As corporations have come to recognize growing interest in their environmental impact, most firms have chosen to constructively engage with the public. The “greenest” companies have reduced their energy use and the impact of their products and operations, and many others have at least claimed to do so.

Such “greenwashing” is a concern of investors who consider environmental, social and governance (ESG) factors in their evaluations of corporate sustainability. But even as major firms have chosen, perhaps grudgingly, to work with their ESG stakeholders, at least one business lobby has taken a different tack.

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This week, in a statement cited at Green Inc., Nike said that it “fundamentally disagrees” with the US Chamber of Commerce’s position on climate policy. The shoe giant joins three major utilities in opposing the Chamber’s recent lobbying efforts, which include a call for a “Scopes monkey trial of the 21st century” regarding man-made climate change.

Why are some corporations so eager “to boost their green credentials,” in the words of Ann Fifield of the Financial Times? Perhaps these firms would rather defy their peers than alienate their customers – or their Senators.

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On September 21, Newsweek introduced its landmark Green Rankings of the 500 largest publicly-traded US companies. This project, for which KLD was the lead research partner, was guided by an advisory panelof academic and non-profit policy leaders, including Wood Turner of ClimateCounts.org.

The Green Rankings are a recognition that public interest is the key to better corporate environmental practices.

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On August 11, the Financial Times reported on the promise of “synthetic biology,” including the development of algae that generates biofuels. In July, ExxonMobil entered into a $600 million venture with Synthetic Genomics, a firm founded by biotech pioneer Dr. Craig Venter. “Synthetic Genomics has already engineered strains of algae that secrete oil from their cells,” writes the FT’s Clive Cookson.

Will oil companies transform themselves into algae companies? Or, a few years from now, could the makers of “Who Killed the Electric Car?” film a sequel about algae?

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Institutional investors may have a fiduciary duty to consider environmental, social, and governance (ESG) factors, according to a new study from the United Nations Environment Programme Finance Initiative (UNEP FI). In reporting on “Fiduciary Responsibility,” Social Funds’ Robert Kropp expressed the uncertainty that still surrounds the question of ESG-related fiduciary responsibilities:

“The report argues that consultants may well have a legal duty to proactively raise ESG issues with their clients. The report also recommends that ESG issues be embedded into legal contracts between asset owners and asset managers.”

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As the Senate deliberates over the House’s Waxman-Markey cap-and-trade bill, Politico has presented a debate on the bill’s potential impact on the US economy. Mindy S. Lubber, of the environmental coalition Ceres, argues that Waxman-Markey “deserves our support.” In response, William L. Kovacs of the US Chamber of Commerce tells why he believes the economy will be harmed by the bill’s provisions.

Their discussion is a useful summary of pro- and anti-Waxman-Markey arguments. It also shows that a productive public policy debate depends on data. While both sides marshal projections and estimates to make their case, neither can present hard numbers on the cost of carbon emissions by American business. Many companies disclose some data, but without standardized, economy-wide reporting, no one can know the real costs or benefits of a cap-and-trade scheme.

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As the Obama Administration seeks to overhaul financial regulation, a multi-trillion-dollar coalition of investors has argued that the government should require corporate disclosure of climate change-related risks. Climate Risk Disclosure in SEC Filings – a deceptively modest title – calls for replacing the current hodgepodge of voluntary disclosure with a federally mandated reporting regime.

Ceres, the Environmental Defense Fund, and other sponsors of this Corporate Library-produced study formally presented their findings to the Securities and Exchange Commission (SEC) in a June 12 letter.

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In May, the Obama Administration announced new fuel economy standards for cars sold in the US. According to activist Daniel Becker, as quoted in the New York Times, “This is the single biggest step the American government has ever taken to cut greenhouse gas emissions.”

More big steps are to come. The EPA has been soliciting public comments for “the first comprehensive national system for reporting emissions of carbon dioxide and other greenhouse gases (GHG) produced by major sources in the United States.”

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On May 26, Responsible Investor reported on a new study calling for pension funds to better prepare for climate change. Pension trustees may even have a fiduciary duty to account for climate-related risk, according to study authors Craig Mackenzie and Francisco Ascui of the University of Edinburgh Business School.

Investor Leadership on Climate Change, written on behalf of the United Nations Principles for Responsible Investment (PRI), explores the role of investors in reducing global carbon emissions. As reported by RI’s Hugh Wheelan, the study finds that this role will be immense:

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Only 24% of voters know that “cap and trade” describes an environmental policy proposal, according to a new Rasmussen poll. Matthew Yglesias at ThinkProgress cited the results this week, and also noted that 46% of respondents guessed that cap and trade involves Wall Street regulation or health care.

The KLD Blog is not typically concerned with opinion polls, but this survey hits close to home. As stated on our “About” page, “KLD analysts stay apprised of economic, financial and political developments worldwide, and the KLD Blog shares our expertise with you.”

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