Mechanisms For Change - Businesses

To-Do Date: May 12 at 9:30am

While some businesses bear the brunt of the responsibility for climate change (Link to 100 companies are responsible for 71% of GHG emissions Links to an external site.), other businesses are realizing their potential to help reduce emissions by increasing demand for renewable energy.  

Below are some examples and optional links to articles with more information:

    • Even in a coal-state like Kentucky, large companies like General Motors, Ford, Walmart, L'Oreal and others need to meet their company-wide goals of reducing emissions.  However, there's not enough renewable energy in the state to meet that demand, so they are working on ramping up renewable energy projects, even through the result is coal becoming a diminishing part of their electrical grid.  Optional Link to Big Business Pushes Coal-Friendly Kentucky to Embrace Renewables. Links to an external site.
    • In 2018, Apple met its goal to power its facilities worldwide with 100% renewable energy.  This involved building new renewable energy projects around the world, including a rooftop solar installation in Cupertino, CA, wind and solar across six provinces in China, a wind project in Oregon, and additional solar projects in Nevada, Japan, Singapore, and more.  Optional Link to Apple now globally powered by 100 percent renewable energy Links to an external site. 
    • In 2020, Toyota Motor Europe announced it reached 100% renewable electricity across all of its European operations and facilities.
    • Other companies that have reached 100% renewable include Estee Lauder, Microsoft, LEGO, and Google.  
    • There are many companies that have set 100% renewable energy targets.  You can find a list at this website Links to an external site..

Is This Greenwashing?

It is undoubtedly good that companies are demanding and helping to bring online more sources of renewable energy.  However, you should take some of these targets and achievements with a grain of salt.  In many cases, the 100% renewable energy may include emissions only within that company's manufacturing, office, or retail locations, but does not include emissions involved in the production of the parts or resources used by that company.  For example, Apple powers its operations with 100% renewable energy, but this does not include its supply chain.  These companies can, however, work to get their suppliers to transition to renewable energy.  As of 2019, 44 of Apple's suppliers have done so.  You can read more about the potential for 100% renewable goals to be used as greenwashing here (Optional Link to What It Really Means When Google and Apple Say They Run on 100% Renewable Energy Links to an external site.)

An example of a company that is looking more deeply at its entire supply chain is Patagonia.  Like other companies, they are working to power their offices, manufacturing, and retail locations with 100% renewable energy, but are also looking at emissions associated with the production of the crops that go into the textiles and foods that they produce and sell, and the emissions associated with waste in their manufacturing process.  If you'd like to read more about their efforts, you can do so at this optional link: How We’re Reducing Our Carbon Footprint Links to an external site..