Paris – Only 40 of the world’s 100 largest private firms have set net-zero carbon emissions targets to fight climate change, according to a report released Monday. This finding highlights a significant gap between private and public companies in taking action to reduce planet-heating emissions.
The report by the group Net Zero Tracker emphasized the urgent need for all companies to reduce their emissions to meet the goals of the 2015 Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius. However, private firms have been slow to adopt climate commitments due to a lack of market pressures, regulation, and reputational concerns.
John Lange of Net Zero Tracker noted that the landscape is changing, with more companies starting to prioritize sustainability. The report compared 200 of the world’s largest public and private companies and found that only 40 of the 100 private firms assessed had net-zero targets, compared to 70 of 100 publicly-listed companies.
The report also highlighted the importance of having a clear plan to achieve these targets, as simply making a pledge without a strategy is not enough. Only eight private companies with net-zero targets have published plans on how they will reduce their emissions.
Furthermore, the report revealed that none of the eight fossil fuel companies included in the analysis had set a net-zero target, indicating a lack of commitment to reducing emissions in this sector. Despite the slow progress, new regulations in various jurisdictions, such as the EU’s Corporate Sustainability Reporting Directive, are expected to drive more companies towards sustainability.
With the enforcement of these regulations looming, private firms will soon have to face the consequences of not taking action to reduce their emissions. The report emphasized that changes made by these large companies will have a significant impact on the environment and set a precedent for others in their respective sectors to follow suit.