- Robust EU plan is driving local weather reporting performance but COP26 pivotal for environment out method to speed up significant emissions reductions
- Virtually all Euro STOXX 50 companies offer you reduced-carbon solutions and providers even though about fifty percent have established science-centered targets which incorporate Scope 3 emissions
- Schneider Electric powered, Kering and SAP SE named as major sustainability reporting performers
London, British isles, October twenty five, 2021
EcoAct, an Atos firm, has right now introduced The Weather Reporting Efficiency of the Euro STOXX 50, FTSE 100 and DOW 30. The report reveals that even though the index performs continuously across a range of sustainability steps, the need to have to established lengthy-term emissions reductions targets continues to be with less than twenty% of companies exhibiting robust options to arrive at internet zero. If Europe is to provide upon its Suit for 55 ambitions – a 55% emissions reduction by 2030 – the world wide commitments and coordinated actions taken as outcome of COP26 will be pivotal in furnishing a framework to businesses to achieve lengthy-term emissions reductions aligned to one.5°C.
The report, which includes a chief board ranking the major twenty companies for environmental sustainability disclosure, uncovered that 58% of the Euro STOXX 50 have science-centered targets in spot that are aligned with one.5⁰C or well below 2⁰C. This compares favourably to the DOW 30 and FTSE 100 wherever only fifty seven% and 45% of businesses have science-centered targets (SBTs) aligned to the similar degree of ambition. The report also uncovered that seventy eight% of the index reached Scope one & 2 emissions reductions to the similar common, a bit forward of its peers in the DOW 30 and FTSE 100 (which reached 70% and seventy two% respectively). Having said that, the report also cautions this year’s emissions reductions are very likely to be artificially significant owing to the impression of COVID-19.
Commenting on the results, Stuart Lemmon, Controlling Director, Northern Europe, EcoAct explained: “Our initial report of the local weather reporting performance of the Euro STOXX 50 tells a powerful story of regular accomplishment across the index. Europe rewards from a solid legislative landscape and bold targets which have no question spurred companies to be highly engaged and transparent on local weather troubles.
“However, to achieve internet zero by 2050, businesses need to have robust, lengthy-term options. Our evaluation demonstrates the vastly optimistic rewards that frameworks these kinds of as the SBTi can have on accelerating local weather improve motion in this regard. As these kinds of, COP26 has a essential part to engage in in generating an atmosphere – through driving bold legislation, frameworks, most effective practice and benchmarks – that will assist businesses to strategy and achieve regular decarbonisation to arrive at Europe’s internet zero goal.”
In comparison to the DOW 30 and FTSE 100, the report uncovered that quite a few more European businesses have dedicated to tackling their source chain emissions, with forty eight% of the index having established SBTs for Scope 3. Obviously, the report also uncovered that more Euro STOXX 50 companies reached Scope 3 emissions reductions in line with a one.5°C state of affairs (34% vs . seventeen% for equally the DOW 30 and FTSE 100).
Unlike results for the FTSE 100 and DOW 30, no single sector outperformed one more. As an alternative, the index executed continuously above its peers across all evaluation locations from ambition, measurement and reporting to method, motion and accomplishment. In whole, ten companies from the Euro STOXX 50 reached a spot on the international major twenty chief board which includes Schneider Electric powered, Kering, SAP SE, Philips and L’Oréal.
Globally, major performers across all indices (Euro STOXX 50, FTSE 100 and DOW 30) this yr were Microsoft, Apple, Landsec, Vodafone and Schneider Electric powered. 65% of companies across all indices have now established an SBT, a 26% boost on 2020 (with the addition of Euro STOXX in 2021). Also, quite a few more of these SBTs are in line with a well below 2⁰C or one.5⁰C state of affairs – from twenty% previous yr to 51% this yr.
Up to just about eighty% across all indices with quite a few commercial sectors which includes insurance policy, oil and gasoline and shopper cars and pieces shown alignment with the Taskforce on Weather-linked Financial Disclosures (TCFD) suggestions – the most significant yr-on-yr boost because they were released. Formulated by The Financial Balance Board, the TCFD suggestions present a distinct case in point of how governments globally can arrive alongside one another to generate a framework that achieves a widespread local weather objective.
Notes to editors
This yr, the scoring methodology has been revised to incorporate not only local weather reporting performance (with a emphasis on thoroughness and transparency) but also measurable local weather motion and accomplishment. Corporations are now scored in reaction to 28 inquiries for a whole of 61 factors covering four matter locations:
- Emissions measurement & Reporting
- Ambition & Emission reduction targets
- Approach, Governance & Action strategy
The most the latest disclosures are scored applying once-a-year built-in and company sustainability stories, and any added hyperlinks from firm internet sites, which includes sustainability micro-websites and blogs. This yr, statements created by companies as aspect of their 2020 reaction to the CDP questionnaires have also been regarded as to fill in any gaps, specifically all over carbon footprint evaluation and reduction achievements.
Other key world wide results:
Web-zero ambitions vs . reductions
There has been an about forty% enhancement in the range of companies dedicated to internet zero from previous yr with 66% of companies in the FTSE 100, 64% in the Euro STOXX 50 and 63% in the DOW 30 committing to internet zero. For the DOW 30, this doubles the amount of motivation in comparison to previous yr. Having said that, across all indices only 19% of companies disclose a lengthy-term emissions reduction goal and only 2% of companies disclose targets for sequestration of residual emissions.
74% of companies claimed a reduction in their Scope one & 2 emissions that is in line with limiting world wide heating to one.5°C – a outcome the report notes is very likely to be artificially significant owing to COVID-19. It was also mentioned however that only 22% of companies lessened their Scope 3 emissions in line with the similar pathway. The improve in world wide emissions from this yr to the following could be a defining minute for targets to be met, all significant companies will need to have to be proactive in achieving sustained emissions reductions and decarbonising their organization types.
Not adequate is becoming carried out to tackle benefit chain emissions. Throughout all indices, 65% of companies have established a Scope one & 2 SBT even though only 39% of companies have established a single for their Scope 3 emissions. Of the 178 companies scored this yr, only AstraZeneca, Vodafone, Apple, and SAP SE have properly established one.5⁰C aligned Scope one, 2 and 3 SBTi validated SBTs.
The percentage of companies offsetting their residual carbon emissions has amplified from twenty five% to 36% in general. Organisations should cut down emissions in alignment to a one.5°C state of affairs, but they also should just take accountability for unavoidable residual emissions. Offsetting is an important system to guarantee that organisations are having urgent motion on any emissions they are nevertheless doing the job to cut down.
EcoAct, an Atos firm because October 2020, is an international sustainability consultancy and task developer that supports companies and organisations by furnishing the most productive and holistic options to proficiently fulfill the problems of local weather improve. Started in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has offices in 7 international locations and 3 continents all over the globe: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.
With a workforce of more than one hundred sixty authorities in decarbonisation method, EcoAct allows professionals and their teams to remodel their organization model and cut down their carbon emissions even though driving commercial performance. EcoAct’s main reason is to tell and direct sustainable methods that generate benefit and reward its customers as well as the local weather, and the atmosphere. EcoAct is a CDP Gold Spouse, a founding member of ICROA, a strategic associate in the implementation of the Gold Normal for the World wide Plans and stories to the UN World wide Compact.
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Isabel Fernández de la Fuente: [email protected], M: +44 () 7485 365 321