EcoAct CEO: "Net Zero Pledges Encouraging, But..."
Updated: Nov 19
Latest edition of influential annual survey highlights SBT, Scope 3 concerns
The climate and sustainability consultancy EcoAct has released the latest
edition of its Sustainability Reporting Performance report. The report
reveals that, while the number of companies setting themselves Net Zero
targets has grown, 'Scope 3' reporting remains a particular concern.
EcoAct's long-running publication takes the form of an in-depth critique of
the climate change strategies of leading businesses. This year's edition
finds that, while 45 per cent of the companies listed on the UK's FTSE100
index have committed themselves to Net Zero by 2050, only 16 per cent have a
robust strategy for achieving that goal.
"Net Zero transition strategies need to be in place and implemented by
2030 with Net Zero targets no later than 2050," said Stuart Lemmon, CEO,
Northern Europe, EcoAct. "This year we are encouraged to see a large uplift
in company commitments to Net Zero in response to our urgent global goal.
However, if we are to succeed in this goal, it is imperative that
commitments are backed by sound and achievable strategy."
The most commonly agreed yardstick for decarbonization efforts has been that
given by the 2019 Intergovernmental Panel on Climate Change (IPCC) report,
which proposes concerted action to limit overall warming to 1.5 degrees.
This 'science-based target' (SBT) would require a general commitment to
reduce net carbon emissions to zero by 2050. According to EcoAct, only 35
per cent of FTSE100 companies have so far announced a Net Zero strategy
aligned such an appropriate SBT.
More tellingly, only 33 per cent have set explicit targets for the reduction
of 'Scope 3' emissions. The 'Scope 3' designation is a generally-accepted
accounting standard applied to those emissions which an organization
indirectly impacts in its value chain. Scope 3 emissions are often
considered difficult to track because of the involvement of 'third parties'.
However, across many sectors, they comprise the most significant elements of
companies' carbon footprints.
EcoAct's report can be accessed at:
ZiggyTec's IoT-based solutions provide businesses across the property sector
with significant enhancements to their Scope 3 reporting capability.
Contact us to learn more.