Sign in Subscribe
Software industry

Major Tech Companies and Fossil Fuel Affiliates Distance Themselves from Controversial Organization

Strategic Insights

— 1 min read

Tech giants Facebook, Yelp, and SAP America have joined Google and Microsoft in ending their relationship with the American Legislative Exchange Council (Alec), a move largely attributed to the organization's views on climate change. This exodus has sent shockwaves through climate advocacy circles and highlights a major shift in business attitudes towards environmental regulation. The simultaneous distancing from Alec by major fossil fuel-affiliated corporations suggests that companies are increasingly feeling pressure to take a stand on climate change, with repercussions for those that lag behind.

Key Takeaways:

  • Since September, 9 major corporations have announced they are discontinuing their Alec membership, including Google, Microsoft, Facebook, and several fossil fuel-affiliated companies.
  • The recent exodus is the first largely attributable to Alec's views on climate change, marking a significant shift in business attitudes towards environmental regulation.
  • Companies across all industries are increasingly expected to take a public position on environmental and social issues, such as carbon pricing and income inequality.
  • Forward-thinking companies are partnering with civil society organizations and advocating for progressive climate policies and mitigation strategies, such as renewable energy growth and materials innovation.
  • Campaigners are growing increasingly savvy and innovative in targeting companies that lag behind on climate change, with examples including Greenpeace's Lego-Shell campaign and Climate Parent's Radio Disney-Ohio Oil & Gas Association campaign.

Statistics:

  • 9 companies have announced they are discontinuing their Alec membership since September.
  • The majority of global brands now recognize that ignoring climate science is bad for business.
  • Nearly all consumer-facing companies (and their suppliers) face the likelihood of being asked to take a clear public position on an ever-expanding group of environmental and social issues.
  • The values-led business hub is funded by SC Johnson.

Sources:

  • "Microsoft joins Google walkout over US gun rights group," BBC News.
  • "From the Editor's Desk: Disengaging from the Fray," 311.com.
  • "New Report Highlights Shift in Business Attitudes towards Climate Change," ClimateWire.

Read more