Why should businesses work on air pollution?
- Decarbonise with local benefits: Tackling air pollution benefits everyone – including customers, employees and the communities where businesses operate. Taking action to improve air quality is a tangible and localised way companies can decarbonise, while improving community health and social equity.
- Boost sustainability goals: Better air quality helps businesses make progress across 11 Sustainable Development Goals. Air pollution is closely linked with climate change, sharing the same causes and many of the same solutions. By addressing air pollution in their climate strategies, businesses can reduce their environmental and health impacts simultaneously, while supporting the most disadvantaged communities, who typically bear the brunt of dirty air.
Is air pollution a risk to businesses?
Global experts, including business leaders, have identified pollution as a top 10 short- and long-term risk. Here’s why:
- Poor air quality makes workers and their families ill, which increases absenteeism and reduces productivity. Every year, 1.2 billion work days are lost globally because of health-related employee absences. This could rise to 3.8 billion days by 2060.
- Research shows that air pollution reduces productivity in many different settings, including a farm in California, a garment factory in India and call centres in China.
- Health damage from air pollution costs $6 trillion a year (equal to a 5% reduction in global GDP), due to health impacts, lost productivity and shorter lives.
- Air pollution is closely linked to climate change and harms vital ecosystems, causing global crop yield losses of 3-16%, according to UNECE.
- Poor air quality also impacts talent recruitment: cities with severe air pollution are viewed as less desirable places to work.
- Decreased consumer spending with a marked effect on people’s willingness to venture outside. An analysis of credit card transaction data in Spain revealed that for every 10% increase in particulate matter pollution, consumers spent between EUR 20-30 million less per day.
How is regulation affecting businesses?
Regulation of business air pollutant emissions, including within corporate climate frameworks, is getting stronger around the world. Some companies have faced litigation and fines for non-compliance. By improving air quality where they operate, companies can reduce risk and strengthen workforce performance through better health outcomes. This can help reduce employee absenteeism, attract talent and improve retention.
Clean air is not a seasonal luxury, it’s a strategic necessity for businesses. A city that breathes better works better, attracting talent, boosting productivity, and reducing operational risks. Companies must move beyond compliance and treat air quality as a core business metric.
Vaishali Nigam Sinha, Co-founder of ReNew
How should businesses measure and reduce emissions?
1. Measure pollutants
A good first step is for businesses to assess their air pollutant emissions, usually alongside their greenhouse gas emissions.
Tools and guides to help businesses measure their emissions
- Integrated Guide for Business Greenhouse Gas and Air Pollution Emission Assessment (CCAC): An exhaustive guide for all businesses and geographies on quantifying air pollutant emissions and integrating these with greenhouse gas measurement systems.
- Air Pollutant Emissions Methodology for the Logistics Sector (GLEC Framework, Smart Freight Centre): A guide for logistics and freight companies to quantify their emissions.
- Air Pollution Footprint Partnership Tool (Ricardo UK): A calculator for UK businesses to estimate their emissions.
- Corporate air emissions reporting guide (Confederation of Indian Industry): A guide for Indian businesses to quantify air pollutant emissions.
Clean Air Fund has also been working with reporting frameworks and standard setters to make sure air pollution frameworks are strong and credible. These include the Global Reporting Initiative (GRI), Business Responsibility and Sustainability Reporting (BRSR), and the Sustainability Accounting Standards Board (SASB).
2. Actions to reduce pollution
The solutions that improve air quality are investable, scalable, and commercially viable. Businesses can reduce their air pollutant emissions by e.g.:
- Electrifying transport fleets
- Installing solar panels on company buildings
- Implementing energy-saving initiatives
- Remote working
- Reducing business travel
- Subsidising seasonal public transport cards for employees.
The worst impacts of air pollution are usually felt close to where it is emitted. That means action in a company’s own location can make a real difference for employees and local residents. The Camden Breathing Better Charter shows how companies, philanthropy and public institutions can work together to improve air quality in one place. Find out more here.
The health of people and the environment are closely intertwined. As a healthcare company with a long history of innovating to prevent and change the course of respiratory disease, we’re committed to reducing our environmental impact and joining forces with other organisations to make local impact at-scale. Having recently returned to Camden with our new Global HQ, we look forward to positively impacting the health and wellbeing of those who live and work in the borough.
Neale Belson, Senior Vice-President and General Manager for the UK, GSK
3. Champion action across the private sector
Businesses can champion clean air through key institutions and networks, helping to raise the standard of corporate action across the private sector.
By engaging their networks and sharing what they learn, businesses can help the wider private sector overcome barriers to reducing air pollutant emissions. They can join communities such as the UN Global Compact (global), India CEO Forum on Clean Air (India), Long-Term Investors in People’s Health (investors) and Business Unity South Africa (South Africa) to show their commitment to clean air and learn from other companies taking action.
What can investors do?
Investors can engage companies on air pollution, raise awareness of the risks and encourage businesses to include air quality in their sustainability plans. Investors can also use their stewardship role to hold companies accountable on air pollution. Learn more about the investor case for action on air pollution and the financial risk. We work with businesses in our key geographies, and globally through the Alliance for Clean Air, which is delivered in partnership with the World Economic Forum.
How we can support
Clean Air Fund and our partners support the private sector to reduce its impact on air quality by:
- Helping businesses understand air pollution, its impacts on performance and the business case for clean air measures.
- Ensuring businesses have the tools and guidance to quantify their air pollutant emissions and reduce their impact.
- Working to strengthen air quality standards within regulatory frameworks and standards.
- Share examples of best practice from leading businesses on improving air quality which others can learn from.
- Building communities of practice to share learnings and solutions.
