Previously the CCRM report focused on companies’ progress towards their 2050 “net zero” targets but this time it deliberately shifted to a deep dive into 2030 climate commitments.
“Aspiring to be net zero by 2050 is of little use if we trigger runaway climate change over the next few years,” said Sabine Frank, executive director at Carbon Market Watch.
“Corporations urgently need to at least halve their emissions before 2030. The dozens of corporations analysed by the CCRM are neither individually nor collectively on track for emissions reductions that are compatible with a 1.5°C scenario.”
The report also found that only eight of the companies assessed across four sectors – automotive, energy, fashion, and agriculture and retail – had set 2030 targets rated as of high or reasonable credibility.
Many of the remainder relied on “creative carbon accounting and dubious or questionable solutions, such as (ill-defined) carbon removals, carbon capture and storage, renewable energy certificates and bioenergy”, it claimed.
Benja Faecks, an expert on global carbon markets at Carbon Market Watch, said: “The reliance on questionable strategies detracts from genuine emissions reduction efforts, undermining the integrity of corporate climate targets.”
And the reports calls on governments to legislate to force companies to act on climate change, through binding sector-wide climate targets, compulsory carbon pricing or cap-and-trade emissions trading systems.
“As we navigate the complexities of corporate climate accountability, one thing is certain: voluntary initiatives alone won’t suffice,” said Sam Van den Plas, policy director at Carbon Market Watch.
“It’s time for robust regulation to ensure that corporate actions align with the urgency of the climate crisis, moving us beyond rhetoric towards meaningful emission reductions.”
H&M welcomed the report but pointed out the data on which its assessment was based came from its sustainability disclosure for 2022, not the latest figures published for 2023.
“In 2023, we achieved a 22% reduction in scope 3 emissions from our 2019 baseline, excluding indirect use-phase emissions. This is indicating that we’re on track with our progress towards achieving our science-based targets,” said a spokesperson.
“Additionally to the progress update published in our Sustainability Disclosure, we also recently published our comprehensive Climate Transition Plan, which provides detailed information about our efforts towards reaching our ambitious climate goals.”
A Fast Retailing spokesperson said: “The Corporate Climate Responsibility Monitor report is an important resource for all corporations taking action to address climate change. Fast Retailing has been making steady progress in its sustainability initiatives after formulating its 2030 target and action plan, which includes only solid SBT-approved targets.
“Fast Retailing will publish updated progress for fiscal 2023 against its 2030 plan later this month. We welcome dialogue and scrutiny of the company’s climate commitments and goals, and remain committed to continue to making progress and to sharing information about our initiatives in the future.”
Adidas said it had set targets for 2025 and 2030 that would help the company to limit emissions aligned with the 1.5°C benchmark and that these targets had been approved by the Science Based Targets initiative (SBTi).
“For the last year 2023, we reported a significant 24% reduction in total absolute GHG emissions including supply chain compared to the previous year. This effect is based on our innovation effort, that has also enabled us to use low-carbon manufacturing methods and materials, as well as decreased production volumes due to high inventory levels in the market,” said a spokesperson.
“The average annual GHG emissions per product for 2023 decreased by 3% compared to the previous year. This reduction has been driven by the work done with our suppliers, such as continuing with the phase-out of coal in our manufacturing facilities and the increased use of renewable energy.
“During 2023, some of our suppliers purchased Energy Attribute Certificates (EACs) or RECs. The reduction of emissions resulting from these certificates were not factored into our footprint calculation, due to the current lack of consensus on concepts on the operationalisation and accounting approach.”
Inditex declined to comment on the report. Ecotextile News approached Nike for comment. The full report is available online on the Carbon Market Watch website.
