Page 4 - AfrElec Week 47 2021
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AfrElec COMMENTARY AfrElec
Corporate net zero targets grow,
but more needs to be done
GLOBAL LISTED companies accounting for 75% of total for the average large multinational firm, Scope
global corporate revenues now have net zero tar- 3 emissions will be 11.4 times higher than direct
gets of some kind, with the share growing four- emissions. Net-Zero Tracker is urging compa-
fold over the past year, according to new research nies to take advantage of the broad opportunities
from Net-Zero Tracker. for decarbonisation upstream and downstream.
However, only one-third of listed companies Net-Zero Tracker is also expressing con-
surveyed said they intended to address their cern about a potential over-reliance on carbon
indirect emission, known as Scope 3 emissions, offsetting and a lack of progress in firming up
in full, while 43% of businesses had no targets offsetting plans. 43% of the businesses assessed
that covered Scope 3 emissions at all. by revenue are planning to use offsetting to meet
Net-Zero Tracker said in its post-COP26 their net-zero targets, but two-thirds of this
stocktake of net-zero targets, published on cohort have not specified any information on
November 25, that there was an “explosion” of how and why carbon credits will be used.
interest in net zero from both the private and Oxford Net-Zero’s executive director Dr
public sectors – but still only gradual improve- Steve Smith said: “We are seeing a huge number
ments in the integrity of delivery plans. of net-zero plans that keep the door open to buy-
The research aims to closely monitor the ing offset credits. That is worrying because the
quantity and quality of net zero commit- market is awash with cheap credits of dubious
ments by companies and countries in a bid to quality. We can’t offset all the way to real, global
improve their transparency and to eliminate net zero. Leaders need to prioritise cutting their
greenwashing. own emissions and set out clear rules and limits
to their offsetting.”
Stocktake Net-Zero Tracker is backed by the University
Net-Zero Tracker’s stocktake found that the total of Oxford’s Oxford Net Zero initiative, as well as
cumulative combined global revenue covered the Energy & Climate Intelligence Unit (ECIU),
by public company net-zero targets amounts to the Data-Driven EnviroLab (DDL) and the
$19.5 trillion. NewClimate Institute.
This figure is up almost fourfold year-on-year As well as tracking targets from corporates,
and represents almost 75% of total revenues. Net-Zero Tracker’s update provides a snapshot
Only publicly listed companies are included in of trends from nations, cities and regions.
the stocktake. Commitments from these actors now cover
The report also revealed a gradual improve- 90% of GDP, 88% of the global population and
ment in the credibility of corporate targets, with 88% of global emissions.
more targets being science-based and supported Nonetheless, most countries (55%) with
by proper planning for delivery. net-zero targets currently have them set after
207 businesses had set targets that met what 2050. The Intergovernmental Panel on Climate
Net-Zero Tracker has dubbed the minimum Change (IPCC) has stated that bringing emis-
procedural standards, up from 110 last year. sions to net-zero by 2050 at the latest will give
These 207 business with credible targets the best chance of limiting the global tempera-
accounted for $8 trillion of turnover, up from ture increase to 1.5C, beyond which, the worst
$2.1 trillion last year. impacts of the climate crisis will be felt.
There was also a doubling, year-on-year, in As for city targets, there has been an 87%
the number of companies meeting Net-Zero increase year-on-year in target setting. However,
Tracker’s criteria for leadership on decarbonisa- two-thirds of the targets do not yet have support-
tion. There are now 22 firms in this cohort, with ing plans. Most exist only as pledges or discus-
combined revenues of almost $1.35trn. sions. As with corporates, Net-Zero Tracker is
This could majorly undermine the credibil- urging cities to clarify their plans for offsetting.
ity of net-zero targets. CDP has estimated that,
P4 www. NEWSBASE .com Week 47 25•November•2021
