Capping about climate commitments: Do businesses really mean it?

Friction and distrust have been brewing between employees and organisations when it comes to the grandiose climate commitments that a number of businesses are verbally aligning with.

Greenwashing has sadly become a repetitive strategy done by a number of businesses and corporations to seemingly cash in on the environmental discourse that is running rampant globally.

By definition, greenwashing “refers to claims made by a company that are environmentally friendly, sustainable or ethical, when it is not”. It is a form of misleading or deceptive conduct. Consumers, investors, and employees themselves need to be able to rely on the claims made to them about the environmental commitments that their organisation has.

Environmental promises from organisations and corporations are the trend because of the benefits it can offer in regards to company image. Employees themselves often embolden their organisations to enact some form of a climate commitment because they themselves are passionate about the issue. Therefore, making those promises can directly feed into employee value proposition (EVP), which can boost productivity and business outcomes.

KPMG, for example, makes the connection between retention and green initiatives: “At a time when skilled talent is absolutely scarce, an ESG-focused (environmental, social, governance) mission and value statement, backed with green incentives and initiatives, can be key retention and attraction levers.”

The issue arises when organisations seemingly pledge their commitment to environmental values, then don’t follow through on them. This farce breeds disdain from consumers, stakeholders, and most importantly, employees.

Employees are the key contributor to organisational success. If they feel betrayed, misled, or deceived by their corporate higher-ups, especially towards such a passion-filled topic like the environment, then their performance and productivity could decline dramatically.

This is the consensus in the climate commitment space. NewClimate Institute and Carbon Market Watch looked at the climate pledges of 51 multinational firms and found many brands were inflating their sustainability claims.

The collective ambitions of the organisations, such as the lofty 2030 climate pledges, have gradually improved over the past two years. However, “most companies continue to fall far short of the economy-wide emission reductions required”, the report said. In fact, the report labelled their attempts as “critically inefficient”.

People are beginning to wake up and realise the disingenuous pandering that a number of organisations are doing when they announce their climate commitments.

According to an employee engagement study by Cone Communications, 51 per cent of employees stated that they would not work for a company that doesn’t have strong policies addressing environmental sustainability issues, with 70 per cent stating they would be more loyal to a company that makes contributions to these issues.

If businesses are going to commit to environmental promises or something along those lines, it’s imperative that they back it up. Productivity, team culture, and retention will be on thin ice if organisations attempt to deceive their employees regarding this topic.

Therefore, directly involving employees in the organisation’s climate commitments creates participation and accountability.

Fresia Jackson, lead researcher at Culture Amp, stated: “Employees are wise to the fact that companies tend to make promises they don’t keep. So how those targets are set, communicated, and acted upon is paramount for creating a demonstrable impact on employee commitment and motivation.”

Having employees and leaders collaborate on organisational strategies for environmental commitments promises three things:

1. Retention, team culture, and loyalty to the organisation will not decline because employees are directly involved in the process and can hold leaders and themselves accountable if climate targets aren’t met. Meaning no deception is at play here.
2. Business outcomes and productivity will not dip. Instead, because the organisation is supporting a cause that many are passionate about, it would not be a shock to see productivity rise because of the improvement in workplace culture.
3. Because that passion towards this topic resides within many employees, they would be extremely determined to ensure that these goals and commitments were achieved. Giving leaders a strong driving force towards their climate goals.

Rather than using climate issues as a farce in an attempt to appease consumers, stakeholders, and employees, organisations should have a collective mindset and involve their staff in the process. The workplace benefits of this mindset could prove to be significant.