LONDON--(BUSINESS WIRE)--The world’s largest annual tracker of how the largest, most environmentally-impactful companies are responding to climate change is published today by CDP (the non-profit global environmental disclosure platform). Picking up the pace, the second edition in the annual Tracking corporate action on climate change series, finds more leading companies are embedding low-carbon goals into their long-term business plans, and that are increasingly aligning with the carbon emission reductions scientists say are needed to prevent dangerous climate change.
Key findings from today’s analysis of 1,073 responding companies include:
- More companies are mapping out their low-carbon future - 89% have emissions reductions targets this year (up from 85% in 2016); 68% have set emissions reductions targets to at least 2020 (up from 55%).
- Narrowing the emissions gap – achieving their current targets would take the companies 31% of the way to being consistent with keeping global warming below 2 degrees; a 6% improvement from the 25% reported in 2016.
- Growth in targets aligned with the latest climate science - 14% of companies have committed to the Science Based Targets initiative, setting emissions reduction targets in line with the level of decarbonization required to keep global temperature increase below 2 degrees. These include AkzoNobel, EDP and Unilever. An additional 30% – 317 companies – anticipate setting a science-based target within two years.
- Low carbon transition is driving innovation – 36% of companies offer low carbon products such as electric vehicles and zero-energy buildings (up from 30% in 2016).
- 98% of companies now have Board- or senior management-level responsibility for climate change
Paul Simpson, CEO of CDP, said: “Two years ago, the Paris Agreement fired the gun in the race to a low-carbon economy. This year, the recommendations from the Task Force on Climate-Related Financial Disclosures accelerated the pace. We can already see corporate winners and losers emerging. Best practice, from the scaling of solar power to the construction of zero-energy buildings, with innovation in processes, products and philosophies is emerging; and is increasingly led from the boardroom.”
In a separate analysis, CDP ranked 159 companies (out of a total of over 3,300) as A-grade for their approaches to climate change, water and deforestation including Colgate Palmolive Company, Diageo Plc., J Sainsbury Plc., Sky Plc. and Sony Corporation. Unilever and L'Oréal lead the way with A’s across all three areas.