If Australia is to reach net zero emissions, a transformation of how companies set and act on net zero commitments is needed, finds a recent report from ClimateWorks – Corporate action for 1.5 degrees: Best practice for Australian company net zero commitments
After tracking net zero commitments of Australian companies for two years, ClimateWorks has found the majority of these commitments are not yet ambitious enough for Australia to meet international obligations, or play its part in limiting global temperature rise.
Analysis finds that:
- In their net zero commitments, companies consistently underestimate how significant organisational change needs to be from 2025 onwards if they are to be in line with limiting warming to 1.5 degrees
- Current net zero commitments are overwhelmingly focused on reducing emissions from everyday operations – but value chain, customer and financed emissions are often more significant
- Many net zero commitments are not backed by sufficient action
- Some commitments lack clarity on what emissions are included (and which aren’t), including how they are measuring reductions and against what
- Net zero commitments that rely heavily on offsets won’t be able to sustain net zero in the long term.
ClimateWorks also find that there are four principles to creating a ‘best practice’ net zero commitment aligned with limiting global warming to 1.5 degrees Celsius:
- A long-term net zero commitment by or before 2050
- At least one medium term target, that is appropriate and ambitious
- Addressing operational, value chain, customer and financed emissions
- Demonstrable, tangible near-term actions.
The report uses illustrative examples from the corporate sector to show that better quality commitments are possible, and that it matters now more than ever – while ambition is rising – to get net zero commitments right.
More information here