The Greenest Company Has the Best Marketing Department

While browsing various development companies’ websites for a task, we noticed a common trend: nearly all of them have a sustainability tab. Not long ago, websites typically featured an "About Us" section where companies stated their mission and vision, sometimes mentioning their commitments to sustainability, although this wasn't very common. Now, it seems marketing departments are working hard to present organizations as environmentally friendly as possible. We emphasize marketing departments instead of environmental departments because there are often contradictions between what companies claim and what they actually do.

Sincerity in sustainability

Let’s examine these companies' sincerity when adding a sustainability tab to their websites. We'll start with something everyone in Canada can observe: the culture of printed letters- This example will illustrate the difficulty of managing and tracking everything outside of our homes so we need 3rd party organizations and governments to monitor them, then investigate the major banks in Canada using data and statements available on their official websites and social media channels. Before that, here is the question:

Why Does This Matter?

Because we are so close to the point of no return. The last exit before the bridge is approaching. The United Nations Intergovernmental Panel on Climate Change has made clear that large-scale carbon dioxide removal will be needed this century to hold temperatures to a 1.5 degrees Celsius increase — the goal set out in the Paris Agreement. To ultimately re-cool the planet, carbon dioxide removal is essential to eliminate the legacy carbon dioxide pollution that would otherwise remain in the atmosphere for hundreds or thousands of years (King & Semesi, 2023).

The U.N. science report approved in March 2023 concluded that to stay under the warming limit set in Paris, the world needs to cut 60% of its greenhouse gas emissions by 2035. Otherwise, we are at the point of no return (Borenstein & Jordans, 2023). Therefore, the banking industry must act urgently.

Greenhouse gas emissions can be likened to an overflowing bathtub. If we don't take action to slow the inflow (by reducing GHG emissions entering the atmosphere) and decrease the outflow (by reducing GHG emissions already in the atmosphere), we risk reaching a critical point of overflow. This analogy serves as a crucial guide for climate actions, emphasizing the urgent need to address both the sources and existing levels of greenhouse gases.

Marketing vs. Environmental Departments

This isn't investigative journalism but rather citizen journalism. We don't aim to offend banks, which are crucial organizations. The billions they claim to invest in greener options might actually be funneled into their marketing departments to better promote their environmental friendliness, sustainability, or even carbon neutrality. We mention all these terms because it seems they struggle to define them correctly. Even giant international companies and governments are confused by these terms.

In Canada, it's impossible to avoid receiving printed letters from the government. All government branches operate separately. Updating your document delivery preference to electronic only for the CRA doesn’t help much because you also have accounts with IRCC, the Permanent Residence Portal, My Service Canada, Library and Archives Canada, ICBC, and so on. If you’re not committed to reducing paper waste and haven't visited each website to switch your preferences to electronic, you’ll likely find more printed letters in your mailbox. Banks can be worse than government branches; even opting for electronic bills and documents doesn’t always prevent banks from sending printed letters. For instance, despite my RBC account being set for electronic delivery, I still receive printed monthly statements.

Printed letters are just one example of how, in our digital world, we still struggle with simple changes, yet banks claim to be the greenest. If we can't manage the letters in our mailboxes, how can we track all the commitments and activities of banks and governments? Are we that dedicated to saving the planet, or do we have that much time? Monitoring organizations should be a governmental task, allowing us to focus on being better citizens and individuals.

Tangible Results Needed

Coming back to banks and their random huge numbers, the problem often lies in their unclear definition of sustainability. They might think adding a “Green Banking” tab and mentioning low-carbon financing investments is sufficient. For example, TD Bank claims to have invested $100 billion in low-carbon financing. Such a significant amount requires a detailed explanation, not just a passing mention. TD states, “In 2022, TD achieved its 2030 target of $100 billion CAD deployed toward low-carbon lending, financing, asset management, and internal corporate programs.” But what exactly does this mean? How did TD Bank decrease its carbon emissions by switching to greener supply chain choices? Can we see tangible data, or are we only presented with random numbers?

What Should Banks Do?

The only way to drastically reduce our carbon footprint is by focusing on Scope 3 emissions, achievable only by changing supply chain sources. Wouldn't disclosing the suppliers you work with to reduce carbon emissions be a great way to promote greener choices and smaller companies? Instead of just presenting numbers, maybe publishing third-party certifications could demonstrate genuine efforts. That’s why the headline is "The Greenest Company is the One with the Best Marketing Department."

The Need for Transparency

Transparency is crucial. We need third parties to support and track organizations' sustainability activities. Investing in sustainability isn’t enough; actions must match words. If an organization invests $100 billion, it shouldn’t simultaneously work with most polluting industries. We need non-profits that can guide us toward carbon net zero. PeriCarbon.org is one such organization. It provides a platform for businesses committed to sustainability to collaborate, share knowledge, and network, supporting members in implementing innovative emissions reduction plans and achieving their sustainability goals.

In-house environmental departments might be limited in making significant impacts. At this point, we need organizations that can effectively find tangible solutions and provide support.

References:

Statista.com. (2024, April 16). Topic: Immigration in Canada. Statista. https://www.statista.com/topics/2917/immigration-in-canada/#topicOverview

KING, S. D., & SEMESI, S. (2023, September 20). We’re past the point of no return on climate emissions - it’s time we turn to carbon removal. The Hill. https://thehill.com/opinion/energy-environment/4213981-were-past-the-point-of-no-return-on-climate-emissions-its-time-we-turn-to-carbon-removal/

Borenstein, S., & Jordans, F. (2023, March 21). World on “Thin ice” as UN climate report gives Stark warning. AP News. https://apnews.com/article/un-climate-change-report-ipcc-guterres-science-30d8451c0f3fb7b8a857e3ed4fd01172

Neslihan Arslan