FOSSIL FUEL TREATY BUSINESSES ENGAGEMENT
Every industry, every organisation and every job depends on our climate remaining stable. The world now strives for healthy, regenerative economies that run on resilient infrastructure and that provide good education, safe homes and better jobs. We need to implement innovative government policies for a managed climate transition, to challenge the climate laggards, and to deliver finance and business transformation that decarbonises the world once and for all.
By transforming industries from extractive climate models to crucial change agents, businesses can play a leading role in building a new, just and sustainable future.
Find out more about how businesses can support the Treaty and explore our resources and tools below.
Why support the Fossil Fuel Treaty as a business?As the climate crisis intensifies, businesses are coming under increasing scrutiny to demonstrate how they are preparing adequately for the inevitable climate transition. There is now growing pressure for businesses to illustrate climate leadership from diverse sources including:
Growth in mandatory and investor-led climate disclosure regimes
Increased scrutiny of net zero pledges
Increased business climate litigation cases
Growing citizens and worker movements
Ability to attract and retain employees
Mainstreaming of climate criteria for accessing finance
Increased civil action
Growing ambition in international and national climate plans
Resources for Businesses-
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Briefing for businesses
This briefing document provides a detailed overview of the need for a Fossil Fuel Non-Proliferation Treaty, sets out the strong case for why businesses should support the Treaty and provides a useful overview of how businesses can support the Treaty.
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Why businesses should support the Treaty
This document provides an overview of why businesses should support the Treaty, and the benefits of doing so.
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Template letter to CEOs or Boards
Do you or your colleagues want to approach your CEO or Board to encourage them to endorse the Fossil Fuel Treaty? This helpful template letter can be adapted for your own business context and can be used to reach out to your own CEO or Board.
Support the Fossil Fuel Treaty as a BusinessIf you have any questions about supporting the Treaty as a business, please contact: business-engagement@fossilfueltreaty.org
Through supporting the Treaty, businesses can demonstrate climate leadership, play a key role in securing a liveable future, and deliver a range of positive outcomes including: -
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REDUCING RISK
On our current trajectory, global heating will reach well above 1.5ºC, creating risks for all businesses and industries, their employees and wider stakeholders. The Fossil Fuel Non-Proliferation Treaty will help ensure a safer climate transition that is delivered by design, not disaster, therefore reducing the risks of physical impacts such as extreme weather events, and transitional risks such as the creation of stranded assets or damaging political lock-in.
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NET ZERO CLARITY
While net zero commitments are growing in number, their integrity is increasingly being challenged due to the limited impact in reducing absolute emissions to date and an over dependency on technologies that are not proven at scale and that don’t address the root cause of emissions - like carbon capture and storage (CCS), carbon dioxide removals (CDR), and other geoengineering approaches that serve to delay or distract from real climate action. A Fossil Fuel Non-Proliferation Treaty is needed to provide clarity that ensures net zero commitments are underpinned by a global mechanism to permanently move away from fossil fuels and business as usual.
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FOSTERING INVESTMENT AND ECONOMIC DIVERSIFICATION
The lack of clarity regarding fossil fuel phase out is limiting and delaying investment in renewable energy and wider economic diversification. A Fossil Fuel Non-Proliferation Treaty will unlock new opportunities, helping to create a policy landscape that fosters new business and finance models that will support the transformation of industries in line with achieving a safe and equitable world.
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REPUTATION
Employees and wider stakeholders are increasingly concerned about the climate crisis, and eager to work in businesses that align with their values and that show leadership through tangible and authentic climate action. By supporting the Fossil Fuel Non-Proliferation Treaty, businesses are sending a clear signal to their stakeholders that they are committed to moving away from fossil fuels, willing to advocate for ambitious climate action, and are playing an active role in preparing adequately for the transition ahead.
A Fossil Fuel Non-Proliferation Treaty will play an important role in solidifying the direction of travel for businesses, removing the barriers to business model transformation, creating a more level playing field, and helping to secure a stable operating environment.
Business support for a Fossil Fuel Non-Proliferation Treaty is vital to ensuring a fast and fair transition.
FAQs for Businesses-
Through our business engagement, the Fossil Fuel Non-Proliferation Treaty seeks to prioritise ambitious climate action and progressive business models that are focused on immediate emission reductions in the short-term and that align with our three pillars and the values of our wider network. Our criteria has been established to reflect this approach.
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Business support will be used to help raise awareness for the Fossil Fuel Non-Proliferation Treaty at key moments and coordinated events and communications. We will keep all supporters updated of these activities.
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There are currently a wide range, and growing number, of networks and initiatives focused on mobilizing business to advocate for, and act on, climate action. Support of the Fossil Fuel Non-Proliferation Treaty by business networks and initiatives may be a powerful tool to demonstrate support for fast and fair climate action.
We welcome opportunities to explore engagement with business networks and initiatives, and will consider each on a one-by-one basis.
Please get in touch at business-engagement@fossilfueltreaty.org if you are a business network or initiative and would like to work with the Fossil Fuel Non-Proliferation Treaty.
To guide our engagement with businesses, the Treaty has established a range of criteria to assess whether the actions of business supporters align with the goals and values of the Treaty.
Our criteria is also intended to promote the delivery of business climate transition plans that focus on immediate absolute emission reductions, business model transformation, and an equitable transition, rather than depending on technologies, offsets, geoengineering or other approaches that have been used to excuse fossil fuel expansion and delay climate action.
If you are considering supporting the Fossil Fuel Non-Proliferation Treaty as a business, please select the relevant business category for more details on our criteria.*
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Climate Transition Plans:
In line with IPCC pathways that limit warming to 1.5°C, based on established methodologies
Outline plans or moratoriums to avoid any involvement in the expansion of fossil fuels
Include specific targets aimed at ending the use of and/or support for fossil fuels in line with IPCC pathways that limit warming to 1.5°C with no or limited overshoot
Based on direct absolute emission reductions
Include climate risk analysis including physical and transitional risk
Outline how plans align with a just transition and human rights
Outline how plans address biodiversity impacts
Provide details of resources and finance needed to deliver transition plans, in particular near term targets
Makes assumptions clear and acknowledge data gaps
Targets:
Align with IPCC emission pathways that limit warming to 1.5°C with no or limited overshoot
Disclosure of level of reliance on offsets and carbon removals, in particular through to 2030, with a commitment to prioritize immediate and direct emission reductions
Specifically commit to reduce emissions in absolute terms
Address Scope 1, 2 and 3 emissions
Include all GHG emissions
Specific targets to move to 100% renewable energy
Provide details of near-term and long-term targets including 2025, 2030, and 2035
Include all jurisdictions and all operations across the value chain
Address financed emissions
Makes assumptions clear and acknowledge data gaps
Governance:
Public climate commitments made by leadership
Integration of climate targets with remuneration and wider policies
Align business government engagement activities with climate commitments
Climate expertise among board members and leadership
Reporting:
Evidence of transparent, independently verified climate reporting based on established methodologies
Disclosure of pathways used and any assumptions made
Annual disclosure on progress against targets including material changes, deviations from targets, and detailed proposals to address any deviations
Engagement:
Stakeholder engagement plan to engage and support suppliers, consumers, employees with climate action and value chain decarbonisation and evidence of collaboration with peers
Climate considerations within client and customer selection policies
Climate considerations within procurement policies
Advocacy:
A commitment to not lobby against climate related policy directly or through trade associations and track record of same
A commitment to lobby and leverage influence for necessary climate action
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For some sectors, further information will be sought that reflects the material issues and impacts caused by that sector’s activities, including:
Financial Institutions:
Disclosure
Disclosure of financing volumes and financed emissions both in relative and absolute terms
A breakdown by activity for fossil fuel sectors
Commitments
Commitment to cease financing for any new fossil fuel projects or for expansion of existing projects including asset financing and related infrastructure
Restriction of finance to companies that are highly exposed to fossil fuels and fossil fuel decline
Coal
Include an immediate end of lending, underwriting, and investments in any company planning new coal infrastructure, power plants, and mines
Policies to phase out coal must include commitments to end financial and advisory services and include a just transition plan for workers
Oil and Gas
Oil and gas phase-out policies must include a commitment to end financing and investing related to exploration, expansion, and production activities
Diversification
Development of investment products aligned with 1.5ºC, that facilitate increased investment in renewable energy
Practical examples of efforts to fund near term decarbonisation and to support the financing of transition goals in developing markets
Wider Issues
Policy of not investing or financing businesses linked to deforestation
Account for nature dependencies, and anticipate forthcoming guidance
Established FPIC (Free Prior Informed Consent) policies
Voting strategies that align with climate transition plans
PR/Advertising
Client Disclosure Report and commitment to not work with fossil fuel clients or their enablers with no credible transition plan
Consultancy
Client Disclosure Report and commitment to not work with fossil fuel clients or their enablers with no credible transition plan
Insurance
Commitment to end or restrict underwriting for new oil, gas, and coal projects
Phase out, in line with a credible 1.5ºC pathway, insurance for coal, oil and gas companies.
Media / Social Media
Climate Misinformation and Disinformation Policies
Commitment to ban fossil fuel advertising
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Must have:
Proven efforts to minimize emissions across value chain
Assigned responsibility for climate action within the business
A commitment to not lobby against climate related policy directly or through trade associations and a track record of same
A commitment to lobby and leverage influence for necessary climate action
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Companies whose primary function is fossil fuel supply and/or production and/or development of new fossil fuel infrastructure unless those companies have stopped expansion and committed to an equitable managed decline in line with 1.5C
Companies who play an active role in funding new fossil fuel infrastructure
Companies who are campaigning against strong climate policy
Companies whose primary function involves established and recognised exclusion activities
Companies whose activities have been identified as directly promoting the increase of further fossil fuel supply and production
Companies whose primary function is the provision of unproven technologies that have been used to excuse fossil fuel expansion including carbon dioxide removal, carbon capture and storage, geoengineering, or carbon offsetting activities and products
*We recognise it is difficult to apply ‘one size fits all’ criteria given the diverse nature of businesses. The criteria set out above is designed to capture key issues, however wider issues may be taken into account when engaging with businesses that reflect the goals of the Fossil Fuel Non-Proliferation Treaty campaign.