London (October 13, 2020): A nearly $20-trillion strong group of 137 financial institutions, including AXA Group, Legal & General Investment Management, Nikko Asset Management Co, and Generation Investment Management, is asking companies to commit to climate action in line with 1.5°C and a net-zero future by setting science-based targets. [1]

The ask is announced in 13.10.2020 in a new engagement campaign coordinated by CDP, a non-profit which runs the global environmental disclosure platform, sent to over 1,800 of the most high-emitting global companies. [2]

Together, they are the source of 13.5 Gt of emissions (Scope 1+2) each year, equivalent to 25% of total global emissions.[3] Across their entire value chain, the companies have influence over 3x this volume of cumulative emissions.

Over one thousand companies across the globe are already setting science-based targets for reducing emissions, among them over 300 settings their ambition at 1.5°C through the Business Ambition for 1.5°C campaign. [4]

Reducing value chain emissions in line with climate science can increase companies’ resilience and competitiveness, help drive innovation, respond to regulatory adjustments, and increase investor confidence. [5]

Emily Kreps, Global Director of Capital Markets at CDP, commented: “The importance of investor engagement to drive sustainable corporate action cannot be overstated. Climate change presents material risks to investments and companies that are failing to set targets grounded in science risk losing out – and causing greater damage to the world economy.

As the interest in this campaign shows, investors want to see the accelerated corporate commitment that reflects the unprecedented challenge the planet faces. To make this possible, they expect companies to commit fully to ambitious targets grounded in science. With business resilience and adaptation to systemic risks exposed by the recent public health crisis, the tide is rapidly turning against companies not taking note of investor demands."

[1] A list of supporting investors can be found here.

[2] The methodology for defining climate-relevant companies is available here.

[3] Based on total emissions in 2018, including from land-use changes such as deforestation (55.3 gigatons): https://www.unenvironment.org/resources/emissions-gap-report-2019. Based on 2019 reported and modeled data.

[4] https://sciencebasedtargets.org/companies-taking-a…

[5] See the ‘Business case for science-based targets’

The commitment letter is available online here.

The full news can be found here.