Seven Barriers to U.S. Business Leadership on Climate Policy and How to Break Them Down

This research paper by the World Resources Institute identifies seven organizational, intermediary, and contextual barriers that prevent large U.S. companies (specifically Fortune 500 firms) from advocating for science-based climate policy at the federal level. The author argues that voluntary corporate actions are insufficient to meet the 1.5°C pathway and that corporate climate leadership must include active policy advocacy to generate necessary political capital.

• The paper identifies seven specific barriers that hinder U.S. corporations from advocating for federal climate policy, categorized into Organization and Strategy, Intermediaries, and Policy Context. These include: 1) 'Org Chart' issues where sustainability teams lack empowerment from the CEO or board; 2) 'Competing Priorities' where climate is seen as 'not in our lane' compared to tax or trade policy; 3) a 'Knowledge Gap' regarding climate science and policy impacts; 4) 'Quarterly Reports' and shareholder primacy favoring short-term profit over long-term climate investment; 5) 'Trade Associations' that may prioritize fossil fuel-dependent industries; 6) 'Backlash' from stakeholders such as politicians, consumers, and employees; and 7) 'Political Winds', noting a lack of large-scale climate legislation prior to the 2020 election.
• Voluntary corporate actions, such as setting emissions targets through the Science-Based Targets initiative (SBTi) or committing to 100 percent renewable energy, are insufficient to shift the United States to a 1.5°C pathway. The document asserts that public policy is required because there are GHG emission sources outside of private industry and many corporate commitments depend on government action to be realized.
• C-suite leadership is identified as essential for overcoming advocacy barriers. These leaders are needed to ensure climate objectives are integrated across staff, engage stakeholders, and establish partnerships with peers and nongovernmental organizations (NGOs).
• The document notes that some private sector interests have historically obstructed climate policy through direct lobbying or indirect funding of think tanks, political advertising, and trade associations. It argues that science-based climate policies struggle to gain political capital without corporate support.

APA

World Resources Institute (n.d.). Seven Barriers to U.S. Business Leadership on Climate Policy and How to Break Them Down. https://www.wri.org/research/barriers-to-us-business-leadership-on-climate

Chicago

World Resources Institute. Seven Barriers to U.S. Business Leadership on Climate Policy and How to Break Them Down. n.d. https://www.wri.org/research/barriers-to-us-business-leadership-on-climate.

Wikipedia

{{cite report |author=World Resources Institute |title=Seven Barriers to U.S. Business Leadership on Climate Policy and How to Break Them Down |url=https://www.wri.org/research/barriers-to-us-business-leadership-on-climate |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendseven, author = {{World Resources Institute}}, title = {{Seven Barriers to U.S. Business Leadership on Climate Policy and How to Break Them Down}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/barriers-to-us-business-leadership-on-climate}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }