25 October 2017: More companies are ramping up their efforts to respond to climate change by including low-carbon goals in their long-term business plans, and many intend to increase ambition over the next few years, according to a report by CDP, formerly the Carbon Disclosure Project. Titled ‘Picking up the Pace: Tracking corporate action on climate change,’ the publication highlights the role companies play in meeting the goals of the Paris Agreement on climate change.

The report was launched in advance of the UN Climate Change Conference that will convene from 6-17 November 2017 in Bonn, Germany. In his foreword to the report, CDP CEO Paul Simpson says the “corporate world is at a tipping point in the low-carbon transition,” with billions of dollars waiting to be unlocked.

The report finds that the number of companies that have committed to set emissions reduction targets in line with or below the 2°C temperature goal increased from 94 to 151 in one year, with 317 more companies planning to announce targets in the next two years. Of the 1,073 companies responding to the CDP request for climate disclosure, 89% have set emission reduction targets in 2017, 68% of those are setting targets to at least 2020, and 20% are planning their sustainability actions to 2030 and beyond.

The number of companies with a renewable energy production target has increased by 36% since 2016.

The report highlights renewable energy investments as a significant component of companies’ efforts to combat climate change. For example, BT and Unilever commit to source 100% renewable energy by 2030 as part of RE100, an initiative of The Climate Group and CDP. The number of companies with a renewable energy production target has increased by 36% since 2016.

The publication also provides examples of how companies are increasingly: setting carbon prices internally, with approximately 32% of the surveyed companies having set such a price and an additional 18% intending to do so; undertaking innovative efforts to cut emissions, such as Nissan selling electric cars; and offering low-carbon products and services, with 75% of companies in the sample now doing so. The report explains that collaboration between cities and corporations is critical for transitioning to a low-carbon economy. For example, the city of San Diego is working with GE Current, AT&T, Intel and others on a US$30 million project to upgrade 25% of streetlamps to LEDs with data-collecting sensors.

CDP runs the global disclosure system that helps companies, cities, states and regions measure and manage their environmental impacts. The report is part of CDP’s ‘Tracking corporate action on climate change’ series. [Picking up the Pace: Tracking Corporate Action on Climate Change] [‘Picking up the Pace’ Webpage] [Report Foreword] [UNFCCC Press Release] [RE100 Website]