World leaders, the press, and innumerable critics gave President Trump a hard time for dropping out of the Paris Climate Agreement. Now it turns out many corporations that signed onto the agreement aren’t even close to their promised emission cuts. Where are the critics now?
The world’s biggest carbon-emitting companies are far from aligning with the Paris Climate Agreement, a report by the leading climate-focused investor group showed on Monday.
Climate Action 100+, whose 575 members manage $54 trillion in assets, was set up in 2017 to engage with the companies responsible for the bulk of planet-heating emissions to encourage them to cut them and strengthen climate disclosures.
If added together and treated as a country, the companies – including oil majors like Exxon, Saudi Aramco and BP as well as Unilever – would be the third biggest emitter behind the United States and China, the group said.
Releasing its first ‘Climate Action 100+ Net-Zero Company Benchmark’, the group uses a traffic-light system to show how each of the 159 companies is currently performing on a variety of indicators and metrics.
None of the companies have fully disclosed how they will achieve their goals to become a net-zero business by 2050 or sooner, the assessment shows, including setting short- and medium-term targets.
Irked by the slow pace of change at some companies, leading investors have thrown their weight behind shareholder resolutions in the current season for annual general meetings demanding better information on company plans.
Although 83 of the companies assessed have announced an aim of achieving net-zero by 2050, around half of these commitments do not encompass the full scope of their emissions.
While 107 companies had set medium-term targets, only 20 met all the assessment criteria; of the 75 to set short-term targets, only eight did so.
Only six companies had committed to aligning their capital expenditure with their long-term reduction targets, and none have so far pledged to align them with the Paris Agreement goal of limiting the global temperature rise to 1.5 degrees Celsius.