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The vast majority of Americans support both corporate transparency on climate as well as federal requirements for corporations to disclose their climate data, from emissions to emission reductions to sustainability programs and climate commitments. But although many corporations are improving on their climate commitments, some sectors are still woefully behind, according to a new report from Just Capital, which tracks companies in the Russell 1000. The number of corporations pledging to emit net zero emissions by 2050 will more than double from this year to next year, from 102 to 238. On the most ambitious commitment, a verified SBTi 1.5-degree scenario, 83 companies will become verified, a 21% increase year over year. While net zero targets generally have a year as the finish line, they don't commit to a particular degree reduction of global warming.
Sustainability leaders from Walmart, JUST Capital, Dow, Honeywell, Cognizant, Deloitte, Bank of America, AB InBev, and Carlyle participated. If you're just looking for a science partner, you're going to go and get the science. So then we started building debriefs for our portfolio companies, actually making them sit down and have a conversation with us. Because as long as you do it with integrity, you're going to probably get to the right place. I remember him saying when we talked about the idea, "what you're trying to achieve with that, is somewhere between really, really, really, really hard and impossible."
Gary Gensler, the chair of the SEC, told Insider the proposed plan is to make environmental, social, and governance, or ESG, reporting more formalized. The most popular is TCFD, a set of letters you should get used to if you're interested in climate policy. The task force developed its own set of international recommendations for climate reporting, with "core recommendations" centered around governance, strategy, risk management, and metrics and targets. How synced should ESG reporting be with preexisting quarterly and annual reports? "We believe ESG reporting will mature far more quickly but needs to follow a similar path."
But there's a difference between increasing pay and giving workers a living wage. Recent polling shows that 85% of Americans want companies to invest in their workers. And while many companies have been doing so by increasing starting pay and adding new benefits, now it's time to tackle paying a living wage. Paying a living wage is a key part of the equation. This is just one example of workers' financial security needs helping to drive corporate action (PayPal is probably the most well known).
The event, in partnership with Bank of America, took place Tuesday, May 10. Martin Whittaker, chief executive officer of the nonprofit JUST Capital, said there is now a greater focus on worker well-being than ever. For Karen Fang, the managing director and global head of sustainable finance at Bank of America, prosperity includes access to basics like financial services and digital inclusion. "The definition of prosperity has gone from economic prosperity to social prosperity," Fang said. She said the bank has hired 10,000 workers from these areas, a goal it achieved two years early.
We live in a time of urgency for businesses to embrace long-term, sustainable value. On May 10, 2022, Insider is hosting "Financing a Sustainable Future - Creating Broad-based Economic Prosperity," a free virtual event at noon ET, featuring speakers from Bank of America, JUST Capital, Dow, and more. Click here to register for this free virtual event. We live in a time of urgency for businesses to embrace long-term, sustainable value creation and prioritize the needs of people, the planet, and the creation of broad-based economic prosperity. The event will take a closer look at the third of the four pillars of ESG reporting, as defined by the World Economy Forum: Prosperity.
Only 18 companies disclosed all nine of the practices taken into consideration, including Goldman Sachs, Nike, Nvidia, and PepsiCo. Just's team of researchers gathered all public data on nine criteria related to what it calls "human capital." The team discovered that only 18 of the companies both disclosed and tracked the progress of all the criteria. It was initially acceptable to simply state a policy, but then stakeholders demanded increasingly extensive data and signs of progress. "I don't think that you have much of a choice these days, if you're a larger company," she said.
Persons: Paul Tudor Jones, Russell, Goldman Sachs, It's, Martin Whittaker, you've, it's, Whittaker, Alison, millennials, Eli Lilly, Jones Lang LaSalle, Read, Tonie Hansen, Hansen Organizations: Nike, Nvidia, PepsiCo, Service, ROE, Data Systems, Boston Scientific, Hasbro, Intel, PayPal, Qualcomm, State, Symantec, Texas Instruments Locations: BusinessInsider.com, Wall, Silicon, America, Marriott, Wells
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