Only 0.4% of global companies have credible transition plans
Only 4 Italian companies out of 578 have transition plans considered solid
(sustainabilityenvironment.com) – Only 81 out of 18,600 companies worldwide have credible transition plans. A percentage very low, 0.4% that is 1 in 200 (even if 4,100 declare -wrongly- to have aligned planes with 1.5 C). They are the only companies to have provided information on all 21 indicators used by the Carbon Disclosure Project (CDP) in its usual global survey.
Less than last year, when there were 135. “The reduction recorded this year is based on the fact that Cdp has raised the bar, in accordance with the latest science, on what constitutes a credible climate transition plan“, explains the platform that monitors global progress in corporate transition plans by probing companies in 135 countries and belonging to 18 different sectors. A figure that reveals the gap between what is needed and what even the best can do.
13,000 companies at the bottom of the transition plans ranking
And the other 18,500 companies? Only a small proportion of companies revealed information to at least 14 of Cdp’s indicators: 2,300, or about 13% of the total. A threshold that allows them to be classified as on the right track to have credible and solid transition plans. While another 35%, equal to 6,520 companies, reports that it intends to adopt a plan within 2 years.
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“The need for companies to develop a credible climate transition plan is not an additional element, but an essential part of any future planning. Companies must show that they have planned for the future to avoid the worst impacts of climate change and to send the capital markets the right signals that companies will remain profitable,” recalls Amir Sokolowski, global climate director at Cdp.
Of the 578 Italian companies in the CDP list, about 3 out of 4 responded to less than 7 indicators (447 companies), 78 to 8-13 indicators, 49 to 14-20 indicators, and just 4 to all. The most virtuous, looking only at companies with credible transition plans, are Japan (16), Uk (6), USA, France, India, Spain, Switzerland (5).