Wednesday 10 July 2019

Almost half of largest-emitting firms still not ‘adequately considering climate’

Almost half of largest-emitting firms still not ‘adequately considering climate’

Almost half of the world's 274 highest-emitting publicly-listed companies do not adequately consider climate risk in operational decision-making.

That's according to a new study published by the Transition Pathway Initiative (TPI) and carried out by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics.

The report also shows only 12.5% of companies are reducing carbon emissions at the rate required to keep global warming below 2°C, as outlined in the Paris Agreement - the author's of the report urges the world's environmentally-intensive businesses to take action and says investors must adopt “an emergency footing” to get companies moving faster on green issues.

In addition to these shortcomings, it notes a quarter of companies still do not disclose their carbon emissions, 84% of companies do not disclose an internal carbon price and 86% are yet to undertake and disclose climate scenario planning.

Even among companies assessed for the second year in a row, only 27% improved how they integrate climate change into their business decisions.

Adam Matthews, Co-Chair of TPI and Director of Ethics and Engagement at Church of England Pensions Board said: “A failure to grasp the seriousness of the warning from this TPI report and to recognise the slow pace of corporate progress, will directly undermine our ability as pension funds to manage the financial risks within our portfolio for our beneficiaries.

“The clock is ticking on irreversible climate change. The fact only one-in-eight of the highest-emitting firms are responding at anywhere near the pace required is an urgent challenge to investors. Investors themselves need to adopt an emergency footing otherwise the window to secure the change we need will be gone.”

Written by

Bruna Pinhoni

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