Friday 27 March 2020

‘More than 80% of businesses remain off track for a 2°C world’

The Transition Pathway Initiative (TPI) has found that more than 80% of businesses still remain off track for a 2°C world.

After assessing 238 energy, industrial and transport companies on their projected carbon performance, it found although the low carbon transition is well underway in some sectors, such as shipping, paper and electric utilities, others such as oil, gas and airlines are significantly behind in carbon performance.

It also suggests that 18% of companies have emissions trajectories in line with limiting climate change to 2°C – a slight improvement compared to 16% aligned with this benchmark last year.

Loretta Minghella, First Church Estates Commissioner, Church Commissioners for England, said: “TPI’s results show that four-in-five high-emitting companies remain wide of the mark in their climate performance and that will worry the markets.

"Most of the world’s largest investors have accepted climate change as a material financial risk, yet today’s results show companies are not responding with the ambition and pace required.

"These results raise a red flag for COP26 in November, when the aspirations set out in the Paris Agreement are due to be turned into tougher national commitments, and we can expect to see more capital flow away from those companies failing to align with a 2°C pathway.”

Faith Ward, Co-Chair of TPI and Chief Responsible Investment Officer at Brunel Pension Partnership, said: “The IEA has warned that, while carbon dioxide emissions will likely decline this year, in the medium term the coronavirus outbreak could slow down the low carbon transition, as green investments are put on hold by cash-strapped governments and businesses.

"It is therefore of deep concern that so few companies were on the right path before the virus struck."