In its first progress report released this month, Climate Action 100+ shows that despite significant progress being achieved, far more needs to be done by the world’s largest corporate greenhouse gas (GHG) emitters in tackling climate change.
Climate Action 100+ brings together more than 370 global investors with over $35 trillion in assets under management, in seeking to ensure some of the world’s largest companies including; Nestle, BHP Billiton, Centrica and Saint-Gobain, take the necessary action on climate change.
Across the 161 focus companies, analysis in the report demonstrates:
> 70% have set long-term emissions reduction targets;
> 9% have emissions targets that are in line with (or go beyond) the minimum goal of the Paris Agreement to keep the rise in global temperature to below 2°C, highlighting a crucial ambition gap to be addressed;
> 8% of companies have policies in place to ensure their lobbying activity is aligned with necessary action on climate change (leaving scope for obstructive, negative or evasive lobbying);
> 40% undertake and disclose climate scenario analysis, and 30% of companies have formally supported recommendations of the Task Force on Climate-related Financial Disclosures (TCFD);
> 77% have defined board level responsibility for climate change.
Investor engagement through Climate Action 100+ is playing a major role in changing corporate attitudes on climate change with some very significant commitments being made from companies. However given the size of their collective GHG emissions as ‘systemically important emitters’, a more ambitious response by the Climate Action 100+ focus companies is pivotal – on both a company and global level – in ensuring the transition is realised in the timeframe required.
Stephanie Maier, Director of Responsible Investment at HSBC Global Asset Management and Climate Action 100+ Steering Committee Member, commented:
“We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions, with others increasingly following suit. Given the urgency of the situation, the role of investor engagement is critical in ensuring we build on this momentum. We have much more to do before business is on track to meet the goals of the Paris Agreement.”
The full report can be found here: Climate Action 100+ 2019 Progress Report
To speak to a member of the team, get in touch:
Call: 01252 560 379