- Strong EU plan is driving local climate reporting efficiency but COP26 pivotal for environment out approach to accelerate significant emissions reductions
- Virtually all Euro STOXX fifty providers offer you small-carbon solutions and expert services whilst about 50 % have set science-primarily based targets which incorporate Scope three emissions
- Schneider Electric powered, Kering and SAP SE named as top sustainability reporting performers
London, British isles, October 25, 2021
EcoAct, an Atos company, has right now produced The Local climate Reporting Effectiveness of the Euro STOXX fifty, FTSE a hundred and DOW thirty. The report reveals that whilst the index performs continuously throughout a range of sustainability measures, the will need to set prolonged-time period emissions reductions targets stays with a lot less than 20% of providers exhibiting strong plans to arrive at web zero. If Europe is to provide upon its Healthy for fifty five ambitions – a fifty five% emissions reduction by 2030 – the world-wide commitments and coordinated steps taken as final result of COP26 will be pivotal in offering a framework to corporations to reach prolonged-time period emissions reductions aligned to one.5°C.
The report, which incorporates a leader board ranking the top 20 providers for environmental sustainability disclosure, identified that 58% of the Euro STOXX fifty have science-primarily based targets in position that are aligned with one.5⁰C or well down below 2⁰C. This compares favourably to the DOW thirty and FTSE a hundred in which only fifty seven% and forty five% of corporations have science-primarily based targets (SBTs) aligned to the similar stage of ambition. The report also identified that seventy eight% of the index obtained Scope one & 2 emissions reductions to the similar common, slightly in advance of its peers in the DOW thirty and FTSE a hundred (which obtained 70% and 72% respectively). Nevertheless, the report also cautions this year’s emissions reductions are probably to be artificially substantial because of to the impact of COVID-19.
Commenting on the results, Stuart Lemmon, Handling Director, Northern Europe, EcoAct mentioned: “Our 1st report of the local climate reporting efficiency of the Euro STOXX fifty tells a persuasive tale of consistent achievement throughout the index. Europe advantages from a sturdy legislative landscape and formidable targets which have no doubt spurred providers to be hugely engaged and transparent on local climate problems.
“However, to reach web zero by 2050, corporations will need strong, prolonged-time period plans. Our analysis shows the hugely favourable advantages that frameworks these as the SBTi can have on accelerating local climate modify action in this regard. As these, COP26 has a crucial role to perform in developing an atmosphere – via driving formidable legislation, frameworks, finest practice and standards – that will assist corporations to approach and reach consistent decarbonisation to arrive at Europe’s web zero target.”
In comparison to the DOW thirty and FTSE a hundred, the report identified that quite a few extra European corporations have fully commited to tackling their supply chain emissions, with forty eight% of the index owning set SBTs for Scope three. In a natural way, the report also identified that extra Euro STOXX fifty providers obtained Scope three emissions reductions in line with a one.5°C circumstance (34% versus 17% for each the DOW thirty and FTSE a hundred).
Unlike results for the FTSE a hundred and DOW thirty, no solitary sector outperformed a further. As an alternative, the index carried out continuously previously mentioned its peers throughout all assessment regions from ambition, measurement and reporting to approach, action and achievement. In whole, 10 providers from the Euro STOXX fifty obtained a position on the international top 20 leader board such as Schneider Electric powered, Kering, SAP SE, Philips and L’Oréal.
Globally, top performers throughout all indices (Euro STOXX fifty, FTSE a hundred and DOW thirty) this year ended up Microsoft, Apple, Landsec, Vodafone and Schneider Electric powered. sixty five% of providers throughout all indices have now set an SBT, a 26% boost on 2020 (with the addition of Euro STOXX in 2021). On top of that, quite a few extra of these SBTs are in line with a well down below 2⁰C or one.5⁰C circumstance – from 20% previous year to fifty one% this year.
Up to approximately 80% throughout all indices with quite a few industrial sectors such as insurance policies, oil and gasoline and customer automobiles and areas shown alignment with the Taskforce on Local climate-related Money Disclosures (TCFD) tips – the most significant year-on-year boost given that they ended up released. Created by The Money Steadiness Board, the TCFD tips deliver a distinct case in point of how governments globally can come alongside one another to create a framework that achieves a widespread local climate purpose.
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Notes to editors
This year, the scoring methodology has been revised to incorporate not only local climate reporting efficiency (with a focus on thoroughness and transparency) but also measurable local climate action and achievement. Providers are now scored in response to 28 inquiries for a whole of sixty one factors covering four subject regions:
- Emissions measurement & Reporting
- Ambition & Emission reduction targets
- Method, Governance & Action approach
- Achievements
The most current disclosures are scored utilizing yearly built-in and corporate sustainability stories, and any additional hyperlinks from company internet websites, such as sustainability micro-internet sites and blogs. This year, statements made by providers as section of their 2020 response to the CDP questionnaires have also been viewed as to fill in any gaps, in particular close to carbon footprint assessment and reduction achievements.
Other vital world-wide results:
Web-zero ambitions versus reductions
There has been an about forty% enhancement in the range of providers fully commited to web zero from previous year with 66% of providers in the FTSE a hundred, sixty four% in the Euro STOXX fifty and 63% in the DOW thirty committing to web zero. For the DOW thirty, this doubles the level of dedication in comparison to previous year. Nevertheless, throughout all indices only 19% of providers disclose a prolonged-time period emissions reduction target and only 2% of providers disclose targets for sequestration of residual emissions.
74% of providers documented a reduction in their Scope one & 2 emissions that is in line with limiting world-wide heating to one.5°C – a final result the report notes is probably to be artificially substantial because of to COVID-19. It was also noted even so that only 22% of providers minimized their Scope three emissions in line with the similar pathway. The modify in world-wide emissions from this year to the subsequent could be a defining moment for targets to be satisfied, all big providers will will need to be proactive in acquiring sustained emissions reductions and decarbonising their business enterprise designs.
Not sufficient is becoming performed to tackle worth chain emissions. Across all indices, sixty five% of providers have set a Scope one & 2 SBT whilst only 39% of providers have set a person for their Scope three emissions. Of the 178 providers scored this year, only AstraZeneca, Vodafone, Apple, and SAP SE have properly set one.5⁰C aligned Scope one, 2 and three SBTi validated SBTs.
Offsetting
The proportion of providers offsetting their residual carbon emissions has enhanced from 25% to 36% general. Organisations have to lower emissions in alignment to a one.5°C circumstance, but they also have to get accountability for unavoidable residual emissions. Offsetting is an crucial mechanism to make sure that organisations are taking urgent action on any emissions they are however functioning to lower.
About EcoAct
EcoAct, an Atos company given that October 2020, is an international sustainability consultancy and task developer that supports providers and organisations by offering the most economical and holistic alternatives to successfully satisfy the difficulties of local climate modify. Established in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has workplaces in seven nations and three continents close to the planet: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.
With a crew of extra than a hundred and sixty authorities in decarbonisation approach, EcoAct permits administrators and their groups to remodel their business enterprise design and lower their carbon emissions whilst driving industrial efficiency. EcoAct’s core goal is to notify and lead sustainable tactics that create worth and benefit its shoppers as well as the local climate, and the atmosphere. EcoAct is a CDP Gold Companion, a founding member of ICROA, a strategic companion in the implementation of the Gold Conventional for the International Ambitions and stories to the UN International Compact.
Push Contact:
Isabel Fernández de la Fuente: [email protected], M: +forty four () 7485 365 321
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