Private sector climate change report from Thomson Reuters and BSD Consulting
"Global 100 Greenhouse Gas Performance, New Pathways for Growth and Leadership” - 6th Climate change report from Thomson Reuters and BSD Consulting demonstrates citical link between sustainability and growth in Global 100
Importance of non-state actors (private sector) in global Greenhouse Gas (GHG) emissions reductions
Recent research has shown that non-state and subnational action can lead to emissions reductions above and beyond those achieved by national policies alone (UNEP 2016a) and that the Paris Agreement explicitly encourages governments to work more closely with those actors (UNFCCC 2015). Understanding who the biggest corporate emitters are and their recent emissions performance is crucial to raising the level of ambition of Nationally Determined Contributions (NDCs) by 2020.
BSD Consulting together with Thomson Reuters has published 5 reports on this question for the Global 500 and Global 3500 listed companies in the world and on the Global 100 for this latest report. In addition to identifying which are some of the corporate largest emitters in the world in terms of Scope 1 and 2 (as well as Scope 3) a gap with a 2-degree linear pathway was established using a 2010 baseline for all 5 reports and a 1.5-degree pathway in the last report for the Global 3500.
Global 100 report key findings
This report identifies the 100 biggest listed GHG emitters (including their value chains) and complements research by others (including CDP, the UNEP, and Yale University) that assess climate action across different sectors and to track performance of non-state actors. Key findings include:
- Many companies are reducing their GHG footprints and this helps achieve the goals of the Paris treaty.
- The Global 100 contribute about 25% of global emissions annually (value chains included) and without their leadership, the world will not succeed in minimizing the growing risks of climate change.
- Leadership is already happening in around a tenth of these companies, with transparency on emissions and reduction targets of around 2% per year through 2050, in line with science based goals for required change in our emissions trajectory.
- Most Global 100 companies have potential pathways to decarbonization which will enable long term growth and profitability, and there are examples of progress on those developing pathways in the report.
- Stakeholders and customers, like investors and policymakers, should engage with these companies and encourage them to invest in these sustainable growth pathways both for the benefit of the companies themselves and the world around them.
- There is increasing evidence that the conventional wisdom of a trade-off between business profits and the environment is not true, and could even be upside down as investors begin to reward carbon-intensive companies for developing and executing decarbonization plans.
This report and its 5 predecessors have a key role to play for the private sector and its stakeholders (policymakers, national, regional and municipal leaders) to identify global private sector emitters to partner with in order to rise the ambition levels for countries’ NDCs.