A global team of academics claims to have developed a more accurate model to measure business progress against climate targets set by the Paris Agreement. The results of a pilot study today revealed that large companies It might perform worse than you think. their net zero goal
published in the journal Nature Communications on Wednesday.The study defines a new framework for managing enterprise carbon performance. It aims to align the company with the Paris Agreement targets to limit global warming to 1.5C, or “below” 2C.
The research also includes the results of a pilot analysis of 20 companies in the global cement industry and the Australian energy sector using the new assessment framework, which found that Engie alone is working towards meeting its climate commitments and goals. Paris Agreement.
The global energy company has canceled all coal plants worldwide by early 2017 and plans to phase out the remaining natural gas plants by the end of 2037 as it pursues its goal of achieving net zero carbon emissions within. Year 2045
But in addition to Engie, nine other energy companies assessed in the study, AGL, Energy Australia, Origin, Stanwell, CS Energy, Alinta, Delta, Millmerran and Callide, were found to fail to meet the targets of the clause. OK Paris .
A pilot analysis of 20 companies in Australia’s global cement industry and energy sector reveals that Engie is the only company working to meet its climate commitments and Paris Agreement goals.
As well as the 10 global cement companies assessed by the study — Heidelberg, ACC, Ambuja, Ultratech, Shree, CRH (LON), Holcim, Asia Cement, Siam Cement, and CEMex CPO, none of these companies are considered. in the way achieve the goals of the Paris Agreement
Study co-author Saphira Rekker, assistant professor of sustainable finance at the University of Queensland. Describing the findings as “shocking”, arguing that the current Paris Agreement route model fails to provide an accurate picture of the progress of companies. to actually reduce emissions.
For this reason, she warned that big companies Many of those companies and their investors may be exposed to significant risks associated with net zero change.
“Because current modeling frameworks cannot integrate a strict 2C decarbonization path or link this path with a corresponding starting point. We realized that a new framework needed to be developed,” she explains. “It was shocking when we applied the Paris Compliant Pathways (PCP) metrics to 10 Australian utilities and 10 global cement companies. Only 1 in 20 companies can claim to meet Paris requirements. This low carbon removal rate costs the company billions. investment for risk”
The study concluded that this decade required a deep reduction in carbon emissions. If this sector must prove in line with the goals of the Paris Agreement
The researchers also examined the carbon separation pathway in the steel sector. It is part of a joint pilot program with Norges Bank Investment Management (NBIM), which manages $1 trillion in assets worldwide.
After examining emissions data at 25 steelmakers, they found that most companies were emitting more greenhouse gases than their total carbon budgets by 2019. By 2019, the study concluded that this decade was necessary. There must be a deep reduction in carbon emissions. If this sector must prove in line with the goals of the Paris Agreement
Chris Greig, study co-author and Princeton University researcher at the Andlinger Center for Energy and the Environment, said the PCP organization climate assessment framework developed by the study set a new standard for transparency in climate change. Carbon Dioxide Emissions
“Considering the publicly available reports The analysis reveals a large gap between the ambitious promises made by many companies and the actual operations of these companies. But there is often not enough information to verify consistency,” he explains. We hope that we can expand our coverage and improve our tracking capabilities in line with the Paris goals.”