance on fossil fuel operations.   A message from The American Beverage Association: At America's beverage companies our plastic bottles are made to be remade. We're carefully designing them to be 100% recyclable, including the caps—so every bottle can become a new one. That means less plastic waste in our environment. Please help us get Every Bottle Back. EveryBottleBack.org   AROUND THE NATION ADD 'EM UP – Chalk this one up as another win for the energy boycott boycotters. Kentucky is making a list of companies it says are refusing to deal with the fossil fuel industry – and banning state entities from entering into contracts with them. Senate Bill 205 was signed by Democratic Gov. Andy Beshear earlier this week after easily clearing the Legislature. Sound familiar? It should. West Virginia just passed a nearly identical bill last month. That state's Republican treasurer, Riley Moore, is leading the crusade against divestment from the fossil fuel sector, both in public pension funds and banks' financing. Kentucky Treasurer Allison Ball is part of Moore's 15-state coalition organizing to punish companies accused of impairing fossil fuel firms' access to capital.   A message from The American Beverage Association:   YOU TELL US GAME ON – Got any tips for evaluating corporate sustainability plans? Any efforts you consider particularly skimpy? Let us know. And happy Friday! Welcome to the Long Game, where we're delivering the latest on efforts to shape our future. Tuesday through Friday, we've got data-driven storytelling, compelling interviews with industry and political leaders, and more news to keep you in the loop on sustainability. Our team is sustainability editor Greg Mott, deputy editor Debra Kahn, reporters Lorraine Woellert and Catherine Boudreau and digital producer Jordan Wolman. Reach them at gmott@politico.com, dkahn@politico.com, lwoellert@politico.com, cboudreau@politico.com and jwolman@politico.com. Want more? Sign up for the Long Game. Four days a week and still totally free!   INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED:  Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today.     WHAT WE'RE CLICKING — White House climate adviser Gina McCarthy might be eyeing the exits with much of Biden's climate agenda left undone. Also "incomplete": Biden's environmental justice agenda. — California's grid ran on 97 percent renewable energy for a minute earlier this month. — A Los Angeles water official is coming under scrutiny for waiving fines for Boeing's involvement in a 2018 wildfire after receiving $70,000 in donations from the aerospace giant. — Check out this real-life "Don't Look Up" moment on British TV. — Fishing industry concerns about Rhode Island's offshore wind farm are unfounded, a wind industry-funded seven-year study of the area says.   STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.     LOOK AHEAD April 18 — The Brookings Institution holds a virtual discussion, "What Comes After the Intergovernmental Panel on Climate Change's Sixth Assessment Report?" 3:30 p.m. April 19 – The Urban Institute holds a virtual discussion, "Building Rural and Native Communities' Resilience to Disasters." 2:30 p.m. April 20 – John Kerry, the State Department's special presidential envoy for climate, speaks at a Center for Global Development virtual forum on "Financing Green Development." 9:30 a.m. April 20 – The International Dairy Foods Association discusses ways to minimize packaging waste and improve recycling. 1 p.m. April 20 – The Environmental Protection Agency holds a teleconference meeting of the National Environmental Justice Advisory Council, at 1 p.m., with another session April 21, also at 1 p.m. April 21 – World Bank President David Malpass participates in a discussion on "Transitioning Economies, Transforming Climate: Financing Climate Action for a Green and Inclusive Future" during the International Monetary Fund/World Bank Group Spring Meeting. 11 a.m. April 22 – The Middle East Institute holds a virtual discussion, "Innovations in Climate Resilience: Restoring the World's Mangrove Forests." 11 a.m. Events are listed in Eastern Time   A message from The American Beverage Association: America's leading beverage companies - The Coca-Cola Company, Keurig Dr Pepper and PepsiCo - are working together to reduce our industry's plastic footprint through our Every Bottle Back initiative. We're investing in efforts to get our bottles back so we can remake them into new bottles and use less new plastic. Together, we're: · Designing 100% recyclable plastic bottles – we're making our bottles from PET that's strong, lightweight and easy to recycle. · Investing in community recycling – we're marshalling the equivalent of nearly a half-billion dollars with The Recycling Partnership and Closed Loop Partners to support community recycling programs across multiple states. · Raising awareness – we're adding on-pack reminders to encourage consumers to recycle our plastic bottles and caps. Our bottles are made to be remade. Please help us get Every Bottle Back. EveryBottleBack.org     Follow us on Twitter Catherine Boudreau @ceboudreau Debra Kahn @debra_kahn Greg Mott @gwmott Lorraine Woellert @Woellert Jordan Wolman @jordanwolman   Follow us

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