Listed companies’ GHG emissions targets are consistent with 3.2°C of global warming by 2100, according to a study undertaken by CDP and the World Wide Fund for Nature (WWF).
The two organisations assessed climate targets set by companies included in the Bloomberg World Large & Mid Cap Index, which were aggregated and translated into an implied warming outcome. The findings were published during London Climate Action Week.
They found that direct emissions targets are misaligned with the 1.5°C goal established in the 2015 Paris Agreement, while Scope 3 emissions are the largest source of climate impact and the area where corporate action is particularly insufficient.
Amir Sokolowski, CDP director of climate, stated: “This analysis shows that despite growing climate disclosure and target-setting, corporate ambition remains far from a Paris-aligned pathway.”
WWF UK head of business advocacy Toni Pearce commented: “Raising ambition in line with the science will allow business to prosper in a world increasingly dominated by […] climate challenges and to take advantage of the opportunities of the net zero transition.”
“This must include businesses aligning their targets with the Paris Climate Agreement and delivering on them,” she continued. “While governments must create the policy direction and incentives that will drive the transition faster across the private sector.”