Why Local Businesses Must Be Involved in the Climate Conversation
When most people think about climate action in the commercial sector, we think about large corporations, and for good reason. They make up a significant percentage of our economy, and the imagery of these organizations - large factories, skyscraping headquarters, and fleets of trucks - are most closely linked with carbon emissions and the climate shifts they are inducing.
Make no mistake, significant and timely action by the world’s largest companies is essential for addressing climate change. However, by getting stuck with these images, we are missing a big piece of the puzzle, one that is perhaps much greater than most people realize. We are also missing a great opportunity to translate climate solutions into local issues that can improve our communities and support a thriving and diverse economy.
This missing puzzle piece is local commerce, both locally-owned small businesses and nonprofits, especially in cities and metro areas. At C3, we have made it one of our core strategies to meet these local organizations where they are, collaborate with them, and catalyze them into local climate leaders.
We believe this is fundamental to successful climate action for three key reasons:
Impact: local commerce has a significant impact on GHG emissions, both within communities and at scale across the globe, and must engage to meet our goals.
Trust: data shows that local organizations are far more trusted as community leaders than large corporations or government institutions.
Opportunity: climate solutions are major economic opportunities, and we need investment in clean energy and technology to benefit local commerce, not just large companies. This is a critical element of a just transition to clean energy.
Let’s take a deeper look at each of these areas.
Impact
Next time you are driving (or biking, or strolling) around your city, make a mental note of these three things: commercial vehicles, buildings, and parking spaces. How many of these are operated by or connected with a local business? It may be more than you think.
That’s an imperfect exercise, of course, but it should get you in the right frame of mind for how local commercial organizations contribute to emissions, and how they can be part of reducing them. Let’s also set the context with some key data points, because we love data at C3!
Almost 60% of global emissions are from energy use in buildings, industry, and transportation, most of which is associated with commercial activity. The makeup is similar in Richmond and Charlottesville.
Small and mid-sized enterprises (SMEs) are significant contributors to the overall US economy. One recent study estimated that SMEs produce ~44% of America’s economic output.
According to the UN, urban areas contribute roughly 75% of global emissions, “with transport and buildings being among the largest contributors.”
When you add up those factors, you see why global corporations simply can’t be the only actors reducing emissions in the commercial sector. Local organizations must play a part, especially when it comes to meeting reduction goals that are being set by local governments across the country. Fortunately for us and for them, climate solutions don’t need to be painful. They can enhance both an organization’s stature in the community and its bottom line.
Trust
Even in these polarized times, Virginians tend to agree on at least one thing: data shows we don’t trust corporations or governments to have our best interests at heart. When asked the question “how much do you trust the following institutions to do what is right?”, Virginians overwhelmingly put their trust in nonprofits and local businesses over any other type of organization.
Further, the types of issues that Virginians want to see addressed by these organizations heavily intersect with both the risks posed by climate change, and the local benefits that climate solutions will provide.
While a limited view of climate change as an “environmental” issue may cause you to think climate action is middle of the pack on people’s minds, let’s look deeper at just a few examples from the chart above:
Local climate solutions and clean energy transitions will play a vital role in improving health outcomes within a community.
Zoning and housing availability are vital tools for creating more connected, affordable, and accessible communities, all keys to a climate-friendly future.
Extreme heat, flooding, and other climate change impacts are increasingly harmful to public safety.
Rising energy costs and lack of access to energy efficiency and clean energy are major threats to the economic security of low- and middle-income households (and cash-strapped small businesses!).
These are all, at least in part, very local issues which require community collaboration to solve, and they all intersect with climate change. Virginians are telling us very clearly that local businesses and nonprofits are best suited to step up on community climate issues.
We can clearly see from the data that these organizations are positioned as key leaders in coalitions for enacting climate solutions for a more vibrant future. This may start by taking action within their operations and reducing their own emissions, but it doesn’t have to stop there. Some of C3’s most successful advocacy has gathered the support of residents, community organizations, and businesses into a powerful collective voice for change.
Opportunity
I’ve saved perhaps the best news for last when it comes to climate solutions for your local business or nonprofit: they will help your organization thrive. At C3 we coach on the three most impactful commercial solutions at the local level: energy efficiency, clean energy, and electrification (switching fossil fuel appliances or vehicles to electric power). The common thread in all of these? They will save a lot of money in the long run!
Climate solutions have always been a good deal financially. To sweeten the deal, we are now in the midst of unprecedented government investment in energy and climate solutions, spurred in large part by the Inflation Reduction Act (IRA) of 2022.
Let’s consider just some of the key solutions at your fingertips, which are made all the more attractive by the IRA:
Thermostats: If you do one thing for the climate, get a cheap programmable thermostat, it will pay you back in a few months and could cut your energy bills by 25% or more!
Light bulbs: switching to LEDs can cut your lighting power costs in half, and they typically pay for themselves in just a few years.
Heat pumps: Want to get flames out of your building and stop adding to local air pollution? Want a heating system that is over 300% more efficient than your furnace or boiler? Yeah, heat pumps are pretty awesome.
Electric vehicles: wall-charging a company EV at the office costs about a third as much as you would pay in gas.
Solar panels: With solar costs continuing to decline and paybacks as quick as 3-4 years with rebates and grants, it’s a great time to look into solar power.
These actions aren’t just financial opportunities, either. Climate solutions are people opportunities, too. A significant share of employees in companies both large and small say that they seek sustainable action from their employers, and it can be a key factor in a job search or switch.
As great as these solutions are and as meaningful as they can be, we must acknowledge that they are not as simple as snapping your fingers. As with many things in business, you have to spend money to make money, and climate solutions are no exception. Access to capital and competition with other investment needs is one of the main barriers preventing more small and local businesses from getting in on the act.
We are in the midst of a generational transformation of our energy systems, and the level of government and private sector investment in this transition is unparalleled since the New Deal of the 1930’s. We need much of this investment to go to local businesses and nonprofits, to help maintain a competitive and vibrant economy and keep large corporations from widening the gap. It is imperative that large companies do not become the main benefactors of this investment simply because they already have the resources to take advantage of it. This requires intentional policy and financing to target these organizations, and it also requires local businesses to get educated and seek these solutions for themselves.
Businesses of color, in particular, can unlock generational wealth for their owners, employees, and communities that was previously inaccessible through our stratified economic system. It is critically important that they be given the chance to benefit economically from climate solutions, ranging from simple thermostats to electric trucks and solar on their roofs.
In Conclusion
I hope this summary has gotten you excited and thinking about the important role of local business and nonprofits in our quest for local climate solutions. You don’t even have to be a business owner or nonprofit leader to make a difference. You may just be curious about what you can do at your workplace, or your favorite restaurant, or your dentist’s office. And very often, it’s just a matter of doing that one first thing to get the ball rolling.
If you’re looking to dig in further, check out our new and growing Resource Library! And if you think your workplace is ready to take the next step, you can always reach out to C3 about working together to reduce your emissions, lead on climate, and make lasting change in your community.