Most Companies Struggle to Meet Ambitious Emission Reduction Targets
A University of Twente study reveals only 22% of companies with net-zero targets effectively reduce emissions to residual levels and compensate by removing CO2, highlighting significant challenges.
Understanding Net-Zero Ambitions
A net-zero target involves reducing greenhouse gas emissions to the lowest possible levels and compensating for the remaining emissions by removing equivalent amounts of CO2 from the atmosphere. Despite the urgency and global commitment to these targets, a study from the University of Twente has revealed that only 22% of companies with net-zero goals are genuinely mitigating and compensating their emissions effectively. This statistic underscores the considerable difficulties businesses face in defining and achieving their ambitious reduction targets.
Insights from the University of Twente
Dr. Rosalie Arendt, a researcher at the University of Twente, emphasized that many companies, including major IT corporations like Microsoft, Tencent, and Alphabet, report higher residual emissions despite being in sectors where emissions are not inherently unavoidable. This discrepancy raises concerns about the clarity and sincerity of these companies’ net-zero pledges. Arendt’s analysis of 115 large companies showed that only 28 provided a clear quantification of their residual emissions, revealing a significant gap in transparent and accountable emission reporting.
The Role of Science-Based Targets
The Science Based Targets initiative (SBTi) plays a crucial role in guiding companies to set and achieve science-based emissions reduction targets. Sika, a company committed to sustainability, has validated its net-zero emissions targets for 2050 with SBTi. The company aims to reduce greenhouse gas emissions by 50.4% by 2032 for scope 1 and scope 2 emissions, and by 30% for scope 3 emissions. This commitment showcases how integrating scientific benchmarks can help companies align their climate strategies with global warming limitations and achieve meaningful progress towards net-zero emissions.
Challenges and Opportunities in the EU
The European Union faces its own set of challenges in reaching its ambitious net-zero targets. According to a report by Rystad Energy, the EU is falling behind in clean technology investments, with only $125 billion spent in 2023 compared to China’s $390 billion. The Net-Zero Industry Act (NZIA) aims for a 92% emissions cut by 2040 and net zero by 2050, but the upcoming EU elections and potential political shifts may impact the continent’s climate policies. Despite these challenges, the NZIA aims to boost key clean technologies, including batteries, carbon capture, utilization, and storage (CCUS), and hydrogen electrolysers.
A Call for Inclusive Strategies
Dr. Arendt advocates for a collaborative approach to defining residual emissions, involving not only companies but also governments and civil society actors at national and international levels. This inclusive strategy is essential to ensure fair contributions to global climate efforts, particularly to support the most vulnerable populations. By fostering transparency and accountability, businesses and policymakers can work together to develop sustainable solutions and drive meaningful progress towards a net-zero future.
Bronnen
- www.duurzaam-ondernemen.nl
- www.utwente.nl
- sciencebasedtargets.org
- news.europawire.eu
- www.energyconnects.com