Commercial, GHG Emissions, Industrial, Utilities - September 17, 2019
BNEF reports 237 companies are on track for science-based emissions targets
Over 237 companies have validated their science-based targets, which when added amounts to 488 million metric tons of CO2, and are on track to meeting their emission reduction targets, a new report by BloomgbergNEF found.
BNEF announced Sept. 17 its report "Science-Based Targets: 2-Degree Carbon Goals for Companies". The companies examined in the study all had their emissions targets approved by the Science-Based Targets Initiative for being in line with a "well-below" 2 degrees C scenario as outlined in the Paris Agreement.
If all 237 companies from the study were successful in their targets, their scope 1 and scope 2 emissions would be lowered to 350MtCO2e by 2030. The list includes a variety of entities: utilities and producers of consumer staples, materials and industrials.
BNEF also reported that the necessary reduction in scope 1 and 2 emissions by 2030 will be the largest for utilities in order to meet its science-based targets. Included in this study were 11 companies like Enel and NRG Energy, which BNEF estimates will have an easier time in decarbonization due to the established trajectory toward renewables that is becoming more common in the industry.
Alternatively, commercial and industrial companies will have more of a challenge with decarbonization, BNEF estimates, because of the fundamental shift that would need to occur in how they conduct business in order to reduce scope 1 emissions, as well as the fact that it is harder to manage supply chain emissions, which is a large part of business for these companies.
"Science-based targets remain one of the most effective ways that companies can lead the transition to a low carbon economy," BNEF stated in the release of its report. "But as currently constructed they still exclude certain heavy emitting industries. Creating emissions reduction frameworks for the oil and gas, agriculture, banking and chemical industry will be essential for science-based targets to truly make an impact."