A fifth of UK companies with 2030 emissions targets are not on course to meet them, according to a study from non-governmental organisation Carbon Disclosure Project (CDP) and consultants Bain & Company.
In the UK Climate Report released on Thursday, CDP and Bain said the number of companies lagging was likely even greater as their figure does not include companies which did not disclose to CDP or which have yet to set an emissions-reduction target.
The slow pace comes as Britain, the Unites States and the EU look to mandate emissions disclosure, as rules are set to take effect over the next few years.
“Out of the approximately 1,450 UK-headquartered companies that disclosed through CDP on climate (including approximately 91% of FTSE 100 companies), only around 70% of those disclosed actual Scope 1 and 2 emissions data. Only around 50% disclosed Scope 3 emissions data, of which approximately one-third use no primary data to calculate emissions,” the CDP said.
Companies are not always underpinning their decarbonisation commitments with robust, quantified, and costed transition plans. This results in under-delivery of targets, according to the study, as it found that 26% failed to meet their targets for 2021.
According to the organisation, companies need to embed decarbonisation into their business plan and link it to financial value.
“Specifically, effective decarbonisers: a) develop a transition plan with a wide range of initiatives, b) deploy incentives to bring people along, and c) incorporate decarbonisation into their core value proposition and link it to financial value,” the CDP explained.
What makes an effective decarboniser?
Businesses with an effective decarbonisation plan recognise that growth and sustainability are inextricably linked.
These businesses will fare better once new regulations take effect.
How can businesses get started?
We help businesses integrate sustainability strategies into their existing plans. Our industry-leading technology guides businesses into reducing their emissions without deterring current operations.
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