UK-listed firms are most likely to pledge net zero targets, but few will reach them
UK-listed firms are the most likely to have set a net zero target for their emissions output than their European counterparts, according to a new report.
Though just five per cent across the continent are on track to meet their targets.
The study, by consulting and outsourcing giant Accenture, found that less fossil-fuel reliant industries like professional services will be on track to meet their carbon commitments by 2050 in they double their efforts in the next 10 years.
But more ‘radical’ acceleration is needed for firms in oil and gas, construction and manufacturing industries, according to the report.
The average net zero target for firms across the continent is 2043, Accenture found – with many opting for the mid-century while more ambitious and less carbon-reliant firms aim for 2030 to 2035.
“The European business community is more engaged than ever in the race to zero, with the number of companies publicly setting goals having grown over the last two years,” CEO of Accenture in Europe, Jean-Marc Ollagnier said.
“And as our study shows, the targets work.”
COP26
The report, which analysed data from more than 1,000 listed companies across Europe’s major stock indexes, revealed that firms that have pledged goals to slash emissions have seen their carbon output shrink by around 10 per cent over the past decade – while those without targets watched their emissions increase.
Ollagnier added: “Net zero should be managed as any strategic business priority: set clear objectives to drive the entire organization to the same direction and monitor progress to correct the trajectory as appropriate. Making targets public also helps create the required collective momentum, as companies can’t solve it alone.”
But with the UN’s flagship climate conference COP26 – the largest conference in the world – beginning in two weeks, firms have been urged to up their efforts to hit meet their goals.
Accenture’s chief responsibility officer and Sustainability Services global lead Peter Lacy said: “Though the number of newly set targets is reassuring, it is still clear that organizations are not moving fast enough.
“With COP26 just a few weeks away, businesses and governments across all parts of the world need to focus their efforts on concrete action that follows robust targets to meet the challenge our world faces to reach net zero by mid-century and hold global warming to 1.5°c.”