The majority of companies have yet to develop and disclose credible climate transition action plans (CTAPs) aligned with limiting global warming to 1.5°C, said new research by the We Mean Business Coalition. The report, published in collaboration with CDP, Ceres and the Environmental Defense Fund, said it is “critical that companies develop a CTAP to ensure their targets are achieved”. Current commitments are “nowhere near” the scale and pace required, the coalition warned. Investment in clean energy is set to rise 50% by 2030, says the IEA, but it must further accelerate to deliver on net zero targets. The report mapped out 31 existing transition plan guidance documents from 17 organisations and surveyed 100 companies, investors, and other stakeholders on their needs, finding that companies are “confused about what to include” and would benefit from simple instructions. Of the more than 13,000 organisations that disclosed their environmental data through CDP in 2021, only 135 disclosed against all 24 indicators in its climate change questionnaire that align with CDP guidance on what constitutes a credible climate transition plan.
Corporate commitments for net zero by 2050 rely on climate transition action plans from 2023.
But not enough companies are creating and disclosing credible CTAPs. ⬇️https://t.co/Ko111zHj1F pic.twitter.com/VGLFqfjySf
— We Mean Business Coalition (@WMBtweets) November 1, 2022