A new report from Climate Action 100+ states that more effort is needed by the world’s biggest companies if the fight against climate change is ever going to make an impact.
Climate Action 100+ brings together more than 370 global investors with over $35 trillion in assets under management, in seeking to ensure some of the world’s largest companies take necessary action on climate change. The 161 “focus companies” engaged through the initiative are collectively responsible for more than two-thirds of global industrial GHG emissions and represent a combined market capitalization in excess of $8 trillion.
Supported by Climate Action 100+ investor engagement, a range of net zero emission commitments are now in place. Progress has been seen across a range of industries, many of which are among the most challenging to decarbonize. Examples of focus companies making net zero commitments over just the past seven months include; HeidelbergCement, Duke Energy, Nestle, Daimler, VW, Thyssenkrupp, ArcelorMittal, BHP Billiton, Centrica and Saint-Gobain, among others.
Despite these examples, analysis shows a significant step change is still required from the majority of focus companies in addressing climate change as a strategic business risk.
Analysis in the report demonstrates across the 161 focus companies:
This and other data in the report is provided by climate research partners and provides an initial baseline of progress against the core goals of the initiative across relevant sectors.
Given the size of their collective GHG emissions, a more ambitious response by the Climate Action 100+ focus companies is pivotal – on both a company and global level – in ensuring the transition is realized in the timeframe required.
Issued by the Climate Action 100+ steering committee, the report also contextualizes the contribution investor engagement has made to progress achieved to date. Highlights and broader examples of impact include:
Numerous case study examples included in the report highlight the significance of shareholder engagement as a key factor in contributing to progress by companies, in line with goals of the initiative.
Publication of the progress report follows a key United Nation’s climate conference in New York last week, in which progress towards a net zero emissions future was further strengthened. Responding to the science, 65 countries and the EU have now announced efforts to achieve net zero emissions by 2050 or sooner, effectively meaning economy wide decarbonization.