CDP: Pace of Corporate GHG Reduction Needs to Double
September 3, 2009 // Published as a news service by IHS
A report issued by the Carbon Disclose Project (CDP) urges corporations to escalate their greenhouse gas emissions (GHG) reduction efforts to avoid "dangerous" climate change.
CDP said that the world's top 100 public companies are on track for an annual reduction of GHG emissions of 1.9% per year by 2089, but that level is below the 3.9% reduction necessary to cut emissions in developed countries by 80% in 2050.
According to CDP, the Intergovernmental Panel for Climate Change (IPCC) has said that developed economies must reduce GHG emissions by 80-95% by 2050 to avoid "dangerous" climate change.
The research report, The Carbon Chasm, was conducted by CDP to analyze how the world's largest 100 companies set GHG emissions reduction targets and whether the targets are sufficient to combat long-term climate change. The report was based on 2008 data reported to CDP by 92 companies.
"While 73% of global 100 companies have set some form of reduction target, the majority need to be far more aggressive if they are to achieve the long-term reductions required," said Paul Dickinson, CEO of CDP.
According to CDP, businesses cited various motivations for setting emissions reductions targets, including:
- Identifying inefficiencies in corporate operations to achieve cost savings and stimulate innovation.
- Minimizing GHG-associated risks while preparing for potential future regulation.
- Achieving competitive advantage.
However, motivations are largely driven by market forces rather than scientific recommendations, said CDP.
The report's recommendations included:
- The establishment of CO2 reduction targets by every company.
- The setting of targets with clear baseline and target years, reflecting IPCC scientific recommendations.
- The agreement by governments of clear medium- and long-term reduction goals during the United Nations Framework Convention on Climate Change in Copenhagen this year to provide a framework for business to set required targets.
Source: Carbon Disclosure Project (CDP).