Global corporations have begun their transition to a low carbon economy but it is still not enough to meet the goals set in the Paris Agreement.
That’s according to a report by Carbon Disclosure Project (CDP), which states some multinationals have set emission targets but others have yet to develop strategies that are compatible with the 2°C temperature goal agreed by world governments.
It surveyed 1,089 major companies which in total account for 12% of global greenhouse gas emissions.
The report reveals 85% of them have set goals for lowering greenhouse gas emissions as part of a drive to slow climate change and avert downpours, heatwaves and rising sea levels.
However, it adds while 55% of companies have targets for 2020 and beyond, only 14% have set goals for 2030 or beyond.
A total of 29% of responding companies use internal carbon pricing while 19% plan to do so in the near future.
The report also found companies that have managed to deliver significant cuts in emissions have also seen increases in revenues.
Revenues have increased by 29% in total and emissions have been reduced by 26%.
The report adds: “In the Paris Agreement, emissions reductions are talked about at the country level and national governments will lead with policy changes and regulation but companies can move much faster than governments and they have an opportunity to demonstrate their leadership, agility and creativity in curbing their own substantial emissions.
“Many companies had already realised the need for action before Paris and they played an important role in making that summit a success. Others, however, are yet to come on board.”