To bridge the gap between corporate sustainability commitments and policy engagement, the World Business Council for Sustainable Development (WBCSD) has launched the Positive Policy Engagement (PPE) workstream. Supported by an advisory board, this initiative aims to provide tools and knowledge to ensure that corporate policy and advocacy engagement positively supports climate, nature, and equity goals. This effort includes collaboration with the UN-backed Race to Zero and focuses on transparency, education, and capacity-building. 

Despite numerous corporate sustainability commitments, a significant gap remains between these promises and actual policy engagement by companies. InfluenceMap reveals that 58% of the world’s largest corporations have climate commitments that are undermined by their policy influence strategies, both directly and indirectly through trade associations. This misalignment poses financial and reputational risks and undermines the achievement of companies’ transition plans. 

Investor groups are increasingly demanding consistent advocacy as part of comprehensive transition plans for companies within their portfolios. Initiatives like the investor expectations on corporate climate lobbying statement and demands from sovereign wealth funds underscore the need for companies to align their advocacy efforts with their stated climate positions. S&P Global data reveals that resolutions related to climate change and corporate lobbying are outpacing other shareholder concerns this year. 

Frameworks such as the UN High-Level Expert Group (HLEG) report launched at COP27 and the latest criteria for the UN Race to Zero emphasize the importance of aligning policy engagement with net-zero commitments. The Transition Plan Taskforce also highlights the need for transparency in corporate policy engagement to achieve strategic ambitions. 

Civil society continues to hold companies accountable for aligning their public commitments with their actions, further increasing the pressure for positive policy engagement. Companies recognize the economic benefits of proactive policy engagement, with over half acknowledging that policies can drive demand for low-carbon products and services and enable cost savings through efficiency improvements. 

Sources: 

https://www.wbcsd.org/news/launching-of-the-positive-policy-engagement-advisory-board/ 

https://esgnews.com/wbcsd-launches-positive-policy-engagement-advisory-board/ 

https://solondais.fr/2024/06/18/news131780/wbcsd-establishes-a-positive-policy-engagement-advisory-council/