Less than 20% of Euro STOXX 50 demonstrate robust plans to meet net zero
- Strong EU coverage is driving local weather reporting performance but COP26 pivotal for environment out method to accelerate meaningful emissions reductions
- Approximately all Euro STOXX fifty providers provide very low-carbon solutions and solutions even though around 50 percent have set science-dependent targets which contain Scope 3 emissions
- Schneider Electrical, Kering and SAP SE named as best sustainability reporting performers
London, Uk, October twenty five, 2021
EcoAct, an Atos enterprise, has today produced The Climate Reporting Efficiency of the Euro STOXX fifty, FTSE 100 and DOW thirty. The report reveals that even though the index performs consistently across a number of sustainability measures, the want to set long-term emissions reductions targets continues to be with much less than 20% of providers exhibiting robust options to access net zero. If Europe is to supply on its Healthy for 55 ambitions – a 55% emissions reduction by 2030 – the world commitments and coordinated steps taken as end result of COP26 will be pivotal in providing a framework to companies to reach long-term emissions reductions aligned to 1.5°C.
The report, which contains a leader board rating the best 20 providers for environmental sustainability disclosure, found that fifty eight% of the Euro STOXX fifty have science-dependent targets in location that are aligned with 1.5⁰C or nicely underneath 2⁰C. This compares favourably to the DOW thirty and FTSE 100 where by only 57% and 45% of companies have science-dependent targets (SBTs) aligned to the exact same amount of ambition. The report also found that 78% of the index obtained Scope 1 & two emissions reductions to the exact same normal, a little ahead of its friends in the DOW thirty and FTSE 100 (which obtained 70% and seventy two% respectively). Even so, the report also cautions this year’s emissions reductions are likely to be artificially higher due to the effects of COVID-19.
Commenting on the findings, Stuart Lemmon, Taking care of Director, Northern Europe, EcoAct reported: “Our to start with report of the local weather reporting performance of the Euro STOXX fifty tells a persuasive tale of reliable achievement across the index. Europe rewards from a solid legislative landscape and ambitious targets which have no question spurred providers to be hugely engaged and clear on local weather issues.
“However, to reach net zero by 2050, companies want robust, long-term options. Our evaluation demonstrates the hugely beneficial rewards that frameworks this kind of as the SBTi can have on accelerating local weather transform motion in this regard. As this kind of, COP26 has a essential job to play in creating an environment – by way of driving ambitious legislation, frameworks, very best exercise and benchmarks – that will aid companies to system and reach reliable decarbonisation to access Europe’s net zero focus on.”
In comparison to the DOW thirty and FTSE 100, the report found that lots of far more European companies have dedicated to tackling their provide chain emissions, with 48% of the index having set SBTs for Scope 3. Obviously, the report also found that far more Euro STOXX fifty providers obtained Scope 3 emissions reductions in line with a 1.5°C circumstance (34% as opposed to 17% for the two the DOW thirty and FTSE 100).
Unlike findings for the FTSE 100 and DOW thirty, no single sector outperformed one more. As an alternative, the index done consistently higher than its friends across all assessment areas from ambition, measurement and reporting to method, motion and achievement. In overall, 10 providers from the Euro STOXX fifty obtained a location on the worldwide best 20 leader board which includes Schneider Electrical, Kering, SAP SE, Philips and L’Oréal.
Globally, best performers across all indices (Euro STOXX fifty, FTSE 100 and DOW thirty) this calendar year were being Microsoft, Apple, Landsec, Vodafone and Schneider Electrical. sixty five% of providers across all indices have now set an SBT, a 26% increase on 2020 (with the addition of Euro STOXX in 2021). Also, lots of far more of these SBTs are in line with a nicely underneath 2⁰C or 1.5⁰C circumstance – from 20% previous calendar year to fifty one% this calendar year.
Up to practically eighty% across all indices with lots of commercial sectors which includes insurance plan, oil and gasoline and purchaser cars and pieces shown alignment with the Taskforce on Climate-associated Money Disclosures (TCFD) tips – the biggest calendar year-on-calendar year increase since they were being released. Designed by The Money Balance Board, the TCFD tips supply a distinct illustration of how governments globally can occur together to create a framework that achieves a prevalent local weather goal.
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Notes to editors
This calendar year, the scoring methodology has been revised to contain not only local weather reporting performance (with a target on thoroughness and transparency) but also measurable local weather motion and achievement. Businesses are now scored in reaction to 28 issues for a overall of 61 factors covering 4 subject matter areas:
- Emissions measurement & Reporting
- Ambition & Emission reduction targets
- System, Governance & Motion system
- Achievements
The most current disclosures are scored utilizing yearly built-in and corporate sustainability stories, and any additional hyperlinks from enterprise sites, which includes sustainability micro-web pages and blogs. This calendar year, statements designed by providers as component of their 2020 reaction to the CDP questionnaires have also been regarded as to fill in any gaps, specifically all-around carbon footprint assessment and reduction achievements.
Other critical world findings:
Internet-zero ambitions as opposed to reductions
There has been an around 40% enhancement in the number of providers dedicated to net zero from previous calendar year with sixty six% of providers in the FTSE 100, 64% in the Euro STOXX fifty and 63% in the DOW thirty committing to net zero. For the DOW thirty, this doubles the level of determination in comparison to previous calendar year. Even so, across all indices only 19% of providers disclose a long-term emissions reduction focus on and only two% of providers disclose targets for sequestration of residual emissions.
74% of providers documented a reduction in their Scope 1 & two emissions that is in line with restricting world heating to 1.5°C – a end result the report notes is likely to be artificially higher due to COVID-19. It was also noted however that only 22% of providers diminished their Scope 3 emissions in line with the exact same pathway. The transform in world emissions from this calendar year
to the future could be a defining moment for targets to be satisfied, all huge providers will want to be proactive in attaining sustained emissions reductions and decarbonising their business enterprise models.
Not adequate is becoming completed to tackle benefit chain emissions. Across all indices, sixty five% of providers have set a Scope 1 & two SBT even though only 39% of providers have set one particular for their Scope 3 emissions. Of the 178 providers scored this calendar year, only AstraZeneca, Vodafone, Apple, and SAP SE have successfully set 1.5⁰C aligned Scope 1, two and 3 SBTi validated SBTs.
Offsetting
The proportion of providers offsetting their residual carbon emissions has enhanced from twenty five% to 36% total. Organisations ought to lower emissions in alignment to a 1.5°C circumstance, but they also ought to take duty for unavoidable residual emissions. Offsetting is an vital system to be certain that organisations are having urgent motion on any emissions they are nonetheless doing the job to lower.
About EcoAct
EcoAct, an Atos enterprise since October 2020, is an worldwide sustainability consultancy and challenge developer that supports providers and organisations by providing the most economical and holistic methods to successfully satisfy the problems of local weather transform. Launched in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has offices in seven nations around the world and 3 continents all-around the environment: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.
With a staff of far more than a hundred and sixty specialists in decarbonisation method, EcoAct permits managers and their groups to remodel their business enterprise model and lower their carbon emissions even though driving commercial performance. EcoAct’s core reason is to tell and lead sustainable strategies that create benefit and profit its clients as nicely as the local weather, and the environment. EcoAct is a CDP Gold Spouse, a founding member of ICROA, a strategic spouse in the implementation of the Gold Common for the Global Targets and stories to the UN Global Compact.
Push Make contact with:
Isabel Fernández de la Fuente: [email protected], M: +44 () 7485 365 321
