According to a recent evaluation, a majority of European companies have no comprehensible plans on how to achieve climate targets. This is the result of an analysis by the Carbon Disclosure Project (CDP) based in London, which systematically records and evaluates climate targets and data from companies.
According to this, around half (49 percent) of European companies now have climate protection plans that are based on the international Paris climate target of a maximum global warming of 1.5 degrees. However, less than five percent of companies can demonstrate how they intend to achieve and implement them. The organization defines the latter in such a way that a company can prove in at least two-thirds of the key areas - such as reducing emissions or organizing supply chains - that serious measures are being taken for the transformation.
For the evaluation, CDP worked together with the management consultancy Oliver Wyman and evaluated the information from companies that represent around three quarters of the European stock markets.
"Very small part has so far submitted all the data"
"Every company that has an impact on the environment needs clear goals - but also clear plans and evidence that they are implementing them," said CDP boss Maxfield Weiss, according to the report. According to EU regulations, companies would soon have to disclose how they want to transform their business in line with the 1.5 degree target. "This report shows that only a very small proportion of less than five percent have so far submitted all the data required for the assessment."
According to the report, nine out of ten companies are making efforts to reduce greenhouse gas emissions. However, there is a gap between what is being done and what it would take to achieve the goals. So far, more than half have not taken their own supply chains into account.
Since most banks are now making sure that their portfolios comply with climate targets, the experts believe it could become more difficult for companies to obtain financing in the future if they do not pursue their climate targets more consistently.