Among the world’s largest companies there was no increase in 2030 commitments in the last year and 34% still remain without any climate commitments.
Climate Impact Partners, a leading global carbon finance organization, today released the fifth annual study assessing the climate commitments of Fortune Global 500 companies. The latest report reveals that in an era of global boiling, Fortune Global 500 corporate commitments are starting to stall. There was only a 3% increase in the number of companies with 2050 commitments and no increase in 2030 targets.
However, companies that reduced reported emissions year over year earned on average nearly $1bn more in profit than their Fortune Global 500 peers.
“Urgent ambition and action are vital from the top earning companies to harness the full power of the private sector in meeting our global goals,” said Sheri Hickok, CEO of Climate Impact Partners. “The lack of climate commitments from some of the world’s largest companies is concerning as we get closer to 2030. At this critical juncture, we need companies to lean in, not pull away. The good news is that we have found clear markers for the companies making the most positive impact on emissions today, serving as an example for others to follow.”
More companies are reporting emissions
More than 75% of the world’s largest companies are now reporting emissions and more than half of those companies are reporting some form of scope 3, which account for an estimated 90% of Fortune Global 500 emissions.
2030 targets are leading to emissions reductions
The operational emissions of companies with a 2030 or sooner target reduced by 7% over the last reporting year, compared to a 3% increase among companies without a 2030 target.
Unlock Chief Sustainability Officers’ potential
The report found that 43% of companies have a Chief Sustainability Officer or equivalent, leading to earlier climate targets. Companies with a CSO set carbon neutral and net zero targets, on average, seven and three years sooner respectively. While these companies have small reductions (0.2% over the last reporting year), companies without a CSO saw emissions increasing by 3% in the same period. This still relatively new role is expected to increasingly deliver greater impact.
To view the full report and methodology follow this link
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