Why Are Companies Quietly Exiting Climate Initiatives? Uncovering the Silent Retreat from Environmental Responsibility

Several companies in New Zealand are stepping away from their climate goals without a word. An expert in sustainable business, Associate Professor Pii-Tuulia Nikula, has raised concerns about this trend.

Last year, Air New Zealand made headlines when it announced it would not hit its climate target set for 2030. This goal was part of the Science Based Targets Initiative (SBTI), a respected global group that helps companies align their targets with climate goals.

Nikula pointed out that many companies are dropping out quietly. Some committed to the SBTI but failed to meet their targets. “There are businesses in New Zealand whose commitments have expired. They made promises but didn’t set real targets within the deadline,” she explained.

Some companies initially set goals when joining but left later because they found it challenging to meet them. Despite criticism for being too easy on companies, SBTI is still viewed as a trusted standard due to its independence and global reach.

SBTI began removing companies that didn’t meet their commitments in 2023. Their new requirements now include managing emissions from supply chains, not just direct emissions. This new standard caught several companies off guard.

RNZ contacted three companies that have either withdrawn from SBTI or had their commitments removed. None were willing to speak on the record but provided statements. Kiwi Property Group mentioned it only considered setting targets but never followed through.

Silver Fern Farms stated that it is still committed but is awaiting approval for its targets related to sheep and beef farming. Their goals include cutting emissions from beef by 24% by 2033 and reducing overall sheep emissions by 10% in the same timeframe.

Auckland Airport, once a pioneer in setting targets under SBTI, withdrew after meeting its initial goal in 2020. They stated the criteria changed to include supply chain emissions, which includes significant emissions from aircraft fuel. The airport emphasized that they continue to pursue decarbonization efforts, despite not seeking verification from SBTI.

Nikula believes that setting ambitious targets can be a double-edged sword. Companies need transparency and accountability, but if targets are too daunting, some might choose to withdraw rather than risk failing in public.

While SBTI has faced criticism for allowing carbon offsets instead of strictly enforcing genuine emissions reductions, it’s still seen as a crucial resource. Companies like 2 Degrees are actively working with SBTI to set and verify their targets. They plan to reduce emissions through energy-efficient practices, such as putting cellphone towers into “microsleeps” to save power.

2 Degrees aims to cut emissions by 90% by 2030, including their supply chain by 2040. The company’s CEO, Mark Callander, believes they can achieve these goals and has support from both shareholders and employees.