An interview with Maximilian Schlicher
Many companies in the US have already established themselves as leaders in the corporate climate action space. However, the “land of opportunity” is still regarded as a sleeping giant with untapped potential for scaling up impactful corporate climate action. We checked in with Maximilian Schlicher, our expert for corporate climate action in America, to get insights on what can drive more corporate climate action forward in the country, exciting trends in corporate climate action, possible regulatory and policy changes, and more.
Hi Max, thanks for sitting down to talk with us. What are some trends you see developing in the USA for corporate climate action?
Supply chain decarbonization is really coming into focus for companies in the US right now.
After the pandemic, companies became hyper aware that their supply chain could be exposed to global events. The climate crisis is predicted to have a more serious and more long-term impact on supply chains than even the pandemic. So, it’s not only about reducing emissions along the supply chain, but also making supply chains more resilient and adapting them to a changing climate. I see that this has fundamentally changed how entrepreneurs and business leaders in the US look at climate change and at possible solutions and technology.
Supply chain emissions are usually many times higher than operational emissions, so more focus on decarbonization along the supply chain could have a massive effect on the way that companies take climate action and on how they respond to the challenges of climate change. It’s by no means an easy fix, though.
What do you see companies in the US doing right for corporate climate action? Do you have any examples?
I think American companies are among the first to have grasped the full potential of carbon removals. These technologies can help us to permanently store carbon from the atmosphere. They can be a game changer in corporate climate action and from my perspective, American companies are really leading the charge on the carbon removals front. Just recently, Microsoft signed a forward contract for carbon removal credits from First Climate and SUEZ’s Carbonity biochar project in Canada.
Novel carbon removals like biochar are still exclusive due to their limited availability but the more companies decide to make them part of their climate action strategy the more options there are to scale the technology and increase supply.
I think American companies are among the first to have grasped the full potential of carbon removals.
This is exactly where companies in the US can set themselves apart as leaders in the corporate climate action space: By staying ahead of the curve with investments in these innovative climate technologies.
What’s your opinion on the current role of carbon credits in corporate climate action in the USA?
The current US Administration recently expressed its support for the voluntary carbon markets and published its own policy recommendations for high-integrity markets, so it’s an exciting time for companies that want to use carbon credits as an additional tool in their climate strategy. I see this as an important contribution to the ongoing discussions on how to best utilize carbon credits for corporate climate strategies. There’s no doubt that there are many benefits to carbon credits, the key question for me is how we can guarantee a high-integrity market in the US.
There’s no doubt that there are many benefits to carbon credits, the key question for me is how we can guarantee a high-integrity market in the US.
For companies that want to approach carbon credits more confidently, it is important to have a compass to refer to when taking decisions about which projects to support. I would recommend companies to consult with an expert that has proven and long-term experience in the field, like First Climate, for guidance on what to look for when it comes to buying credits from a high-quality project.
There’s also an increase in companies that are investing in carbon projects, specifically in the early-stages, which provides increased control and ownership over the direction of a project. With their own project, companies can be involved throughout the entire process, which presents a range of unique opportunities. In my opinion, this type of project development will contribute to an increase in company specific projects. Our team is excited to be at the forefront of this type of project-based climate action, and we expect the demand for company-driven project development to continue to increase.
What does the current climate disclosure regulation landscape look like in the US?
After 2 years of comments from stakeholders and a heated debate in Congress, the final Securities and Exchange Commission (SEC) climate rules passed in March.
At their core, the SEC's climate rules mandate that public companies provide detailed disclosures on how climate change affects their business operations, financial performance, and outlook. This includes reporting greenhouse gas (GHG) emissions, which would be a significant step forward in standardizing climate-related non-financial disclosures for many companies within the United States. The idea was to structure the rules to ensure that investors have access to consistent, comparable, and reliable information, enabling them to make more informed decisions.
But with lawsuits currently slowing down the implementation of the new rules, the SEC has now put them under a temporary pause. So, it’s a bit of a waiting game now, to see what companies will have to comply with in the end. Our team will keep an eye on any developments and we’re ready to support companies either way.
That leaves a lot of uncertainty surrounding climate disclosure for companies in the US. What would be your advice for companies to be best prepared?
I would advise companies to view this pause as a chance to get ahead on ESG in their company. Whether the SEC rules go through or not, calculating your annual carbon footprint is a great start—This gets the data collection ball rolling and gives you a solid foundation from which to build your disclosure if it does go through. It’s also the perfect place to start building a comprehensive climate strategy.
What can drive corporate climate action forward in the US? Is it different to other regions of the world?
Well, in other regions like the European Union, setting aside company resources for climate action is in many ways mandatory, whereas in the US voluntary leadership commitment is of much greater importance to drive corporate climate action forward. An effective climate strategy could include a sizeable investment in a project, or the integration of sustainability initiatives and decisions throughout all levels of the company, so putting climate action as a priority at the top is crucial. It’s not easy, but it’s necessary for companies that want to stay competitive in the future.
It’s not easy, but it’s necessary for companies that want to stay competitive in the future.
More and more companies in the USA are deciding to take climate action: the United States hosted the highest numbers of companies on TIME’s “Most Sustainable Companies of 2024” list alongside Japan and the UK.
Do you have any tips for getting leadership buy-in?
Present the facts, but don’t just show up with a list of problems to management. Having a clear action plan and highlighting the attached benefits for risk management and brand reputation is going to get you the leadership buy-in that you need to put your company on the right path.
I think it’s also important to not get discouraged if you don’t get the buy-in right away. Keep the topic on the table with regular updates on progress and successes, and good management will take note. Corporate climate action is a marathon after all, not a sprint.
In just a couple months you’ll be back at Climate Week in New York City. What do you expect to be a key topic this year?
Supply chain decarbonization can look vastly different from company to company and there is no one size fits all solution. Which is why I expect this to be a key topic at this year’s climate week in New York. I look forward to discussing this topic with companies on the ground and sharing First Climate’s expertise to help businesses build a resilient and low carbon supply chain.
Sounds like an exciting time for climate action in the US. Thanks for the insights, Max! We appreciate it.
Meet Max and Vincent at Climate Week in New York City!
Meet Max and Vincent Erasmy, First Climate’s Team Lead International Sales, in New York City from September 22-29 to discuss impactful corporate climate action.
This year’s theme is “It’s Time”, so let’s find a time to meet!
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