- 367 financial institutions (FIs) and multinational companies (MNCs), worth a combined $33 trillion, back CDP’s Science-Based Targets (SBT) Campaign to request that more than 2,100 high-emitting companies set emissions reduction targets.
- 2,100+ high-emitting companies, including FedEX, General Electric, Dow Chemical, Eskom, Nippon Steel Corp, Rio Tinto and JD.com, to be targeted – targeted collectively generating over 8.3 gigatons of scope 1 and 2 CO2e emissions.
- US and China-based companies lag on target setting while companies in Japan are in the lead.
- c.100 new companies joined the Science Based Targets initiative (SBTi) following the 2022-2023 campaign, but more ambitious target setting is urgently needed to achieve global 1.5°C-aligned emission reduction goals.
CDP, the global non-profit that runs the world’s environmental disclosure system, has today launched its annual Science-Based Targets (SBT) campaign targeting high emitting companies.
The campaign is backed by 307 financial institutions (FIs) and 60 multinational corporations (MNCs), with a combined $33 trillion in assets and spending power. CDP is leveraging the market power of those organisations to push 2,100+ high-emitting companies to set 1.5°C aligned emissions reduction targets in line with the latest science.
FedEx, General Electric, Dow Chemical, Eskom, Nippon Steel Corp, Rio Tinto and JD.com are some of targeted high-emitters, and are collectively responsible for 8.3 gigatons of scope 1 and 2 CO2e emissions, equivalent to the annual emissions of the United States, Japan and the United Kingdom combined.[1] In total, the target companies form 32% of MSCI All Country World index (ACWI) and represent approximately US$28 trillion of market capitalization.
This year’s campaign is supported by some of the largest financial institutions across major markets, including Legal & General Investment Management, Nomura Asset Management Co., Ltd., Crédit Agricole SA, New York State Common Retirement Fund, British Columbia Investment Management Corporation (BCI) and Cathay Financial Holdings. Joining them in leading the call for companies to set science-based targets are CDP Supply Chain Members including Bayer, BMW AG and L'Oréal.
The number of FIs supporting the campaign has more than doubled since the campaign launched in 2020, while the number of MNCs supporting the campaign has increased by 33% since last year.
Claire Elsdon, Global Director, Requesting Authorities - Capital Markets, CDP, said: “Record breaking temperatures and devastating floods around the world this year serve as a stark reminder of the urgent need for businesses to drastically reduce emissions."
“The success of this campaign in previous years and the increased number of Financial Institutions and corporate buyers joining our call for action this year, shows the pivotal role those organizations can play in pushing portfolio companies and suppliers to decarbonize, not least to meet their own Scope 3 targets."
“CDP remains clear in our vision to continue to foster a positive ambition loop between Financial Institutions, multinational buyers, and companies, ultimately driving more companies to set robust 1.5°C-aligned science-based targets.”
Since 2020, CDP’s campaign has helped drive over 470 high-impact companies to join the SBTi, with 99 companies joining in the last year. However, at present, companies that have joined the SBTi represent only 34% of the global economy by market capitalization.[2]
Elsdon added, “Tackling a global challenge of this magnitude requires a dramatic scale-up in action from across financial systems and the real economy.”
In recognition of the challenge, CDP has almost doubled the number of high-impact companies to be targeted in the campaign’s fourth cycle, with a view for supporters to reach a wider range of companies and accelerate action toward halving global greenhouse gas (GHG) emissions by 2030 and making more substantial reductions of 90-95% by 2050.
The results of the previous cycle of the campaign, also published today in CDP’s SBT Campaign Final Progress Report, highlight the increased ambition and action from Asia, with companies headquartered in Asia representing the majority (55%) of emissions that are committed to science-based targets following the campaign. Going forwards, greater action is needed from high-emitting markets such as China and the United States, where the majority of companies targeted in the campaign have not committed to set targets.
Stephen Beer, Senior Manager, Sustainability and Responsible Investment, Legal & General Investment Management, said: “Through its Climate Impact Pledge, LGIM assesses over 5,000 companies in climate critical sectors and approaches over 100 companies for direct engagement to help drive change in their sectors and reduce systemic risks. One of our key expectations is for companies to have net zero targets which are certified independently, ideally by the SBTi. This is why we support efforts to encourage companies to adopt science-based targets.”
Jennifer Coulson, Senior Managing Director & Global Head, ESG, British Columbia Investment Management Corporation (BCI), said: “Climate change is a complex, global issue that demands collective action. CDP has a proven track record of bringing together like-minded investors to drive real-world outcomes. Its Science-Based Targets Campaign aligns with BCI's expectation for high-emitting portfolio companies to adopt credible emissions reduction targets that support the transition to a low-carbon economy, as well as informs our ability to make investment decisions that create long-term value for our clients.”
Thomas Udesen, Chief Procurement Officer, Bayer: “Climate protection is integral to Bayer’s strategy. We have set science-based targets (SBTs) and will absolutely reduce our greenhouse gas emissions, from own operations. Reducing emissions in the supply chain is thereby essential, and requires us, and our suppliers, to collaborate and to embrace climate protection as an opportunity and a non-negotiable. Setting science-based targets demonstrates that."
ENDS
Notes to editors
CDP has also today published the final progress report on the 2022-23 CDP Science Based Targets Campaign, which outlines the results of the previous cycle of the campaign. The key findings of the report are summarized below:
- 318 financial institutions and multinational firms with $37 trillion in assets and spending power supported the 2022-2023 campaign.
- Of the high emitters targeted, 99 new companies with a combined market cap of US$ 3.57 trillion have joined the SBTi through CDP’s SBT campaign.
- Since the CDP’s SBT campaign launched in 2020, over 470 high-emitting companies targeted through the campaign have joined the SBTi.
- Japan had the highest number of companies joining the SBTi in this cycle of the campaign: Japan-based companies represent 28% of the total emission of the high-impact companies joining the SBTi through CDP’s SBT campaign (this finding is consistent with the findings of the SBTi Monitoring Report 2022).
- European companies continue to lead on target-setting, but the largest markets China and the United States are still lagging.
- The manufacturing sector demonstrated increased engagement - representing 12% of the total emissions of companies that joined the SBTi after being targeted in CDP’s SBT campaign.
- For more details, read the 2022-23 final progress report.
About CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 740 financial institutions with over $136 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations around the world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization - and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
[2] Source: https://sciencebasedtargets.org/reports/sbti-monit...