In Sustainability, there’s always an excuse to do nothing…
Terra Infirma’s most powerful competitor is almost certainly “do nothing”. Given where we work – near the cutting edge, we like to think – we provide our clients with a choice: spend some money and get some great benefits, or, spend nothing and trundle along as usual with your fingers crossed. Unfortunately in these days of economic uncertainty, clinging to business as usual is often more tempting than taking a small risk to make the organisation sustainable in both senses of the word.
So I read with a wry smile that Royal Dutch Shell CEO Ben van Beurden saying that the company wasn’t going to set carbon reduction targets because it could lead to litigation from shareholders. “This is not a practical way to run the company.” he added.
Where to start?
First up: a stretch carbon target sets the direction and ambition of the company. Set a bold target and every stakeholder from NGOs through shareholders to the receptionist at head office knows the company is serious about where it is going and how quickly. In a fossil fuel company, the energy transition is going to require a huge number of people making different decisions to those they would make otherwise. No target = drift at best.
Second: I thought the whole purpose of a publicly trading corporation was to meet the needs of its shareholders, not hide from them?
Third: what better driver for progress than the ‘threat’ that the people who actually own the company will hold the executive to account on the biggest issue of our time?
Sorry, Mr van Beurden, your logic is risible.