Corporate Climate Goals: Urgent Need for Enhanced Measures

Current Challenges in Corporate Climate Goals

Despite the rise in companies setting science-based climate targets, many corporate climate goals lack the necessary measures to ensure success. This is especially evident in the deficiency of interim targets and the slow pace of emissions reductions among top companies.

Progress Towards Net Zero

A study by Accenture highlighted that only 18% of the G2000 companies are on track to reach net zero emissions by 2050. The rest are either increasing their emissions or reducing them insufficiently.

Emissions Reduction Challenges

Among companies that disclose emissions data, half are still increasing their emissions, while one-third are reducing them but not rapidly enough. This gap between target-setting and actual performance is concerning.

The Role of Decarbonization Levers

Accenture identified 20 decarbonization levers needed for full value-chain decarbonization. Popular methods include using renewable energy, enhancing energy efficiency, and decarbonizing fleets. However, the least adopted yet most crucial levers remain underutilized.

Multiple Strategies for Significant Impact

Companies utilizing fewer than 10 decarbonization levers typically grow their emissions. Those adopting 10 or more levers are heading towards decarbonization, underscoring the importance of multiple strategies for substantial greenhouse gas reductions.

Lack of Interim Targets

While long-term climate goals are increasingly common, many leading companies lack interim targets. Without these intermediate milestones, tracking and achieving net zero by 2050 is challenging.

The Importance of Carbon Intelligence

Accenture emphasizes developing 'carbon intelligence' to manage, improve, and generate value by integrating carbon data into core business decision-making. This strategy helps companies become more sustainable and achieve their climate goals.

Conclusion

Even though science-based targets for climate action are on the rise, progress towards net zero by 2050 remains insufficient. To close this gap, companies need a comprehensive decarbonization approach, multiple strategies, and interim targets to stay on track for their ambitious climate goals.