Net-zero under the microscope

A new report, the Corporate Climate Responsibility Monitor 2022, has generated plenty of discussion and attention since its release earlier this month. The report examines the climate pledges of 25 of the world’s largest companies and concludes: “not good enough.” Unsurprisingly, most of those rated by the report have begun to push back and defend their pledges. But if you dig deeper into the findings, it echoes much of the advice we have explored through Luminous blogs and podcasts.

Takeaway #1: Set a clear and ambitious emissions reduction commitment in the short-term.

Most companies are criticised for both a lack of ambition and a lack of transparency on their target. Companies could communicate more clearly by mapping out the specifics of their net zero carbon pathway: what projects are on the plan, how many emissions will each project reduce, and what investments are being made to do so.

Takeaway #2: Drive emissions accounting and reduction plans into your value chain.

Scope 3 emissions, or those in the value chain, make up the majority of most companies’ carbon footprints. Carbon reduction commitments cannot be credible without a good understand of scope 3 and a target to reduce these emissions, too.

And my personal takeaway? We are rightly moving from a need to announce a carbon reduction commitment to a need to demonstrate reductions. The best thing that any company can do is properly plan out their emissions reduction pathway and then begin implementing reduction projects, right away. These plans must be communicated clearly, and with enough detail to satisfy a range of stakeholders. The pressure is only going to grow, companies need to take action to improve their communications right now.

If you would like to discuss how to improve your climate communications, please feel free to get in touch: