Only a minority of FTSE 100 constituents have implemented plans that will allow them to reach their net-zero targets, a new study reveals.
Just 19% of the UK’s largest companies are on track to contribute meaningfully to climate change, while 66 firms in total have set sustainability goals.
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It’s still an improvement, as only 45 had done so last year, according to sustainability consultancy EcoAct, part of France’s Atos.
London’s listed groups are still more committed than the Euro STOXX 50 and DOW 30 where 64% and 63% of businesses have revealed net-zero pledges, respectively.
Yet less than a fifth of businesses across all indices have long-term reduction targets to achieve this commitment, and only 2% have strategies in place that will achieve emissions reductions in line with 1.5?C.
Up to nearly 80% across all indices, with many commercial sectors including insurance, oil and gas and consumer vehicles and parts, demonstrated alignment with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations – the biggest year-on-year increase since they were launched.
Developed by The Financial Stability Board, the TCFD recommendations provide a clear example of how governments globally can come together to create a framework that achieves a common climate goal.
“Businesses have a vital role to play in tackling climate change but need to be led by more ambitious long-term policy and regulation, underpinned by realistic frameworks to work within, to achieve net-zero. The outcomes of COP26 will be pivotal for turning intent into action,” said Stuart Lemmon, managing director for Northern Europe at EcoAct.
“Our analysis shows that when businesses have a clear framework to follow, the uptake on climate change action is vastly accelerated. This decade represents our very last chance to implement the climate policies and strategies that will see us achieve net-zero. We no longer have time to rely on a minority of leading climate change actors. All governments, businesses and society at large must do everything they can to drive rapid and meaningful change.”