2022-03-06-奥纬咨询-Now_For_Nature_76页_12mb

Summary of "NOW FOR NATURE: THE DECADE OF DELIVERY"

Core Content

This report, published by CDP in March 2022, outlines the progress and challenges in addressing climate and nature-related risks among European companies. It emphasizes the need for systemic transformation and collective action to meet the goals of the Paris Agreement and ensure long-term sustainability and financial stability.

Main Viewpoints

• Climate and Nature are Interlinked: Companies' impacts on climate and nature are deeply connected, requiring coordinated action across the value chain.
• Ambition Outpaces Action: While there has been significant growth in climate-related commitments, especially science-based targets (SBTs), the actual reduction in emissions is still lacking.
• Leadership is Concentrated: A small number of companies are leading the way in climate and nature action, with the majority still lagging behind.
• Financial Sector is a Key Driver: The European financial sector is playing a pivotal role in pushing for climate action, with increased engagement and commitments to net-zero.

Key Information

Environmental Impact and Disclosure

• European companies have a significant environmental footprint, with value chain emissions being six times higher than direct operational emissions.
• In 2021, over 13,000 companies, including 2,400 in Europe (representing 74% of European market value), disclosed environmental data through CDP.
• 34% of European Scope 1 and 2 emissions reported to CDP are now covered by SBTs.

Science-Based Targets (SBTs)

• The number of European companies with approved SBTs grew by 85% in 2021.
• 16% of European companies have set 1.5°C-aligned SBTs.
• If all companies set such targets, the annual emissions reductions would be equivalent to France and the Netherlands' combined emissions (300–450 MN tonnes CO₂e).
• 80% of newly committed SBTs are aligned with the 1.5°C goal.

Financial Sector Engagement

• The Glasgow Financial Alliance for Net Zero (GFANZ) has driven significant growth in financial sector commitments.
• 87% of the balance sheets of the top 50 European banks are now part of the Net-Zero Banking Alliance (NZBA).
• 44% of European financial institutions now disclose portfolio emissions, up from 30% in 2020.
• 27% of financial institutions disclose emissions for at least 50% of their portfolio.
• Asset managers are more active in engaging on SBTs than banks or insurers, with 33% of European financial services companies encouraging or planning to encourage their portfolio companies to set SBTs.

Nature as a Blind Spot

• Nature-related risks, such as deforestation and water scarcity, are not receiving the same attention as climate risks.
• Only 27% of companies in high water stress regions engage more than half of their suppliers.
• Less than 25% of companies with supply chains in high deforestation-risk countries have a zero-deforestation commitment.
• Comprehensive traceability systems for key commodities like soy, palm oil, beef, and cocoa are rare.

Strategic Gaps

• There is a 400-megatonne opportunity for emissions reductions if all companies matched the performance of sector leaders.
• Hard-to-abate sectors such as steel, cement, and transport services show lower ambition for 1.5°C targets.
• In some sectors, like cement, no companies reported 1.5°C SBTs.

Call to Action

• The European Green Deal and European Climate Pact are key frameworks for driving climate action.
• The pandemic has shown that large-scale transformation is possible when needed.
• The "Decade of Delivery" is now underway, and accelerating change is critical.

Conclusion

The report highlights that while European companies and financial institutions are making strides in climate action, there is still a significant gap in addressing nature-related impacts. It stresses the need for broader leadership, systemic change, and increased transparency and engagement across all sectors and supply chains to meet the 1.5°C target and ensure planetary and financial stability.