In Montreal, protesters denounced Royal Bank of Canada investment in pipelines last October – Copyright AFP Wojtek RADWANSKI
Decarbonization plans by some of the largest corporations in the G7 countries have put the Earth on course for a potentially catastrophic 2.7 degrees Celsius, well above the Paris Agreement’s temperature targets, according to an analysis Tuesday.
As more and more companies announce their intention to become carbon neutral no later than mid-century, scrutiny of corporate environmental action statements is becoming increasingly important to check if they are in line with the latest advances in climate science.
CDP, a non-profit organization that operates a global disclosure system for companies to manage their environmental impact, studied the climate plans of more than 4,000 firms in the world’s seven largest economies.
They found that current plans would result in the world being 2.7°C warmer by 2100 than it is now, far from the temperature targets of the 2015 Paris Agreement, which commits countries to limit warming to “well below” 2°C. From above the pre-industrial level. .
The analysis showed that Europe fared the best, as quick action from 2021 likely “lowered” the temperature forecast by around 0.3°C.
On the other hand, businesses in Canada performed the worst in terms of decarbonization plans, with 88 percent of reported greenhouse gas emissions coming from firms that do not have disclosed net zero emission plans.
Across all regions and sectors, only the European electricity generation sector has achieved a temperature rating below 2°C, driven by the targets of renewable and nuclear energy companies.
Many companies have plans to reduce emissions directly related to their business operations, such as car emissions and office heating.
Far fewer companies have plans that cover emissions from the consumption or use of their products, which often take into account a large portion of their carbon footprint.
According to CDP, companies in Germany, Italy and the Netherlands were implementing emission reduction policies across the entire value chain, which corresponded to a 2.2°C increase in temperature.
“However, despite this progress, average temperatures for corporations remain well above 1.5°C in all major European economies,” the report said.