An audit of corporate decarbonisation ambition against low carbon futures.
Iain Weaver, Jesse F Abrams, Jack Oliver, Nikolaos Dimakis, Andrew Parry, Timothy M Lenton
Abstract
Open AccessAtmospheric greenhouse gas concentration has been steadily increasing since the 19th century, causing global warming. Despite efforts to reduce emissions, current projections anticipate a significant increase in global surface temperature by the end of the century, which may push us beyond a safe and just operating space. We must develop emissions pathways that consider renewable technology innovation, climate policy development and consumer behaviour change. In this manuscript we assess corporate emissions reduction ambition in the context of reduction pathways, and in doing so show that company reporting has reached a scale and quality that it can be used to supplement global emissions forecasting. We find emissions disclosures of target-setting companies to account for roughly 20% of global [Formula: see text] emissions and 60% of global market capitalisation. Of these, we find near-term targets to be consistent with the aggressive reduction requirements of the divergent net-zero scenario published by the Network for Greening the Financial System, but commitments to 2050 are lacking. There is a large disparity between the total market capitalisation of disclosing companies and the total emissions they cover, a disconnect which we emphasise must be addressed by future policy.