Less than 20% of Euro STOXX 50 demonstrate robust plans to meet net zero
- Powerful EU coverage is driving climate reporting functionality but COP26 pivotal for setting out system to accelerate significant emissions reductions
- Almost all Euro STOXX fifty companies provide low-carbon products and services when above half have set science-dependent targets which include Scope three emissions
- Schneider Electric, Kering and SAP SE named as major sustainability reporting performers
London, United kingdom, Oct twenty five, 2021
EcoAct, an Atos corporation, has right now produced The Climate Reporting General performance of the Euro STOXX fifty, FTSE 100 and DOW thirty. The report reveals that when the index performs continuously throughout a quantity of sustainability steps, the need to have to set lengthy-term emissions reductions targets remains with considerably less than twenty% of companies exhibiting robust programs to achieve web zero. If Europe is to supply upon its Fit for 55 ambitions – a 55% emissions reduction by 2030 – the world-wide commitments and coordinated actions taken as outcome of COP26 will be pivotal in offering a framework to businesses to reach lengthy-term emissions reductions aligned to 1.5°C.
The report, which consists of a chief board rating the major twenty companies for environmental sustainability disclosure, found that 58% of the Euro STOXX fifty have science-dependent targets in place that are aligned with 1.5⁰C or effectively below 2⁰C. This compares favourably to the DOW thirty and FTSE 100 in which only 57% and forty five% of businesses have science-dependent targets (SBTs) aligned to the similar degree of ambition. The report also found that 78% of the index obtained Scope 1 & two emissions reductions to the similar normal, marginally ahead of its friends in the DOW thirty and FTSE 100 (which obtained 70% and 72% respectively). However, the report also cautions this year’s emissions reductions are most likely to be artificially higher because of to the affect of COVID-19.
Commenting on the conclusions, Stuart Lemmon, Running Director, Northern Europe, EcoAct mentioned: “Our very first report of the climate reporting functionality of the Euro STOXX fifty tells a compelling tale of constant accomplishment throughout the index. Europe gains from a powerful legislative landscape and formidable targets which have no question spurred companies to be extremely engaged and clear on climate issues.
“However, to reach web zero by 2050, businesses need to have robust, lengthy-term programs. Our evaluation shows the hugely optimistic gains that frameworks these types of as the SBTi can have on accelerating climate adjust motion in this regard. As these types of, COP26 has a critical purpose to perform in creating an ecosystem – by way of driving formidable laws, frameworks, greatest follow and benchmarks – that will guidance businesses to system and reach constant decarbonisation to achieve Europe’s web zero goal.”
In comparison to the DOW thirty and FTSE 100, the report found that numerous additional European businesses have dedicated to tackling their provide chain emissions, with forty eight% of the index obtaining set SBTs for Scope three. Obviously, the report also found that additional Euro STOXX fifty companies obtained Scope three emissions reductions in line with a 1.5°C state of affairs (34% versus seventeen% for each the DOW thirty and FTSE 100).
Unlike conclusions for the FTSE 100 and DOW thirty, no single sector outperformed one more. Rather, the index executed continuously earlier mentioned its friends throughout all evaluation locations from ambition, measurement and reporting to system, motion and accomplishment. In whole, 10 companies from the Euro STOXX fifty obtained a place on the worldwide major twenty chief board including Schneider Electric, Kering, SAP SE, Philips and L’Oréal.
Globally, major performers throughout all indices (Euro STOXX fifty, FTSE 100 and DOW thirty) this 12 months were Microsoft, Apple, Landsec, Vodafone and Schneider Electric. sixty five% of companies throughout all indices have now set an SBT, a 26% boost on 2020 (with the addition of Euro STOXX in 2021). Additionally, numerous additional of these SBTs are in line with a effectively below 2⁰C or 1.5⁰C state of affairs – from twenty% last 12 months to 51% this 12 months.
Up to practically eighty% throughout all indices with numerous business sectors including coverage, oil and gas and buyer motor vehicles and elements shown alignment with the Taskforce on Climate-associated Monetary Disclosures (TCFD) suggestions – the major 12 months-on-12 months boost since they were launched. Made by The Monetary Stability Board, the TCFD suggestions deliver a apparent instance of how governments globally can arrive alongside one another to develop a framework that achieves a prevalent climate purpose.
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Notes to editors
This 12 months, the scoring methodology has been revised to include not only climate reporting functionality (with a emphasis on thoroughness and transparency) but also measurable climate motion and accomplishment. Businesses are now scored in response to 28 issues for a whole of 61 points covering four subject locations:
- Emissions measurement & Reporting
- Ambition & Emission reduction targets
- Tactic, Governance & Action system
- Achievements
The most the latest disclosures are scored working with annual integrated and corporate sustainability studies, and any additional one-way links from corporation internet websites, including sustainability micro-web sites and weblogs. This 12 months, statements made by companies as element of their 2020 response to the CDP questionnaires have also been regarded as to fill in any gaps, especially around carbon footprint evaluation and reduction achievements.
Other key world-wide conclusions:
Net-zero ambitions versus reductions
There has been an above 40% enhancement in the quantity of companies dedicated to web zero from last 12 months with sixty six% of companies in the FTSE 100, sixty four% in the Euro STOXX fifty and sixty three% in the DOW thirty committing to web zero. For the DOW thirty, this doubles the rate of commitment in comparison to last 12 months. However, throughout all indices only 19% of companies disclose a lengthy-term emissions reduction goal and only two% of companies disclose targets for sequestration of residual emissions.
74% of companies claimed a reduction in their Scope 1 & two emissions that is in line with limiting world-wide heating to 1.5°C – a outcome the report notes is most likely to be artificially higher because of to COVID-19. It was also pointed out however that only 22% of companies lessened their Scope three emissions in line with the similar pathway. The adjust in world-wide
emissions from this 12 months to the future could be a defining minute for targets to be met, all substantial companies will need to have to be proactive in acquiring sustained emissions reductions and decarbonising their small business designs.
Not more than enough is staying carried out to tackle worth chain emissions. Across all indices, sixty five% of companies have set a Scope 1 & two SBT when only 39% of companies have set just one for their Scope three emissions. Of the 178 companies scored this 12 months, only AstraZeneca, Vodafone, Apple, and SAP SE have correctly set 1.5⁰C aligned Scope 1, two and three SBTi validated SBTs.
Offsetting
The percentage of companies offsetting their residual carbon emissions has increased from twenty five% to 36% over-all. Organisations ought to reduce emissions in alignment to a 1.5°C state of affairs, but they also ought to take obligation for unavoidable residual emissions. Offsetting is an significant mechanism to be certain that organisations are getting urgent motion on any emissions they are continue to performing to reduce.
About EcoAct
EcoAct, an Atos corporation since Oct 2020, is an worldwide sustainability consultancy and challenge developer that supports companies and organisations by offering the most successful and holistic answers to correctly fulfill the challenges of climate adjust. Launched in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has workplaces in 7 nations and three continents around the environment: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.
With a group of additional than one hundred sixty specialists in decarbonisation system, EcoAct enables managers and their teams to rework their small business design and reduce their carbon emissions when driving business functionality. EcoAct’s core reason is to inform and guide sustainable strategies that develop worth and reward its clientele as effectively as the climate, and the ecosystem. EcoAct is a CDP Gold Partner, a founding member of ICROA, a strategic husband or wife in the implementation of the Gold Standard for the International Aims and studies to the UN International Compact.
Push Get in touch with:
Isabel Fernández de la Fuente: [email protected], M: +44 () 7485 365 321