Akin’s Sustainability Internship is part of our commitment to operating as a more environmentally sustainable business and reducing the firm’s environmental impact. The semester-long program offers undergraduates the opportunity to deploy their educational specialization in a global professional services setting. Read more about Akin’s environmental commitments here.
Earlier this year, the Department of Energy (DOE) launched the Better Climate Challenge (BCC), encouraging domestic companies to set “clear and ambitious” greenhouse gas (GHG) emission reduction goals. Since the program’s launch, over 900 organizations have partnered with the DOE to mitigate their climate impact. With the DOE’s assistance, many of these groups are set to reduce their scope 1 and 2 emissions by at least 50 percent by 2030, in line with the Biden-Harris administration’s previously stated national goal. In response to concerns that the initiative would prompt companies to purchase emissions offsets instead of investing in long-term emissions reduction technologies and procedures, the administration specified that companies must meet their emissions targets without relying on carbon offsets. The DOE has pledged to support partners as they navigate their energy transition by offering customized technical assistance and implementation strategies to each industry sector. This post examines industry case studies, reviewing organizations in the manufacturing, financial services and education sectors, to examine how the BCC has encouraged widespread corporate decarbonization in the United States.
Decarbonization in the Manufacturing Industry. Motorcycle manufacturing company Harley-Davidson was an inaugural BCC Partner. Since joining the challenge in February 2022, the company has set targets to lower their emissions in the automotive industry. The board of directors voiced their allegiance to the company’s sustainable development goals, committing to 50 percent reduction of scope 1 & 2 emissions by 2030, compared to the company’s 2017 baseline. The board additionally committed to a 25 percent decrease in energy intensity by the same year. Harley-Davidson is employing a range of strategies to meet these ambitious targets, which include transitioning their manufacturing focus to produce electric motors. Since 43 percent of the company’s emissions are tied to the use and service of their products, this switch will be crucial for lowering the company’s overall emissions levels.
Decarbonization in the Financial Services Industry. Realty investment firm Boston Properties (BXP) has set ambitious sustainable development targets committing to the achievement of carbon-neutral operations by 2025. In 2021, the firm set a scope 1 & 2 carbon reduction goal of 39 percent by 2024, compared to their 2018 baseline. Following the announcement of their partnership with the BCC in February, the firm’s leadership reported additional reduction targets. These included commitments to 50 percent reduction in scope 1 and 2 emissions, compared to their 2018 baseline, and to 15 percent reduction in energy intensity over ten years. BXP hopes to achieve their goals through strategic investment in Leadership in Energy and Environmental Design-certified (LEED) properties. In a report published on September 30, BXP outlined its current involvement in three green projects that it expects to receive LEED certification by 2023.
Decarbonization in Education. Private Education Institute (PEI) Bard College had an array of climate targets set prior to partnering with the DOE as a member of the BCC. In a 2017 report, the college committed to carbon neutrality by 2035, which it said it would achieve through upgrading the energy efficiency of its facilities, while investing in renewable energies to power its campus. Upon joining the BCC, Bard College set further reduction targets to be met without reliance on carbon offsets. The board of directors has set out several goals, including committing to a 50 percent reduction in scope 1 and 2 emissions within ten years and a 20 percent reduction in energy intensity by 2023. To address their nonrenewable energy reliance, Bard College is adopting geothermal technology in new buildings in addition to developing solar and hydropower energy systems to power its campus. Bard disclosed in its 2017 report that approximately 50 percent of its total emissions are related to energy use, meaning the college’s transition to renewable energy sources is critical for achieving its climate goals.
Membership in the Biden-Harris administration’s BCC has encouraged Harley Davidson Motor Company, Boston Properties and Bard College to bolster their commitments to ambitious emission reduction targets and invest in sustainable development strategies and technologies that align with their operations given their different industries. Companies looking to decrease their carbon footprint should consider membership in the BCC and observe how prior BCC members in their industry have leveraged DOE input to make sustainable adjustments compatible with their sector. Akin Gump has advised companies across many sectors that are looking to decarbonize their operations and is a leading expert in helping businesses qualify for the BCC and other federal climate programs.
