Energy Efficiency, GHG Emissions - March 4, 2022
CDP Reports Only One-Third Companies Have Climate Plans
Companies are off track on setting climate transition plans despite the deluge of net zero pledges agreed around COP26, according to CDP’s latest analysis of over 13,000 companies.
Among companies that disclosed plans through CDP, only one-third or 64% of the global market capital ($64 trillion are developing a low-carbon transition plan. In addition, only 1% (135) of companies reported through the total 24 key indicators associated with a credible climate transition plan.
The report also showed that only 6% (741) of all reporting organizations, disclosed claims of having a net zero target, no companies disclosing from G20 countries had more than 4% disclosure against the 24 key indicators in the CDP questionnaire that related to climate transition plans, only 1% (135) of companies disclosed against all 24 indicators and only
0.3% of organizations in the transportation and apparel industries disclosed on the 24 key indicators of a climate transition plan.
“Currently one-third of organizations disclosing through CDP reported developing a low carbon transition plan,” said Nicolette Bartlett, Chief Impact Officer, CDP, said. “This does not match the appetite from investors, customers and employees and governments who are pushing for more scrutiny since COP26. Critically, these plans also need to be assessed to ensure they meet stakeholder expectations and are actually delivering against climate needs.”
As the AGM season starts, it is vital companies commit to taking action on their pledges and develop clear and credible climate transition plans, underpinned by science-based targets.
Transportation and apparel were the worst performing sectors, with less than 0.3% disclosing against the 24 key indicators which legitimize a climate transition plan.
Other industries facing the most scrutiny, including financial services, power and fossil fuels – have the highest rates of climate transition plan disclosure, even though only 5% of organizations in each of these sectors reported against the 24 key indicators.
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