More than half of companies still have no carbon emission reduction target: CDP

More than half (53 per cent) of 859 major companies disclosing environmental performance data to the Carbon Disclosure Project (CDP) still have no overall carbon emissions reduction target.Almost half (47 per cent) do now reward senior management for managing climate-related risks; and one in four link management incentives to climate-related targets.

The latest CDP report shows that 75 per cent of the companies submitting data believe that climate transition risks, such as the impact of climate change-related legislation, will have a meaningful impact on their business. But almost nine out of ten companies have also identified business opportunities linked to climate change, including increased demand for goods produced by carbon-light processes.

CDP has distributed its annual awards to companies and investment funds making the most impressive progress in carbon reduction and environmental sustainability strategies, based on disclosed data. CDP’s A-list of the best performing firms include L’Oreal, Unilever, Bayer, Telefonica, ING Group and Carrefour.

But it is also clear that all of these companies still have a long way to go in reducing emissions: the 859 companies that disclosed data to CDP this year have combined carbon emissions of 2.3 billion tonnes of CO2, more than the total emissions produced by the whole of the UK, France and Germany put together. The companies disclosing data to CDP are also a self-selecting group, suggesting that a majority of all companies still have no meaningful emissions reduction target.

CDP also presented awards to the ten European investment funds with the best climate performance as measured by Climetrics. Seven of the ten most climate-friendly investment funds in Europe are in France, a result due in part to the country’s strong regulatory policies obliging investors to report on climate risk management.

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