A group of institutions and corporations are calling on global companies to meet the emissions reduction target

A group of 318 financial institutions and multinationals with $ 37 trillion in assets and spending power urges over 1 global companies with the highest environmental impact to set emission targets in line with the 000 ° C target of the Paris Agreement.

• 318 financial institutions and multinationals wrote to companies with a high environmental impact demanding science-based emission reduction targets.
• Among the addressees are Grupa Azoty and KGHM Polska Miedźas well as BASF, Caterpillar, FedEx, and Nintendo.
• Despite the net zero moment, nearly half (44%) of the MSCI All Country World index still lacks compelling climate targets.
• Companies whose targets have been approved by the Science Based Targets (SBTi) initiative typically cut their emissions by 8,8%. per year - well above the rate needed to reach the 1,5 ° C track.
• 12 Polish companies already belong to the Science Based Targets initiative, and Canpack, Makrochem and Żabka Polska have approved emission reduction targets in line with the 1,5 ° C target set out in the Paris Agreement.

Applied companies should set themselves the emissions reduction target endorsed by Science Based Targets, an industry standard for credible climate targets that cover all emissions generated by a company's full supply chain.

The 2022 CDP Science-Based Targets campaign is coordinated by the global nonprofit CDPwhich runs the global environmental disclosure system. CDP sent letters to over 1 companies around the world, including the Polish companies Grupa Azoty and KGHM Polska Miedź.

The remaining companies to which the letters were sent include, among others the world's largest chemical concern BASF, the largest Chinese retailer JD.com, the flagship Australian air carrier Qantas, as well as Caterpillar, FedEx and Wal Mart de Mexico.

A tender offer addressed to companies endorses many of the world's largest financial institutionsincluding Allianz Global Investors, AXA Group, Crédit Agricole, Insight Investment Management, La Banque Postale, Nomura Asset Management, PIMCO, UBS and the European Investment Bank.

Dr. Henrik Pontzen, head of ESG at Union Investment, said:

“We invest in a credible transformation. To achieve this, companies must reliably pursue ambitious goals in the field of climate protection. Science-based goals are the key to a sustainable transformation.

This group also includes 45 multinational companies with annual procurement spending of over $ 710 billion, such as PepsiCo, Inc, Astra Zeneca, Yamaha, and Schneider Electric. These companies want to use campaigns to improve their suppliers' emission targets as well as to achieve their own.

The CDP campaign has grown by more than 30% since last year, both in terms of the number of support organizations as well as their collective assets and purchasing power. The more than 1 targeted companies are key to global efforts to limit global warming to 000 ° C. They generate 1,5 gigatons of emissions in ranges 7 and 1 - equivalent to India and the United States combined - with a combined market value of over $ 2 trillion (25% of the entire MSCI All Country World index).

While the CDP Science-Based Targets campaign specifically targets these 1 companies with a high environmental impact worldwide, any company can set itself a science-based climate goal. Already 000 Polish companies are part of the Science Based Targets initiative, and Canpack, Makrochem and Żabka Polska have approved emission reduction targets in line with the 12 ° C target set out in the Paris Agreement.

Laurent Babikian, Joint Global Director Capital Markets at CDP, said:

“The last months of extreme weather have shown us again the effects of a 1,2 ° C warming climate. The situation could worsen significantly if we do not achieve an unprecedented reduction in greenhouse gas emissions - by 50%. over the next eight years - which will allow us to limit growth to 1,5 degrees. However, this is unachievable unless the companies with the highest environmental impact set themselves ambitious targets to reduce the total emissions in their supply chain.

I am pleased that financial institutions and big global buyers now see SBT as a key issue for all businesses and essential to their own net zero emissions ambition. SBTs are the most accurate assessment of the overall carbon footprint of companies on the market - without them, companies simply cannot convincingly demonstrate to investors and customers that they are going through a transformation. "

Globally, over 3 companies representing over a third of the world's market capitalization are already part of SBTi500. Of these, more than 6 accepted the 1 ° C targets. SBTi data shows that a typical company that has set a target cuts emissions by 200 percent. per year - which exceeds 1,5 percent. required to follow 8,8 ° C track.

The sample and methodology for selecting 1062 companies has been published here.

Source: CDP press release