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As per a study, fewer than 20% of the world’s 1,000 largest companies have now set the target and almost 40% have no net zero commitment at all
November 16, 2023 | Staff Reporter | UK | Facilities Management
Global emissions, which are continuing to rise by 1.5% a year, must be cut by 7% annually until 2030 to limit global warming to 1.5°C, according to new analysis. The findings are presented in ‘The State of Climate Action: Major Course Correction Needed from +1.5% to −7% Annual Emissions’, published this month by the World Economic Forum, Alliance of CEO Climate Leaders, and Boston Consulting Group (BCG).
The Alliance of CEO Climate Leaders comprises more than 125 CEOs across 25 countries and 12 industries. The publication “underscores the worrying state" of the planet's climate and "the urgency of taking immediate substantial action to combat global warming”. The report found that only a third of global emissions are covered by national net zero targets for 2050 and, on the corporate side, progress in recent years “has been substantial”.
The total number of companies with commitments to 1.5°C science-based targets has increased more than six-fold between the end of 2020 and August 2023. However, fewer than 20% of the world’s 1,000 largest companies have now set this type of target; and almost 40% have no net zero commitment at all. Most green technologies required to achieve net zero exist already, but those that are cost-competitive or soon will be, only cover around 55% of global emissions.
Deep decarbonisation technologies such as hydrogen, along with carbon capture, usage, and storage (CCUS), as well as direct air capture, are still in early stages of development and scaling too slowly. To catch up, innovation and industrial scaling need to accelerate at unprecedented levels. A gap in climate funding of more than $2 trillion is a key issue, with critical gaps in early technologies and infrastructure – bioenergy, hydrogen, sustainable aviation fuel, CCUS, and battery storage – collectively receiving only around 2% of 2022 global mitigation funds. The gap is also twice as large in lower-income countries as in higher-income ones, with the former subject to lower capital availability and higher perceived risks.
Rich Lesser, global chair of Boston Consulting Group and chief advisor to the World Economic Forum’s Alliance of CEO Climate Leaders, said, “The findings in this report are a wake-up call to the world, reaffirming that the status quo is no longer an option. The Alliance recognises the pivotal role we play in driving transformational change. Governments, companies, and other stakeholders must act in lock step to meet our ambitious climate goals. It is our collective responsibility to build a more resilient and greener future for generations to come, and we are unwavering in our mission to make that a reality.”
Near-term Priorities
Some near-term priorities are put forward in the report to keep the 1.5°C limit within reach. These actions include:
