LONDON, United Kingdom — The world’s 100 largest companies may be making progress on lowering their greenhouse gas emissions, but they are significantly falling short of the recommended reductions scientists warn are needed to avoid the worst impacts of climate change.
This won’t likely change unless government leadership and action take place, according to “The Carbon Chasm,” a report produced by the nonprofit Carbon Disclosure Project (CDP) and funded by telecom BT.
Based on the responses to the CDP, the world’s biggest companies wouldn’t meet the recommended emissions cuts until 2089 -- 39 years after 2050, when scientists say emissions need to be at least 80 percent lower.
“Most large companies now measure their carbon footprint and many have set carbon reduction targets,” Chris Tuppen, chief sustainability officer of BT, said in a statement. “But how many of those targets are actually in line with the required reductions to prevent dangerous climate change? The research highlights a significant gap between what is needed from the corporate sector and what’s currently promised.”
According to the analysis, the world’s 100 largest companies are on track to reduce emissions by 1.9 percent per annum. Reducing emissions by 80 percent by 2050 will require an annual reduction of 3.9 percent.
Nearly three-quarters of the world’s 100 largest companies have set goals of reducing greenhouse gas emissions, including 71 percent of U.S. companies. The reasons for doing so vary: emissions used as a proxy for efficiency, risk minimization, shareholder and external pressure, and competitive advantage.
Some high-impact sectors, such as the energy industry, which includes oil and gas, are significantly lagging other sectors. For example, just 54 percent of energy companies have emissions reduction goals in place, compared to 100 percent of companies representing the carbon-intensive utilities sector. This puts pressure on other sectors to reduce more emissions to meet the scientifically recommended reduction goals.
A majority of companies have set an absolute emissions reduction goal, rather than a normalized goal, such as carbon intensity, which can make comparison difficult. Nearly 30 percent of companies in the Global 100 use intensity targets, all of which relate to the size of the business, such as sales volume or production.
The majority of companies use 2012 as the last target year, with just 16 percent looking beyond. Only five companies have targets to 2020.
The report emphasizes the need to harmonize the setting of targets with scientific recommendations.
“More consistency is needed across the whole of industry such that the laggards catch up with the leaders in undertaking major emissions cuts over the short, medium and long term,” the report said, “in order to permanently close the Carbon Chasm.”
Image CC licensed by Flickr user pfala.