The Role of Corporate Responsibility in Combating Climate Change

By: Katie Brenneman

Data released by Statsitique Canada shows that 9 of the warmest 10 years have occurred in the last 25 years and that 2023 was the second-warmest year on record. Temperatures in Canada have increased at twice the rate of global temperatures, causing extreme heat, less extreme cold, thinning glaciers, and a rising sea level. 

While more intergovernmental action is required to curb climate change, the corporate sector can do its part by embracing Corporate Social Responsibility (CSR) models that reduce emissions, protect vulnerable ecosystems, and champion community efforts to improve the local environment. 

Adopting a CSR model isn’t just good for the world — it’s good for business, too. Many consumers want to support eco-friendly brands and will pivot toward competitors if corporations fail to take their commitment to climate change seriously. Firms that wish to appeal to climate-conscious consumers must take proactive steps to curb emissions and reduce environmental degradation. 

Quantifying Impact

Before a business can begin a CSR program, it must take steps to assess and quantify its impact. Accurate assessments are crucial, as failing to track key data points such as carbon emissions, waste production, or water use can accidentally lead to greenwashing. Corporate greenwashing occurs when a brand exaggerates the changes they’ve made or obscures their true impact. 

By investing in a CSR program, firms can quantify their impact and start setting goals to reduce emissions and reduce harm. Some corporations even use internal calculations to price their carbon use. Carbon pricing can be used to reduce emissions and pivot towards buying more renewable energy. Doing so can convince eco-friendly shareholders to invest and will build a more resilient business model in the long run. 

Quantifying the impact of the firm can aid efforts to invest in CSR, too. Put, decision-makers are far more likely to take sustainability seriously when they know the emissions, waste, and water a firm uses. 

Sustainable Energy 

Adopting sustainable energy is a challenge that faces every organization across the globe. Pivoting to sources like renewable energy and biofuels should be a top priority for firms that care about limiting their emissions, as recent data from NASA Earth Observatory shows that emissions continue to rise year-on-year. 

Firms who want to push the boundaries of sustainability should consider opting for biofuels. Biofuels have lower emissions than traditional gas and can be produced using the waste of plants and oils. Biofuels naturally lubricate engines, too, meaning cars and trucks last longer. Currently, however, biofuels are too expensive to be profitable without subsidies, though this may change as adoption increases. 

Companies that want to adopt sustainable energy as part of the CSR can make the switch by partnering with utility providers that commit to net-zero and installing solar panels and heat pumps of their own. The Canadian government currently offers retrofit grants that can help fund solar installation. Firms that switch to solar can take control of their energy production and increase their resiliency in the face of the rising costs of oil, coal, and natural gas. 

Reducing Waste

Cutting down emissions is only one part of an effective CSR model. Firms that want to reduce their environmental impact must effectively measure, track, and mitigate waste production. This is key, as environmental issues like the Great Pacific Garbage Patch and the Apex Landfill resemble serious ecological issues. 

Firms with high product turnover can reduce the environmental impact of their waste by creating a demand plan that uses historical data to ensure that companies don’t over-order perishable stock. Doing so ensures companies can create an accurate turnover ratio and begin planning for excess before it becomes waste. This may mean firms explore options such as: 

• Recycling and repurposing excess stock;
• Creating consignment deals;
• Regularly clean and upgrade storage areas to reduce the risk of damage/spoiling of stock.

Businesses that want to reduce waste can also complete a waste audit in the CSR. An audit gives decision-makers a clear direction to follow, as leaders can pivot towards using recyclable packaging or different suppliers if they discover their packaging isn’t biodegradable or their upstream waste is undermining their broader CSR goals. 

Companies with a commitment to combating climate change can partner with community-based organizations to reduce waste in the area, too. For example, businesses that connect with charitable, eco-friendly organizations can fund community clean-ups or purchase sponsored recycling stations and bottle banks. This boosts the firm’s brand presence and can aid its efforts to create a greener local environment. 

Conclusion 

Businesses that champion CSR can play their part in helping save the world from climate change. Even simple changes to CSR policies — like creating consignment deals for old inventory — can reduce waste and support sustainability efforts. Businesses that want to make a strong CSR program can start by tracking emissions, waste, and water use. This gives the firm a clear sense of direction and will improve trust amongst climate-conscious consumers.  

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Katie Brenneman is a passionate writer specializing in business management, tech innovations, education, and sustainability-related content.