23 Mar Sober report on big business climate targets: fast time for more action
Although many companies have ambitious climate goals, there is still a long way to go before these goals are actually met. It is therefore time for action, notes the Group Climate Action 100+ (CA100), which consists of a lot of pension funds and investors.
CA100 first examined the climate plans and the current state of affairs at companies. The focus was on 159 large companies, all of which make an important contribution to global CO2 emissions. On the basis of ten goals, the investment group looked at the state of the companies.
CO2 neutral, but no capital
What turns out? The vast majority of companies do not yet fully meet the criteria of CA100, and therefore fall short in the field of climate policy. For example, 76 companies have not formulated an ambition to be CO2 neutral by 2050. 95 companies have no strategy to “decarbonize,” stop emitting greenhouse gases. Nor does almost any company add butter to the fish. Only six of the 159 companies set aside capital to enable a CO2-free future.
CA100 concludes that there are great ambitions and plans, but that companies are not yet taking concrete steps. That needs to change quickly, also to meet the medium-term goals (until 2030). There are a few reasons why many companies score poorly.
The most important thing is that they do not take responsibility for the emissions that arise from the use of the product, the so-called Scope 3. Think of the CO2 that is released when burning fossil fuels; companies that produce the fuel, such as Shell or BP, do not want to include that CO2 in their climate goals. For CA100, this is reason to regard their climate goals as ‘not meeting the criteria’.
54 trillion euros
Climate Action 100+ is an association of investors. Together, these 570 investors have a portfolio of 54 trillion euros. They want to work with companies in which they invest, in order to achieve a climate-friendly future faster. A check of the companies that receive money from the investors is part of this.