Global Compact has partnered with an international not-for-profit CDP, on behalf of Science Based Targets (SBTi), a body that supports companies to set ambitious emissions reduction targets.
In December 2015, more than 190 locations in Paris agreed to limit the rise in average global temperature to well below 2°C (3.6°F) above pre-industrial levels, hoping to keep it as close as possible to 1.5°. Celsius (2.7 degrees Fahrenheit).
Ahead of the G7 summit in the UK, which begins on Friday, take temperature The report shows that indices on the major stock exchanges of the G7 countries are on average at 2.95°C, while four of the seven are on temperature tracks of 3°C or higher – significantly more than the Paris index.
Stock indices consist of the most important companies listed on the country’s largest stock exchange and are vital criteria for understanding market trends and direction.
Delivery in Paris
Since the G7 economies cover nearly 40 percent of the global economy and about 25 percent of global greenhouse gas emissions, the companies that make up the G7 have a responsibility to reduce their emissions, to me SBTi.
G7 companies have the potential to create a ‘domino effect’ of positive change across the broader global economy – Leela Karpase, UN Global Compact
“Group of Seven companies have the potential to create a ‘domino effect’ of positive change across the broader global economy,” He said Leyla Karbasi, Head of Programs, UN Global Compact and Chairman of the Board of Directors of SBTi, calls for the largest companies included in the Group of Seven to urgently scale up climate action.
Invest in the planet
It currently has 70 percent of the Canadian SPTSX 60 index at 3.1 degrees Celsius and about 50 percent of the Italian FTSE MIB at 2.7 degrees Celsius.
While passive investing currently makes up about 40 percent of US and 20 percent of European funds, investors have been warned that only 19 percent of companies included in G7 indices, have climate targets allied with Paris Agreement.
G7 ministers responsible for climate and the environment recently urged companies and investors to align their portfolios with the Paris targets, and set science-based targets for zero-zero emissions by 2050 – at the latest.
“This report highlights the urgent need for markets and investors to achieve the goals of the Paris Agreement… Governments must go even further to catalyze ambitious, science-based goal setting,” said Ms. Karpasi.
space for optimism
However, despite these findings, momentum for action in the G7 countries is growing, with the analysis citing 2020 as a key year for climate commitments.
About 64 percent of all corporate greenhouse gas emissions reduction targets unveiled last year were set by companies based in G7 nations, and the annual rate of science-based targets doubled in 2020 versus 2015 to 2019.
The report also identified four urgent priorities for climate action.
He recommended that businesses and governments collaborate to harness a positive feedback cycle where private procedures and government policies reinforce each other.
Second, companies must work with suppliers to decarbonize supply chains.
Third, it calls on investors to include science-based goals in sustainability-related bonds and climate financial standards.
Finally, the report advised financial institutions to set scientific goals at the portfolio level with the underlying assets to create a domino effect across all sectors of the economy.