| | | | | |  | | By Catherine Boudreau | Presented by BHP | This week, we delve into whether companies will step up in a divided Washington on sustainability issues including climate change and social and racial inequality. | | | | 
Senate Majority Leader Mitch McConnell (left) and former Vice President Joe Biden walk through Statuary Hall in January 2017. | Zach Gibson/AP Photo | PARTISAN BICKERING PRESSURES CORPORATE AMERICA TO ACT — Most signs point to President-elect Joe Biden returning to the swamp — with partisan brinkmanship alive and well. Senate Majority Leader Mitch McConnell and other top Republicans have so far refused to recognize Biden's victory , or weigh in on whether the Trump administration should certify the election and kick-start a transition. Many business leaders are relieved nevertheless. A Biden administration will be more predictable, although the scope of what he can achieve depends on the Senate, where two crucial races — both in Georgia — won't be decided until January runoffs. Plus, Democrats' failure to make major inroads in Congress means the party's most progressive ideas on climate change, labor rights and economic and racial inequality could be doomed At the same time, the pressure on corporate America to tackle these sustainability issues has only intensified during the coronavirus pandemic, as the disparity between rich and poor widens, people of color continue to be disproportionately affected by the virus and by layoffs, and wildfires and storms ravage communities from Louisiana to Iowa to California. Severe weather poses such a risk to companies' assets that the Federal Reserve for the first time on Monday formally named climate change as a potential threat to the stability of the financial system, which follows demands from Democrats and sustainability investors that Wall Street be more accountable for its contribution to global warming. Companies have two options in a divided Washington: to use it as an opportunity to lead, or use it as a shield to preserve business as usual. The former could pay off both financially — with emerging research showing that investment funds with environmental, social and governance standards outperformed the general market during the pandemic — and reputationally because younger Americans want to shop at and work for companies that align with their values. | | | | A message from BHP: At BHP, it's our job to supply the resources big thinkers need to make everything from naturally ventilated buildings to solar farms. It's a job that never ends. So we're always discovering more efficient ways to produce the iron ore, steel, copper, nickel and petroleum that have supported economic growth and made countless lives better, around the world. And you can't do that by thinking small. For details, visit bhp.com/BigThinkers. | | | It is becoming increasingly difficult for companies that aren't prioritizing sustainability to hide, said Hugh Welsh, president and general counsel of DSM North America, a manufacturer of nutrients and speciality plastics. The company is a member of the CEO Climate Dialogue, which advocates for federal policy that puts a price on carbon and reduces greenhouse gas emissions. "There has been a great void in the political class on addressing issues like climate change and racial and social justice that the business community has been called upon to fill over the last few years," Welsh said. Some have, but many have not, Welsh added. "Fear of the tweet" was real among CEOs during the Trump administration. "They were passionate about these issues, but afraid to stand out front and center," he said. The U.S. rejoining the Paris accord under Biden will be an invitation for the business community to be more ambitious on climate change, but it will be difficult to get major legislation through Congress. Some action is possible if there is a coordinated effort by groups including the Business Roundtable and U.S. Chamber of Commerce, Welsh said. The Roundtable, which represents the CEOs of more than 200 companies, in the past few months endorsed "market-based" climate policy and established a racial equality and justice solutions committee. However, critics argue these efforts lacked teeth, with no way for the public to discern whether Roundtable members actually follow through on their promises. | | | | TRACK THE TRANSITION, SUBSCRIBE TO TRANSITION PLAYBOOK: The definitive guide to what could be one of the most consequential transfers of power in American history. Our Transition Playbook newsletter—written for political insiders—tracks the appointments, people, and power centers of the new administration. Don't miss out. Subscribe today. | | | | | The traditionally conservative Chamber endorsed nearly two dozen House Democrats for reelection this cycle, but has exerted its political muscle to slow climate action and stronger labor standards, such as raising the minimum wage. The group also wants lawmakers to grant companies some legal immunity if their front-line workers get sick or die after catching Covid-19 on the job. Neil Bradley , the Chamber's executive vice president and chief policy officer, said he expects a "pro-business" agenda in Washington over the next two years. He cited the reelection of moderate Republicans such as Maine Sen. Susan Collins and Pennsylvania Rep. Brian Fitzpatrick, as well as the defeat of ballot measures in California and Illinois that would have hiked taxes on commercial property and personal income, as indications of Americans' support of pro-business policies. He left out that Colorado voters booted GOP incumbent Sen. Cory Gardner in favor of John Hickenlooper, who centered his campaign on climate action, and also chose to guarantee that all state residents are entitled to 12 weeks of paid family and medical leave. Florida residents supported hiking the minimum wage to $15 an hour by September 2026. Bradley said the need to address climate change isn't going away, but "only hastens with each passing day." Climate action will be a top priority for Congress, but it won't be a comprehensive package. Rather, the issue will be embedded in the next coronavirus stimulus legislation and infrastructure investments, he said. "We hear there is skepticism about how a divided government might be able to come together on big things. We don't share that view at the Chamber," Bradley said Monday during a call with reporters. "We see a path for a governing coalition that is likely to produce more bipartisan legislation and create more momentum for action." But will companies meet growing demands for more employee benefits and diversity within their ranks, especially at the leadership level? The pandemic and widespread protests over systemic racism underscored a bitter irony: Workers who suddenly became "essential," including nursing home aides, grocery store clerks and farm and food workers, receive low pay and few benefits. These front-line jobs are most often filled by people of color. | 
| Dozens of large companies including Walmart, Amazon and Kroger temporarily offered small pay bumps and bonuses to front-line workers, but have since ended those benefits. And only 34 percent of corporate directors say racial and ethnic diversity is important to have at the board-level. "Human capital — whether you take that from a diversity and inclusion perspective, safety and health perspective, skills and capability perspective — is pointing in the same direction: People are indispensable to the future of business," said Wes Bricker, vice chair and assurance leader at PwC, who tracks ESG trends on corporate boards. | | | Welcome to The Long Game! Be sure to catch up on our last issue, which previewed Senate races and ballot initiatives in which climate change and labor rights were at play. We want to know what you think and what we're missing. We won't take anything personally, promise. Send tips, critiques and all your sustainability questions — and answers — to cboudreau@politico.com. Find me on Twitter @ceboudreau. Did someone forward this to you? Subscribe here! | | | GIG COMPANIES' LABOR PLAYBOOK — Uber CEO Dara Khosrowshahi said his tech coalition will use its victory in California last week to launch a push for similar regulation of the gig economy in other states and countries, POLITICO's Jeremy White reports. "Going forward, you will see us more loudly advocate for new laws like Prop 22, which we believe strike the balance between preserving the flexibility that drivers value so much, while adding protections that all gig workers deserve," Khosrowshahi said. He added that "it's a priority for us to work with governments across the U.S. and the world to make this a reality." | 
Results as of 10 p.m. EST on Nov. 9. | Voters overwhelmingly passed Proposition 22, which shielded ride-hail and food delivery companies like Uber, Lyft, InstaCart and DoorDash from classifying their drivers as full-fledged employees. Instead, these workers will remain independent contractors, while receiving a narrower set of benefits including a guaranteed minimum wage and health care subsidies (tied to their driving time), as well as accident insurance. Prop 22 became a proxy fight in the national struggle over the changing nature of work. Labor unions and their Democratic allies say the measure is a step backward for gig workers who are being exploited, while tech companies — which spent $200 million on the ballot measure — argue the new employment model means drivers can keep on setting their own hours and keep prices low for customers. | | | |   | | | Tech executives are still interested in a deal with unions, which could make its playbook an easier sell in other states and in Congress. Postmates Vice President Vikrum Aiyer said his company will extend a hand to organized labor, "in hopes of an unclenched fist." House Democrats passed sweeping labor reform legislation earlier this year that would classify gig workers as employees, although it is unlikely to clear a Republican-controlled Senate. (The Chamber of Commerce lobbied against the bill, deriding it as "a litany of almost every failed idea from the past 30 years of labor policy.") | | | | 
Big banks aren't supporting mandatory climate regulations, but the president-elect's appointees to financial agencies could quickly lay plans for new rules. | Spencer Platt/Getty Images | WALL STREET BRACES FOR CLIMATE SCRUTINY — Big banks are positioning themselves as eager allies of the new Biden administration when it comes to fighting climate change by accelerating their voluntary pledges and making it clear they want a seat at the table when decisions are made, POLITICO's Zachary Warmbrodt reports. The big banks aren't supporting mandatory climate regulations, but the president-elect's appointees to financial agencies could quickly set plans for new rules, even if climate legislation is out of reach in a Republican-controlled Senate. Democrats and climate activists — skeptical of the voluntary promises coming from Wall Street — see financial regulators like the Securities and Exchange Commission as playing a key role, such as mandating that companies disclose more information on their climate-related risks and subjecting firms to intense scrutiny for lending the fossil fuel industry billions each year. | | | | KEEP UP WITH THE GLOBAL HEALTH AGENDA: If nothing else, 2020 revealed how critical it is to keep up with the politics, policy, and people driving global health. How are governments working to improve the health of their citizens? What role are NGOs playing? Who is driving the agenda? Our Global Pulse newsletter connects leaders, policymakers, and advocates to the people, and politics impacting our global health. Join the conversation and subscribe today. | | | | | JPMorgan, Bank of America, Citigroup, Wells Fargo and Goldman Sachs are among the firms that have committed to reducing greenhouse gas emissions. Industry representatives say international banks are prepared for this moment after years of pressure from environmental activists and growing interest among investors and foreign regulators. Bankers also see an opportunity in Biden's goal of investing $2 trillion in clean energy projects. "We're talking about trillions that need to be intermediated because of government spending or because of private interest and private demands," said Tim Adams, president and CEO of the Institute of International Finance. "We can be a part of that solution as that capital is being put to use for environmental purposes." | | | — The White House has reassigned the head of the program that produces the federal government's most definitive scientific report on climate change, POLITICO's Zack Colman and Alex Guillén report. — Tsunamis are becoming more likely in Alaska as hillsides, formerly reinforced by glaciers and frozen ground, crumble, High Country News reports. — A fig tree in the center of Nairobi has become a symbol of public opposition to a new highway over environmental and economic concerns, The New York Times reports. | | | | A message from BHP: For more than 130 years BHP has been producing the resources that have supported economic growth and made countless lives better, around the world. Everything we produce – including iron ore, coal, petroleum, copper and nickel – helps to deliver these outcomes. But the production of resources is not an end in itself; it is what these resources enable that makes the real difference: driving growth and development; underpinning materials for sanitation and healthcare; sustainable food production; developing industry; building vital infrastructure and allowing broad-based wealth creation. As our Purpose says, we exist to 'bring people and resources together to build a better world'." Mike Henry, CEO. For details, visit bhp.com/BigThinkers. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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