World’s largest companies need to double the pace of CO2 reduction to avoid dangerous climate change

A new report from the Carbon Disclosure Project – The Carbon Chasm – shows that based on current reduction targets, the world’s largest companies will reach the IPCC’s scientifically-recommended level of greenhouse gas cuts 39 years too late to avoid dangerous climate change. Most large companies now measure their carbon footprint and 73% of Global 100 companies have set some form of reduction target, but the majority of targets are not in line with the science.

The research report, which was conducted by CDP based on data reported to us in 2008, and supported by BT, also revealed that of those emissions reduction targets with a deadline, a majority (84%) are set up to and including 2012. This correlates with the final year of the Kyoto Protocol and suggests that businesses may be waiting to hear outcomes of the UN Conference of the Parties meeting in Copenhagen this December (COP-15) before they set longer term reduction goals.

The report highlights some recommendations to close the current carbon chasm:

• Every company should set a CO2-e reduction target.
  
  
• Targets must have clear baseline and target years.
  
  
• Governments need to agree clear medium and long-term reduction goals in Copenhagen to provide a framework for business to set required targets.
  
  
• Company targets should reflect the IPCC scientific recommendations and whilst absolute targets are preferred for clarity, aggressive intensity targets can also deliver.
  
  
• Businesses cite various motivations for setting emissions reductions targets including identifying inefficiencies in corporate operations to achieve cost savings and stimulate innovation; minimising GHG associated risks whilst preparing for potential future regulation; and achieving competitive advantage. Undoubtedly, this is a time of huge opportunity for businesses to gain competitive advantage by reducing their own impact on the climate and benefit from associated cost savings, as well as sparking major innovation around the production of new, lower carbon products and services.