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

  • Powerful EU plan is driving climate reporting performance but COP26 pivotal for setting out system to speed up meaningful emissions reductions
  • Almost all Euro STOXX fifty companies offer minimal-carbon goods and products and services even though over 50 percent have set science-based mostly targets which contain Scope three emissions
  • Schneider Electric powered, Kering and SAP SE named as major sustainability reporting performers

London, Uk, Oct twenty five, 2021

EcoAct, an Atos company, has right now produced The Local weather Reporting Functionality of the Euro STOXX fifty, FTSE one hundred and DOW thirty. The report reveals that even though the index performs persistently across a selection of sustainability actions, the need to have to set extended-expression emissions reductions targets stays with considerably less than 20% of companies exhibiting sturdy programs to get to net zero. If Europe is to provide on its Fit for fifty five ambitions – a fifty five% emissions reduction by 2030 – the world commitments and coordinated actions taken as consequence of COP26 will be pivotal in giving a framework to enterprises to attain extended-expression emissions reductions aligned to one.5°C.

The report, which incorporates a leader board position the major 20 companies for environmental sustainability disclosure, observed that fifty eight% of the Euro STOXX fifty have science-based mostly targets in spot that are aligned with one.5⁰C or effectively down below 2⁰C. This compares favourably to the DOW thirty and FTSE one hundred where only 57% and forty five% of enterprises have science-based mostly targets (SBTs) aligned to the same amount of ambition. The report also observed that seventy eight% of the index reached Scope one & 2 emissions reductions to the same typical, a little bit in advance of its friends in the DOW thirty and FTSE one hundred (which reached 70% and seventy two% respectively). However, the report also cautions this year’s emissions reductions are possible to be artificially higher thanks to the effect of COVID-19.

Commenting on the findings, Stuart Lemmon, Running Director, Northern Europe, EcoAct mentioned:Our very first report of the climate reporting performance of the Euro STOXX fifty tells a persuasive story of reliable achievement across the index. Europe rewards from a robust legislative landscape and ambitious targets which have no question spurred companies to be extremely engaged and clear on climate problems.

“However, to attain net zero by 2050, enterprises need to have sturdy, extended-expression programs. Our assessment exhibits the hugely constructive rewards that frameworks these kinds of as the SBTi can have on accelerating climate change action in this regard. As these kinds of, COP26 has a crucial purpose to play in making an environment – as a result of driving ambitious laws, frameworks, ideal practice and criteria – that will assist enterprises to system and attain reliable decarbonisation to get to Europe’s net zero concentrate on.”

In comparison to the DOW thirty and FTSE one hundred, the report observed that numerous much more European enterprises have fully commited to tackling their supply chain emissions, with forty eight% of the index possessing set SBTs for Scope three. By natural means, the report also observed that much more Euro STOXX fifty companies reached Scope three emissions reductions in line with a one.5°C state of affairs (34% vs . seventeen% for equally the DOW thirty and FTSE one hundred).

Not like findings for the FTSE one hundred and DOW thirty, no single sector outperformed a different. As an alternative, the index done persistently previously mentioned its friends across all assessment parts from ambition, measurement and reporting to system, action and achievement. In complete, 10 companies from the Euro STOXX fifty reached a spot on the global major 20 leader board such as Schneider Electric powered, Kering, SAP SE, Philips and L’Oréal.

Globally, major performers across all indices (Euro STOXX fifty, FTSE one hundred and DOW thirty) this calendar year were being Microsoft, Apple, Landsec, Vodafone and Schneider Electric powered. 65% of companies across all indices have now set an SBT, a 26% boost on 2020 (with the addition of Euro STOXX in 2021). On top of that, numerous much more of these SBTs are in line with a effectively down below 2⁰C or one.5⁰C state of affairs – from 20% very last calendar year to 51% this calendar year.

Up to virtually eighty% across all indices with numerous business sectors such as insurance policy, oil and gas and client autos and pieces demonstrated alignment with the Taskforce on Local weather-associated Money Disclosures (TCFD) suggestions – the largest calendar year-on-calendar year boost due to the fact they were being released. Produced by The Money Balance Board, the TCFD suggestions supply a crystal clear illustration of how governments globally can come collectively to generate a framework that achieves a frequent climate intention.

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Notes to editors
This calendar year, the scoring methodology has been revised to contain not only climate reporting performance (with a aim on thoroughness and transparency) but also measurable climate action and achievement. Businesses are now scored in response to 28 concerns for a complete of 61 factors masking four subject matter parts:

  • Emissions measurement & Reporting
  • Ambition & Emission reduction targets
  • Method, Governance & Motion system
  • Achievements

The most the latest disclosures are scored employing once-a-year built-in and company sustainability reports, and any added back links from company internet websites, such as sustainability micro-sites and weblogs. This calendar year, statements made by companies as section of their 2020 response to the CDP questionnaires have also been regarded to fill in any gaps, primarily all around carbon footprint assessment and reduction achievements.

Other key world findings:

Net-zero ambitions vs . reductions
There has been an over forty% enhancement in the selection of companies fully commited to net zero from very last calendar year with sixty six% of companies in the FTSE one hundred, sixty four% in the Euro STOXX fifty and sixty three% in the DOW thirty committing to net zero. For the DOW thirty, this doubles the rate of dedication in comparison to very last calendar year. However, across all indices only 19% of companies disclose a extended-expression emissions reduction concentrate on and only 2% of companies disclose targets for sequestration of residual emissions.

seventy four% of companies noted a reduction in their Scope one & 2 emissions that is in line with limiting world heating to one.5°C – a consequence the report notes is possible to be artificially higher thanks to COVID-19. It was also famous nonetheless that only 22% of companies lessened their Scope three emissions in line with the same pathway. The change in world emissions from this calendar year to the next could be a defining minute for targets to be achieved, all huge companies will need to have to be proactive in attaining sustained emissions reductions and decarbonising their enterprise models.

Not sufficient is remaining finished to tackle value chain emissions. Across all indices, 65% of companies have set a Scope one & 2 SBT even though only 39% of companies have set a single for their Scope three emissions. Of the 178 companies scored this calendar year, only AstraZeneca, Vodafone, Apple, and SAP SE have successfully set one.5⁰C aligned Scope one, 2 and three SBTi validated SBTs.

Offsetting
The percentage of companies offsetting their residual carbon emissions has elevated from twenty five% to 36% general. Organisations ought to lower emissions in alignment to a one.5°C state of affairs, but they also ought to choose accountability for unavoidable residual emissions. Offsetting is an crucial system to ensure that organisations are using urgent action on any emissions they are still doing work to lower.

About EcoAct

EcoAct, an Atos company due to the fact Oct 2020, is an global sustainability consultancy and project developer that supports companies and organisations by giving the most efficient and holistic options to proficiently meet the issues of climate change. Started in France in 2006 by Thierry Fornas and Gérald Maradan, EcoAct has places of work in seven countries and three continents all around the world: Paris, Lyon, Barcelona, London, New York, Montreal, Munich and Embu in Kenya.

With a workforce of much more than one hundred sixty professionals in decarbonisation system, EcoAct enables professionals and their teams to rework their enterprise model and lower their carbon emissions even though driving business performance. EcoAct’s core function is to notify and lead sustainable methods that generate value and profit its consumers as effectively as the climate, and the environment. EcoAct is a CDP Gold Spouse, a founding member of ICROA, a strategic partner in the implementation of the Gold Conventional for the World-wide Targets and reports to the UN World-wide Compact.

Push Call:

Isabel Fernández de la Fuente: [email protected], M: +44 () 7485 365 321