Less than 20% of Euro STOXX 50 demonstrate robust plans to meet net zero

  • Sturdy EU coverage is driving local weather reporting functionality but COP26 pivotal for environment out technique to speed up meaningful emissions reductions
  • Nearly all Euro STOXX 50 companies present lower-carbon items and companies even though around fifty percent have set science-primarily based targets which include Scope three emissions
  • Schneider Electrical, Kering and SAP SE named as top sustainability reporting performers

London, United kingdom, October 25, 2021

EcoAct, an Atos organization, has now released The Climate Reporting General performance of the Euro STOXX 50, FTSE a hundred and DOW thirty. The report reveals that even though the index performs consistently throughout a number of sustainability steps, the want to set prolonged-phrase emissions reductions targets stays with considerably less than twenty% of companies exhibiting strong ideas to reach internet zero. If Europe is to supply on its In shape for 55 ambitions – a 55% emissions reduction by 2030 – the international commitments and coordinated actions taken as end result of COP26 will be pivotal in offering a framework to firms to achieve prolonged-phrase emissions reductions aligned to one.5°C.

The report, which contains a leader board ranking the top twenty companies for environmental sustainability disclosure, observed that fifty eight% of the Euro STOXX 50 have science-primarily based targets in place that are aligned with one.5⁰C or very well below 2⁰C. This compares favourably to the DOW thirty and FTSE a hundred in which only fifty seven% and forty five% of firms have science-primarily based targets (SBTs) aligned to the very same level of ambition. The report also observed that seventy eight% of the index attained Scope one & two emissions reductions to the very same normal, a bit ahead of its friends in the DOW thirty and FTSE a hundred (which attained 70% and 72% respectively). Having said that, the report also cautions this year’s emissions reductions are most likely to be artificially significant owing to the effect of COVID-19.

Commenting on the conclusions, Stuart Lemmon, Running Director, Northern Europe, EcoAct mentioned:Our initial report of the local weather reporting functionality of the Euro STOXX 50 tells a persuasive story of consistent accomplishment throughout the index. Europe added benefits from a solid legislative landscape and ambitious targets which have no doubt spurred companies to be highly engaged and transparent on local weather problems.

“However, to achieve internet zero by 2050, firms want strong, prolonged-phrase ideas. Our assessment shows the massively positive added benefits that frameworks such as the SBTi can have on accelerating local weather modify action in this regard. As such, COP26 has a crucial function to engage in in building an surroundings – via driving ambitious laws, frameworks, best observe and benchmarks – that will help firms to prepare and achieve consistent decarbonisation to reach Europe’s internet zero focus on.”

In comparison to the DOW thirty and FTSE a hundred, the report observed that numerous far more European firms have fully commited to tackling their provide chain emissions, with 48% of the index acquiring set SBTs for Scope three. Naturally, the report also observed that far more Euro STOXX 50 companies attained Scope three emissions reductions in line with a one.5°C state of affairs (34% versus 17% for equally the DOW thirty and FTSE a hundred).

Not like conclusions for the FTSE a hundred and DOW thirty, no solitary sector outperformed yet another. Instead, the index carried out consistently previously mentioned its friends throughout all assessment areas from ambition, measurement and reporting to technique, action and accomplishment. In overall, ten companies from the Euro STOXX 50 attained a place on the global top twenty leader board such as Schneider Electrical, Kering, SAP SE, Philips and L’Oréal.

Globally, top performers throughout all indices (Euro STOXX 50, FTSE a hundred and DOW thirty) this year were Microsoft, Apple, Landsec, Vodafone and Schneider Electrical. sixty five% of companies throughout all indices have now set an SBT, a 26% improve on 2020 (with the addition of Euro STOXX in 2021). On top of that, numerous far more of these SBTs are in line with a very well below 2⁰C or one.5⁰C state of affairs – from twenty% last year to 51% this year.

Up to virtually 80% throughout all indices with numerous industrial sectors such as insurance policies, oil and gasoline and customer autos and sections shown alignment with the Taskforce on Climate-related Economic Disclosures (TCFD) tips – the most important year-on-year improve since they were launched. Designed by The Economic Balance Board, the TCFD tips offer a crystal clear instance of how governments globally can occur alongside one another to create a framework that achieves a popular local weather aim.

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Notes to editors
This year, the scoring methodology has been revised to include not only local weather reporting functionality (with a concentrate on thoroughness and transparency) but also measurable local weather action and accomplishment. Organizations are now scored in reaction to 28 issues for a overall of 61 factors covering four topic areas:

  • Emissions measurement & Reporting
  • Ambition & Emission reduction targets
  • Approach, Governance & Action prepare
  • Achievements

The most modern disclosures are scored making use of once-a-year integrated and corporate sustainability reviews, and any further backlinks from organization sites, such as sustainability micro-web sites and blogs. This year, statements built by companies as section of their 2020 reaction to the CDP questionnaires have also been viewed as to fill in any gaps, specifically about carbon footprint assessment and reduction achievements.

Other critical international conclusions:

Net-zero ambitions versus reductions
There has been an around 40% advancement in the number of companies fully commited to internet zero from last year with sixty six% of companies in the FTSE a hundred, sixty four% in the Euro STOXX 50 and sixty three% in the DOW thirty committing to internet zero. For the DOW thirty, this doubles the level of commitment in comparison to last year. Having said that, throughout all indices only 19% of companies disclose a prolonged-phrase emissions reduction focus on and only two% of companies disclose targets for sequestration of residual emissions.

seventy four% of companies reported a reduction in their Scope one & two emissions that is in line with limiting international heating to one.5°C – a end result the report notes is most likely to be artificially significant owing to COVID-19. It was also noted however that only 22% of companies minimized their Scope three emissions in line with the very same pathway. The modify in international emissions from this year to the future could be a defining instant for targets to be achieved, all substantial companies will want to be proactive in acquiring sustained emissions reductions and decarbonising their business versions.

Not plenty of is getting completed to tackle worth chain emissions. Across all indices, sixty five% of companies have set a Scope one & two SBT even though only 39% of companies have set a single for their Scope three emissions. Of the 178 companies scored this year, only AstraZeneca, Vodafone, Apple, and SAP SE have correctly set one.5⁰C aligned Scope one, two and three SBTi validated SBTs.

Offsetting
The proportion of companies offsetting their residual carbon emissions has increased from 25% to 36% over-all. Organisations must lower emissions in alignment to a one.5°C state of affairs, but they also must take accountability for unavoidable residual emissions. Offsetting is an significant mechanism to make sure that organisations are having urgent action on any emissions they are even now operating to lower.

About EcoAct

EcoAct, an Atos organization since October 2020, is an global sustainability consultancy and project developer that supports companies and organisations by offering the most productive and holistic options to efficiently fulfill the challenges of local weather modify. Started in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has places of work in 7 international locations and three continents about the globe: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.

With a crew of far more than a hundred and sixty authorities in decarbonisation technique, EcoAct permits managers and their teams to rework their business model and lower their carbon emissions even though driving industrial functionality. EcoAct’s core reason is to advise and lead sustainable tactics that create worth and profit its clients as very well as the local weather, and the surroundings. EcoAct is a CDP Gold Lover, a founding member of ICROA, a strategic associate in the implementation of the Gold Common for the Global Ambitions and reviews to the UN Global Compact.

Push Make contact with:

Isabel Fernández de la Fuente: [email protected], M: +forty four () 7485 365 321