The United Nations Framework Convention on Climate Change asserts that greenhouse gas emissions must decline by 45 percent from 2010 levels by 2030 to limit global warming to 1.5 degrees Celsius. If that goal is not met, even more rapid reductions, at greater cost, will be required to compensate for the slow start on the path to global net zero emissions.
Devon Energy Corporation announced a target to achieve net zero greenhouse gas emissions for Scopes 1 and 2 by 2050.2 For the Company to achieve its climate goals, supportive public policy is essential. Therefore, the Company should ensure that all public policy advocacy activities and spending are aligned and coordinated, including support for third party organizations that engage in lobbying. Even with the recent passage of the Inflation Reduction Act, critical gaps remain between Nationally Determined Contributions set by the US government and the actions required to prevent the worst effects of climate change. Domestically and internationally, companies have an important and constructive role to play in enabling policymakers to close these gaps.
Corporate lobbying that is inconsistent with the Paris Agreement and companies’ own net zero targets presents increasingly material risks to companies and their stakeholders, such as damage to infrastructure, impaired access to finance and insurance, and exacerbated health risks and costs. Further, companies face increasing reputational risks from consumers, investors, and other stakeholders if they appear to delay or block effective climate policy.
Of particular concern are trade associations and other politically active organizations that say they speak for business but too often present forceful obstacles to addressing the climate crisis.