- One in five of the world’s 2,000 largest public companies have committed to net-zero emissions.
- These companies have revenues of almost $14 trillion.
- Countries that have adopted net-zero targets are responsible for 61 per cent of global emissions.
At least 20 per cent of the world’s 2,000 largest public companies have committed to net-zero emissions, according to a report by the Energy and Climate Intelligence Unit (ECIU) and Oxford Net-Zero. The report titled “Taking Stock: A global assessment of net-zero targets” notes that these companies have revenues of almost $14 trillion.
The report notes that many of the companies also have interim targets with detailed plans and reporting mechanisms. However, the report notes a lack of clarity on how companies will utilise ‘offsetting’ to meet targets. It states that limits on nature-based offsets result in their unreliability. Carbon offsets are emissions reductions made in one location/industry to compensate for emissions in another location/industry.
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According to Thomas Hale from the Blavatnik School of Government, University of Oxford and co-author of the report, companies have to clarify their offsetting approaches. He argues that if every company relies on offsets and not enough on actual emission cuts, there would be no global accommodation.
The report notes that about 13 per cent of cities with over 500,000 people are now committed to net-zero carbon emissions. Countries that have adopted net-zero targets are responsible for 61 per cent of global emissions, represent 68 per cent of global gross domestic product in PPP terms and comprise 52 per cent of the global population.