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Corporations ranked on climate action

Nike or Adidas? Google or Yahoo? Scorecard helps shoppers pick.

Posted by Kate Sheppard at 5:32 AM on 20 Jun 2007

Read more about: green living | shopping | business | climate
Climbing the ladder. Photo: iStockphoto

Stepping back for a second from the fact that they all churn out unhealthy food and are a general blight upon society, which fast-food joint has the most cred on climate change -- Burger King? McDonalds? Wendy's?

A new scorecard issued Tuesday ranks corporations on their commitment to reducing their contribution to global warming, giving consumers an easy, go-to guide on how to spend their bucks with businesses that are trying to do the right thing. Nike or Adidas? Google or Yahoo? Well, it's a complicated question, but the folks at the new nonprofit Climate Counts have broken it down to a simple rating system that shoppers can take into account as they make purchasing decisions.

"We've been hearing that the vast majority of Americans would like to make the green choice, would like to vote with their dollars for environmental improvement, but they don't know how to do that," said Joel Makower, executive editor of Greener World Media and a member of the Climate Counts board, at a press conference announcing the new scorecard. "That's been very frustrating, and what's more, they're kind of cynical about what companies are doing or what they say they are doing because there are no standards and there's never been an official way to measure that."

The scorecard offers consumers just that by ranking 56 major corporations from a range of industries based on what they're doing -- or not doing -- to address climate change. The scores are on a 100-point scale based on four different areas: whether the company has reviewed its own impact, what it's done and what it is planning to do to reduce that impact, whether it has publicly reported both its impact and its reduction plan, and whether it has been active in public policy on climate change.

None of the corporations ranked in the scorecard achieved a perfect score, and only four even earned about a 70: Unilever, I.B.M., Canon, and Nike. Sixteen companies scored under 10 points, and six companies scored a flat zero, including both Burger King and Wendy's, making McDonald's the default winner of that showdown despite its score of a mere 22 points.

"I think that if the 16 companies that scored under 10 points use this news today to take the first steps toward finding out the facts and making a clear public commitment to fighting climate change, we as an organization have done our job, and I will be really pleased," said Wood Turner, project director for Climate Counts.

The scorecard also comes in a downloadable pocket version [PDF] that consumers can carry in their wallets to consult while cruising the mall. Climate Counts has even set up a service so shoppers can use wireless devices to text in the name of a company and get its score instantaneously.

Climate Counts is the brainchild of Gary Hirshberg, the CEO of Stonyfield Farm and founder of O'Naturals, the fledgling organic fast-food chain. An environmentalist who fell into business almost by accident, Hirshberg said that the scorecard seemed like a simple way to educate consumers who can in turn push businesses to improve their environmental records.

"Our objective is to stimulate business to make climate a priority. We're not going to consume our way to a healthy planet, but given that we are a consumer culture, this is the pathway that is available to us," said Hirshberg. "I don't expect consumers to change their fast-food choice immediately or the shoe brand they buy or the type of electronics company they support immediately because of the score," he continued. "But I do expect consumers to let companies know they are watching, and they are interested."

Hirshberg's own Stonyfield Farm -- which provided the seed money to get Climate Counts up and running -- achieved only a 63 on the scale, and its corporate parent, Groupe Danone, got an unimpressive 50. Hirshberg said these results made it all the more clear to him why businesses and consumers need this sort of clear system for examining their actions.

"I knew that we would not get a 100 or even a 90; I assumed we would be in the 70 to 75 range. The fact that we fell a few points below that was a surprise, but a positive one. It's really mobilized us," he said. "It increases my appreciation of the veracity and effectiveness of the scorecard."

And the whole point of the scoring, said both Hirshberg and Turner, is to push businesses to do better over the course of the next year to improve their scores. The scorecard also gives consumers a good reason to call or write to the businesses that are sucking wind to tell them to get their acts together.

"I don't fault companies that start with a low number, but I sure as heck will fault them if six months from now, after this gets out there and publicized, they haven't done anything," said Hirshberg. "The gloves will come off in the next round."

Corporate shilling in your wallet

My main impression from this scorecard is a picture of how narrow some "environmental" projects can be. This scorecard obviously leaves out such basic issues as corporate responsibility to workers and communities.  Take a look at you will see Nike leading the pack in Apparel/accessories, Starbucks leading Food Services, and General Electric leading Media (through their ownership of NBC, I assume).  Anyone concerned about Nike's union busting and race-to-the bottom sweatshop labor practices, Starbucks's destruction of local culture and small-business competitors, or GE's role as a major weapons manufacturer will see this emanation of the environmental movement discounting those concerns 100%.  

By their own admission, "Climate Counts" only ranked major corporations and used limited criteria based on whether these corporations measured their climate footprint, reduced it, disclosed their efforts, and supported/opposed climate change legislation.  But that's just too narrow a criterion to put on a wallet-sized card.  If you can only carry a few square inches of information, it shouldn't be that Starbucks is better than Wendy's -- it's far more "green" to support a local business than choose among the world's greediest corporations.  This scorecard fails deeply, in my mind, by failing to include non-corporate, local-scaled businesses, even while putting out the slogan "how you shop and invest changes the world."  Environmentalists should be fighting the invisibility of local business which gives mega-corporations a huge edge, even while some of us try to teach large corporations about their responsibility to protect the environment we all share.  Honestly, this level of work would be better spent promoting coalitions of local businesses rather than even the best practices of the best transnationals.

I'm going with a Van Jones-esque idea here that so see real environmental progress we need to see mainstream environmental groups build a joint constituency with other progressive causes, working people's issues, and the struggle against racism because the forces of authority and corporate power will never act in the best interests of a defenseless planet, so this scorecard seems counter-productive from that perspective.  Just by chance, I am doing some reasearch today on Transport for London, where they use the term "sustainability" consistently to refer to environmental, social and economic concerns.  It's impressive, the way they make caring about equal opportunity and respect for workers on a par with protecting the environment and running the business. From that perspective, this scorecard is not even 1/3 of the way there.


Raphael Sperry

Joel makes a good point,

How do citizens find the chameleon hinding in all the greenwashing?

"...they're kind of cynical about what companies are doing or what they say they are doing because there are no standards and there's never been an official way to measure that."

In the end, it all comes down to biodiversity. Poison Darts--Protecting the biodiversity of our world

Corporate Cliimate Change

I think this new idea is awesome! I really thank Climate Counts for providing this valuable information to people whether they use it or not. With all of the food security scares finally making it to the public, we are going to see a shift in the public's out look on some of the crap that is going into conventional food choice now a days. I am really hoping that GMOs are going to get really big press now on how dangerous they are and why we need to have them labeled and avoided. The mass experiment must end! I also thank Morgan Spurlock for both his book "Don't Eat This Book" and his wonderfully revealing movie "Super Size Me" This man has been the pioneer and put his own health on the line to point out how unhealthy and down right dangerous fast food is to your health. Thanks again Climate Counts and Grist for spreading the word!

"For as long as space endures, and for as long as living beings remain, until then may I too abide, to dispel the misery of the world." - Shantideva
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