• 318 financial institutions and multinational firms write to high impact companies requesting science-based targets for reducing emissions.^[1]
• BASF, Caterpillar, FedEx, General Electric, JD.com, Nintendo, Qantas, Rio Tinto, Wal Mart de Mexico and Wilmar International among businesses targeted.
• Despite net-zero momentum, nearly half (44%) of MSCI All Country World index still without credible targets.^[2]
• Companies with targets approved by the Science Based Targets initiative (SBTi) typically cut emissions by 8.8% per year – well above the pace needed for a 1.5°C path.^[3]
• Growing 30% since last year, the SBT Campaign is the world’s biggest campaign engaging companies to set 1.5°C targets through the SBTi.

October 25, 2022 (London/Berlin): 318 financial institutions and multinational firms with $37 trillion in assets and spending power are calling on over 1,000 of the world’s highest impact businesses to set emissions goals in line with the Paris agreement’s 1.5°C goal.^[4]

The specific request is for companies to set an emissions reduction target approved through the Science Based Targets initiative, the industry standard for credible climate targets that cover all of a company’s value chain emissions.

The 2022 CDP Science-Based Targets campaign is coordinated by the global non-profit CDP, which runs the world’s environmental disclosure system.

CDP sent letters to over 1,000 companies worldwide, including China’s largest retailer JD.com, Australian flag carrier Qantas, the world’s biggest chemicals firm BASF, as well as Caterpillar, FedEx, General Electric, Wal Mart de Mexico and Wilmar International.

The list of companies targeted is heavily weighted towards Asia and the United States. 48% of all companies targeted are based in the Asia Pacific region, followed by 23% for the United States. Only around 1 in 10 targeted companies are European, showing the maturity of strong target-setting in the region.

The campaign request is backed by many of the world’s largest financial institutions, including Allianz Global Investors, AXA Group, Crédit Agricole, Insight Investment Management, La Banque Postale, Nomura Asset Management, UBS, and the European Investment Bank.

The group also includes 45 multinational companies with over US$710 billion in annual procurement spending, such as PepsiCo, Inc., Astra Zeneca, Yamaha and Schneider Electric, using the campaign to improve emissions target-setting by their suppliers and meet their own targets.

The CDP campaign grew by over 30% since last year, both in terms of the number of supporting organizations and their collective assets and purchasing power.

The 1,000 companies targeted are critical for global efforts to limit global warming to 1.5°C. They are the source of 7 gigatons of Scope 1 and 2 emissions - equivalent to India and the United States combined - and have a combined market value of over US$25 trillion (44% of the entire MSCI All Country World index).^[5]

Ambroise Fayolle, Vice President of the European Investment Bank, said:

“At the European Investment Bank Group, we ensure that all the projects and operations we finance are aligned with the goals of the Paris Agreement. In addition, we consider the wider activities of our counterparties, beyond the project that is being created with the support of our funding. Whether or not a counterparty has a 2030 and a 2050 target is a useful indicator of its climate ambitions. This helps us to support our partners to further decarbonize their activities and to strengthen their resilience to climate change.”

Laurent Babikian, Joint Global Director Capital Markets at CDP, said:

“The past few months of extreme weather have again shown us what a warming world does at 1.2 degrees. It will get catastrophically worse unless we see an unprecedented reduction in GHG emissions - 50% in the next eight years – to allow us to cap the rise at 1.5 degrees. But this is simply unachievable unless the highest impact companies have ambitious targets for reducing all of their value chain emissions. I am glad financial institutions and big global buyers now see SBTs as essential for all companies, and necessary for them to meet their own net-zero ambitions. SBTs are the most accurate assessment of a company’s total emissions impact in the market - without them, companies simply cannot convincingly show investors and customers that they are transitioning.”

Globally, over 3,500 companies representing over a third of global market capitalization are already part of the SBTi.^[6] Among these, over 1,200 have approved 1.5°C targets. SBTi data shows the typical company with a target cuts emissions by 8.8% per year – above the 4.2% required to align with a 1.5°C path.

Dr. Luiz Fernando do Amaral, CEO of the Science Based Targets initiative, said:

“Time is running out. But while we still have a window of opportunity to prevent the worst effects of climate breakdown, there is some cause for optimism. Companies representing more than $38trn of the global economy already have validated science-based targets or commitments to set one. What’s more, according to our theory of change, we have reached the tipping point of high-impact companies worldwide. Those left must now take heed and urgently increase their climate ambitions. Employees, investors and stakeholders of the world’s largest companies must push to ensure they are aligned with the latest climate science. By setting a science-based net-zero target, business leaders can have the confidence that their climate mitigation activities are in line with near-term 1.5C and long-term net-zero.”

Rossella Cardone, Sustainability Director at Jaguar Land Rover, said:

“As part of our journey to Net Zero by 2039 and aligned to our Science-Based Targets initiative goals by 2030, we understand that collaborating with world leaders and experts in their fields is the way to drive real change within the industry across the entire ecosystem, from manufacturers to suppliers and we encourage our partners to adopt SBT standards”

[6] SBTi progress report, January 2022.