Growing gap between corporate emissions and Paris climate goals

It's been a year since the Paris (COP21) climate agreements were forged.

A new report from Thomson Reuters sustainability shows there are already gaps between emissions goals set by the Paris climate agreements, and greenhouse gas emissions of the top 3,500 companies globally.

The highly detailed reports tracks greenhouse gas emissions from the top 3,500 corporate emitters globally. One of the key findings in the report is that since 2011 a significant gap has developed between where emissions should be to keep in line with the Paris goals, and actual emissions over the past few years.

From 2011 to 2015 there is a substantial gap of 9.5% between the Global 3500’s emissions and the reductions required to stay within a 2-degree C global temperature rise. In other words, the Global 3500 are emitting almost 10% more than what they should be (and 12.3% more than a 1.5-degree pathway).

The Global 3500 companies represent approximately a fifth of global GHG emissions annually, and half of global annual GDP on a revenue basis. Since 2011, Global 3500 emissions  have grown 3.9% instead of decreasing the required 5.6%13 (1.4%/year x 4 years = 5.6%). This reduction represents a 9.5% gap between what has been achieved and what is required to stay under 2 degrees C of warming, and 12.3% to stay under 1.5 degrees C (2.1%/year x 4 years = 8.4% + 3.9% = 12.3%) as depicted in Figure 1.

Is your company a 'Green Dot?'

I spoke Monday with one of the lead authors for the report, Tim Nixon who is Managing Editor of Thomson Reuters Sustainability publishing platform based in the Twin Cities.

One ray of hope Tim sees from the report? There are many companies who are growing while still reducing greenhouse gas emissions consistent with Paris climate accord goals.

This so called 'decoupling' of growth and emissions is seen by climate scientists and economists as key to forging a climate friendly environment in the future. Companies in the top 50 emitters globally that are showing growth while reducing carbon emissions consistent with COP21 goals are shown as 'green dots' on the image below.

A look at U.S. companies shows 60% of U.S. companies are above the 'decoupled growth line' but just 25% are achieving 'sustainable growth.'

Great Carbon Leap?

To my eye the report shows both positives and areas of concern for greenhouse emissions in the atmosphere going forward. Many companies are already showing sustainable 'climate friendly' growth. But many more have a long way to go the achieve what might be called the 'Carbon Friendly Industrial Revolution 2.0.'

The report concludes:

These findings suggest that some of the greatest opportunities therefore exist in developing countries. Together with the developed world economies, we must innovate, regulate and invest to a achieve a Great Carbon Leap, leading to a new low-carbon paradigm for economic prosperity and environmental sustainability.

We are the last generation to be able to do something about climate change before global warming produces irreversible impacts on terrestrial and marine ecosystems, biodiversity and human life as we

know it. Each of us can play an important role, whether it’s with our vote, our investments, our consumption patterns, or our value chains, both personal and corporate. Meaningful pathways remain if acted upon immediately, starting with the business community and the investor-stakeholders who increasingly require transparency and sustainable growth.

(In the interest of full disclosure, I was asked to provide some brief numbers for the state of earth's climate for the report. I was not compensated for this conturbution.)