Despite the urgency, the actions to date are not enough – as new analysis of the energy sector shows
Despite the urgency, the actions to date are not enough – as new analysis of the energy sector shows
On 18th September, The Transition Pathway Initiative (TPI) released an Assessment (PDF) of how 135 of the world’s largest, publicly companies in the energy (oil and gas, coal mining and electricity) sectors are responding to climate change. There are some positive findings in the data:
Almost half of the electricity utilities assessed are already aligned with what the Paris Agreement requires by 2030, or will be on the basis of emissions targets they have set.
Some companies, such as EDF, E.ON, Exelon, Innogy, Ørsted and PG&E, are projected to be nearly zero-carbon by 2030. Almost one third of the companies (31 per cent, or 42 companies) are considered to have a strategic approach to climate change.
However, the wider picture is sobering. Given that the report looks at many of the world’s largest and highest-emitting public companies it is deeply concerning that 69% are not considered to be approaching the issues strategically. In fact, many of these provide little or no information on their approach to managing climate change.
When we look at carbon performance the picture is even more worrying (as illustrated below). Only two oil and gas companies, Shell and Repsol, plan to be aligned with the minimum reductions pledged by countries as part of the Paris Agreement in the form of Nationally Determined Contributions (NDCs). These NDCs, even if fully implemented, are expected to leave us close to a 3°C world. In the electricity sector, 29 of the 59 companies expected to be aligned with the NDCs, but nonetheless only 13 are or expect to be aligned with a below 2°C scenario. The bottom line is that while climate change is on the corporate agenda it is not being treated with anything like the urgency needed.
Source: Dietz et al. 2019 (PDF)