
Time to clean up? (Image: Odd Andersen/AFP/Getty Images)
All sorts of companies increasingly make a great play of their green credentials, largely in a bid to attract environmentally friendly consumers. Much is promised, but how much is delivered?
Volkswagen is a case in point. Its , which talked up sustainability and the environment, promised that “acting responsibly has always been part of our corporate culture… Anyone wishing to check whether and to what extent we achieve this should first look at our products.”
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Someone did, and the fine words quickly fell apart.
The scandal that erupted – about how the car maker used software to rig emissions-testing systems across the globe, meaning its vehicles pumped out much more pollution than tests indicated – displays the depths of corporate willingness to cheat. It shows that this is possible even with something that can be measured precisely, such as what comes out of an exhaust pipe.
So what hope for less testable corporate pledges on other issues, such as deforestation, land grabs, health, biodiversity and depletion of water resources (subjects that were on display in force at the in New York in the past week)?
How can we believe the pledges of “” from dozens of big paper and agricultural-commodity companies? Or Coca-Cola’s that by the end of 2015 it will return as much water to the environment and communities as it uses in making its products?
Or household-goods giant Unilever, which says it will ? Or food and drink maker Nestlé, which promises in its supply chain?
Policing the pledges
These may be perfectly sincere pledges, but how can we – or they – ensure they are achieved? In the wake of the Volkswagen scandal, government regulators have taken a hit with the revelation that of unreliable testing regimes for vehicle emissions were ignored for years. The corporate world likes to promote self-policing, sometimes in collaboration with environmental groups. But worries about corporate influence within such set-ups remain.
If governments and self-policing can’t audit the claims, who or what can? In the case of VW, the whistle was finally blown by an . A few businesses are starting to open their doors to similar organisations to vet their green pledges.
Pepsi brought in to audit its promise to eliminate land-grabbing by its sugar suppliers. to track deforestation in areas where the company sources agricultural commodities. And environmental charity The Forest Trust is paid by US commodity giant and Asian agribusiness to help them meet their promises.
We need more of this. It is obvious that when CEOs turn up at places such as the UN’s headquarters in New York to make grand green pledges, or agree to government testing regimes, that is just the start. External independent audits are essential.
At least we now know that the careers of business leaders – as well as the future of the planet – are on the line if green claims turn out to be hollow. More than anything else, that may concentrate minds.
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