Inflation and energy insecurity would delay “zero emissions” targets worldwide

Although more than a third (34%) of the world’s largest companies have met the net-zero goal – zero emissions – almost all companies (93%) will not achieve their goals if they do not at least double their rate of emissions reduction. to 2030, according to a study by consulting firm Accenture.

The Net Zero concept refers to the situation in which a company has no net impact on the climate, in terms of greenhouse gas (GHG) emissions in its product line.

Based on analysis of emission reduction commitments and actual data from the 2,000 largest public and private companies around the world, Global Business Acceleration Towards Net Zero by 2050 (Global Companies Accelerating Toward Net Zero Emissions in 2050) finds that rising energy price inflation And insecurity in supply pushes commitments out of reach. This, despite the fact that more and more companies in all regions are setting clear and publicly visible decarbonization goals, and that 84% of them plan to increase investments in their sustainability initiatives before the end of 2022.

however, Despite the pledges made, only 7% of companies are on track to meet their Scope 1 and Scope 2 zero emissions targets at their observed rates of change. If the goals are moved to 2050, this percentage increases slightly to 8%. Even in a scenario in which companies accelerate emissions reductions by doubling current rates in the years to 2030 and then tripling, 59% would still be unable to achieve this in 2050, the deadline considered necessary to avoid the most catastrophic and irreversible impacts. . Climate change.

On the other hand, the study concluded that accelerating towards Net Zero will require “carbon intelligence” capabilities that allow organizations to control, improve, and drive value creation, as well as realize a broader ESG (Social, Environmental, and Governance) approach in their core businesses and value chains. This includes integrating data on carbon, energy and other aspects of sustainability into the company’s financial and operating information to aid decision making on a daily basis.

“Those companies that can make carbon decisions, similar to what they do in financial and operational matters, will be in a much stronger position to explain how and why their actions create value for shareholders and stakeholders. Leading companies are already doing this and Chile can be part of this important change,” comments Mauricio Bermúdez, global leader for carbon intelligence and strategies at Accenture.

This means – according to the report – integrating carbon data and knowledge for decision making across all of its systems and processes, allowing for efficient use of financial and non-financial resources, along with robust risk management in digital deployment. and the biological and industrial technologies that will be necessary to reach Net Zero.

In fact, The next Global Conference on Climate Change, which begins on Sunday 6 November in Egypt (COP27), has been positioned in the COP’s “to implement” position. “This change in focus is urgent: according to the Intergovernmental Panel on Climate Change, we have about 500 working days until global emissions reach their historical maximum. We are also already seeing the effects of severe weather around the world that bring with it a hotter, more dynamic atmosphere” , says Bermudez.