Published on July 17th, 2018 | by Joshua S Hill0
Climate-Active Corporations Expect Half Of Products To Be Low-Carbon In 10 Years
July 17th, 2018 by Joshua S Hill
A recent survey of corporations around the world which have greenhouse gas emissions reduction targets approved by the Science Based Targets initiative has shown that 52% of executives predict that at least half of their products and services will be low-carbon by 2028.
The Science Based Targets initiative works with corporations around the world to promote, codify, and implement greenhouse gas emissions reduction targets that are in line with contributing to keeping global temperature increase below 2°C compared to pre-industrial levels. So far the Initiative has approved 430 corporations and is actively working with many more.
Subsequently, the Initiative worked with internet-based market research and data analytics firm YouGov to poll those corporations involved. The survey received responses from 185 firms from 37 different countries, all of which have already set or have committed to set science-based targets to cut their greenhouse gas emissions in line th the rates required to keep global warming below 2°C.
The headline finding from the survey was over half of executives responding to the survey (52%) expect that at least 50% of their products and services will be low-carbon by 2028 — where “low-carbon” is defined as ‘causing only a relatively small net release of carbon dioxide into the atmosphere’. Of these respondents, nearly 1 in 5 (19%) predict that figure be closer to 100% will be low-carbon in ten years’ time.
“Companies are increasingly aware of the risks of dangerous climate change and the business opportunities in taking action,” explained Dexter Galvin, Global Director of Corporations & Supply Chains at CDP, one of the Science Based Targets initiative partners.
“It’s clear that many corporates are taking a lead by adopting science-based targets to create low carbon products and services and reduce their emissions. The fact that one in five executives with science-based targets expect 100% of their products and services to be low carbon within a decade is remarkable – and suggests a tipping point is in reach.
“This study shows that companies putting science at the heart of their environmental ambitions are already feeling the benefits. A science-based target should be part of every company roadmap. Those without one will struggle to see around the next corner, posing material risk to their business, while losing significant ground to their competitors.”
The YouGov survey also found that 65% of respondents choosing from a list of up to three factors believe environmental factors are one of the biggest trends likely to affect business growth over the next five years, second only to technological change with 88% and ahead of economic policy at 59%. Maybe unsurprisingly, 79% of executives surveyed said that brand reputation was one of the biggest benefits of setting a science-based target, but 63% also said that the commitment helps drive innovation, while only 29% said that such targets deliver financial savings to their companies.