{"id":447825,"date":"2021-03-02T01:03:32","date_gmt":"2021-03-02T06:03:32","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=447825"},"modified":"2021-03-02T01:03:32","modified_gmt":"2021-03-02T06:03:32","slug":"european-companies-on-2-7-c-warming-path-according-to-cdp-and-oliver-wyman","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/european-companies-on-2-7-c-warming-path-according-to-cdp-and-oliver-wyman\/","title":{"rendered":"European Companies On 2.7 \u00b0C Warming Path, According To CDP And Oliver Wyman"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">&#8211;  Based on reported emissions targets &#8211; if achieved &#8211; European companies are in line with a 2.7 \u00b0C increase in global warming by 2100.(1)<\/h2>\n<h2 class=\"xn-hedline\">&#8211;  The top European companies by decarbonization reported a 15% drop in emissions last year &#8211; equivalent to the annual emissions of the Netherlands.<\/h2>\n<h2 class=\"xn-hedline\">&#8211;  Switzerland, Denmark and Sweden closest to Paris agreement target of &#8216;well-below 2\u00b0C&#8217;; Belgium, UK, and Italy have highest temperature, at 3.0\u00b0C.<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Almost all banks lending to European companies and many asset managers now say they want to align with Paris agreement &#8211; but under 1 in 10 European companies currently meet that standard.<\/h2>\n<h2 class=\"xn-hedline\">&#8211;  Capping global warming at 1.5\u00b0C would take an 8x increase in the current ambition level of European corporates on emissions, report estimates.<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">BERLIN<\/span>, <span class=\"xn-chron\">March 2, 2021<\/span> \/PRNewswire\/ &#8212; A <b>\u20ac4 trillion<\/b> mismatch is forming between bank lending that aims to be &#8216;<span class=\"xn-location\">Paris<\/span>-aligned&#8217; and the market for this corporate lending in <span class=\"xn-location\">Europe<\/span>, according to new analysis from EU-funded non-profit CDP Europe and global management consulting firm Oliver Wyman. <\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/1330561\/Oliver_Wyman_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/1330561\/Oliver_Wyman_Logo.jpg\" title=\"(PRNewsfoto\/Oliver Wyman)\" alt=\"(PRNewsfoto\/Oliver Wyman)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>\n        <b><br \/>\n          <i><br \/>\n            <u><br \/>\n              <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=3319368830&amp;u=https%3A%2F%2Fwww.oliverwyman.com%2Four-expertise%2Finsights%2F2021%2Fmar%2Frunning-hot.html&amp;a=Running+hot%3A+accelerating+Europe%27s+path+to+Paris%2C+\" rel=\"nofollow noopener noreferrer\">Running hot: accelerating <span class=\"xn-location\">Europe&#8217;s<\/span> path to <span class=\"xn-location\">Paris<\/span>, <\/a><br \/>\n            <\/u><br \/>\n          <\/i><br \/>\n        <\/b>released today, estimates that <b>95%<\/b> of all corporate lending in <span class=\"xn-location\">Europe<\/span> comes from banks with a <span class=\"xn-location\">Paris<\/span>-alignment ambition. <\/p>\n<p>But under 1 in 10 European companies so far have emissions targets aligned with <span class=\"xn-location\">Paris&#8217;<\/span> well-below 2\u00b0C goal \u2013 meaning banks financing these companies are far from <span class=\"xn-location\">Paris<\/span>-aligned today.<sup><sup>2<\/sup><\/sup><\/p>\n<p>The research is based on nearly <b>1,000<\/b> European companies worth around <b>80%<\/b> of <span class=\"xn-location\">Europe&#8217;s<\/span> market value disclosing data in 2020 to CDP, which runs the global environmental disclosure system, and wider market research.<\/p>\n<p>The gap is starting to close. The latest corporate data shows momentum behind better target-setting among companies, with the best decarbonizing fast. <b>56%<\/b> of companies report now having a transition plan in place \u2013 rising to over <b>three quarters <\/b>in the energy sector. Encouragingly, <b>over 50%<\/b> of European companies by market value have now joined the <b>Science Based Targets initiative<\/b>, which approves whether emissions targets are aligned with the <span class=\"xn-location\">Paris<\/span> agreement.<sup><sup>3<\/sup><\/sup><\/p>\n<p>The best companies, in terms of decarbonization, reported total emissions reductions of <b>15%<\/b> last year, and cut carbon intensity (emissions per revenue) by <b>one fifth<\/b>. <\/p>\n<p>But wide differences exist. In the steel and electric utilities sectors, the data shows the best companies are up to <b>4 times as carbon efficient<\/b> as the lowest performing. And just <b>35%<\/b> of companies in the highest-impact industries are so-far disclosing data on their most important indirect \u2013 Scope 3 \u2013 emissions, which make up a minimum (and underreported) <b>80%<\/b> of all total emissions reported.\u00a0 <\/p>\n<p>The report authors also modeled three potential scenarios for 2030, setting out alternative rates of acceleration in corporate target-setting. Based on this, capping warming at 1.5\u00b0C would take an <b>8x increase<\/b> in the current ambition level of European corporates on emissions.<sup><sup>4<\/sup><\/sup><\/p>\n<p>The scenarios are based on CDP scores, which give an overall indication of a company&#8217;s current climate performance, and CDP temperature ratings, which assigns a temperature pathway to companies based on emissions reduction targets. <\/p>\n<p>The report also points to the key role banks and investors play in achieving this target. Currently, only <b>half <\/b>of institutions assess if clients or investee companies have <span class=\"xn-location\">Paris<\/span>-aligned strategies. But without more engagement, the report estimates that in a &#8216;modest acceleration&#8217; scenario banks may need to adjust their lending portfolios by <b>20<\/b>&#8211;<b>30%<\/b> to meet their <span class=\"xn-location\">Paris<\/span> goals. <\/p>\n<p>Overall, <span class=\"xn-location\">Europe&#8217;s<\/span> corporate sector is on track for <b>2.7 \u00b0C<\/b> of global warming by the end of the century \u2013 with countries ranging from <b>2.3\u00b0C<\/b> (<span class=\"xn-location\">Switzerland<\/span>) to <b>3.0\u00b0C<\/b> (<span class=\"xn-location\">United Kingdom<\/span>, <span class=\"xn-location\">Belgium<\/span>, <span class=\"xn-location\">Italy<\/span>). <\/p>\n<p>The new report is presented today at the <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=568489149&amp;u=http%3A%2F%2Fwww.cdp.net%2Feuropeawards&amp;a=CDP+Europe+Awards\" rel=\"nofollow noopener noreferrer\">CDP Europe Awards<\/a><\/u>, held with <b>the European Investment Bank<\/b> on <b>Euronews<\/b>, where speakers include <b><span class=\"xn-person\">Angela Merkel<\/span><\/b> and the <b>European Commissioner<\/b> for Financial Stability, Financial Services and the Capital Markets Union. <\/p>\n<p>\n        <b><br \/>\n          <span class=\"xn-person\">Maxfield Weiss<\/span>, Executive Director of CDP Europe, <\/b>said of the results:\u00a0\u00a0 <\/p>\n<p>\n        <i>&#8220;The European corporate sector is running hot. Based on current ambition, it&#8217;s on a 2.7\u00b0C path of warming \u2013 over a degree more than climate science says we need to achieve to prevent climate change&#8217;s most catastrophic impacts. That leading corporates across many sectors are now setting ambitious targets and delivering emissions reductions is positive, and shows rapid decarbonization is doable. But with less than 1 in 10 companies having ambitious enough targets, our new data shows we need far more action from corporates and financial institutions to make good on our goals. Banks and investors have their own big ambitions: now we need them to engage companies more to raise the level of disclosure and action so we accelerate <span class=\"xn-location\">Europe&#8217;s<\/span> path to <span class=\"xn-location\">Paris<\/span> and to deliver the European Green Deal.&#8221;<\/i>\n      <\/p>\n<p>\n        <b><br \/>\n          <span class=\"xn-person\">James Davis<\/span>, Partner, Financial Services and Head of Sustainable Finance Europe, <span class=\"xn-person\">Oliver Wyman<\/span>, <\/b>added:<\/p>\n<p>\n        <i>&#8220;This year&#8217;s paper includes encouraging developments, with more than half of companies setting out transition plans, and many making real strides in cutting emissions. But it also shows how much we need to hasten the pace if we are to hit the <span class=\"xn-location\">Paris<\/span> targets. Many of the region&#8217;s leading financial institutions have set out a big ambition to align their lending and investments with <span class=\"xn-location\">Paris<\/span> and that will help create a virtuous circle &#8211; those companies who are getting ahead of the transition should find it easier to raise capital.&#8221;<\/i>\n      <\/p>\n<p>The full CDP Europe Report is available for download here: <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=1544937601&amp;u=http%3A%2F%2Fwww.cdp.net%2Feuropeanreport&amp;a=www.cdp.net%2Feuropeanreport\" rel=\"nofollow noopener noreferrer\">www.cdp.net\/europeanreport<\/a><\/u>\u00a0<\/p>\n<p>\n        <b>About CDP<\/b>\n      <\/p>\n<p>CDP is a global non-profit that runs the world&#8217;s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with over 590 investors with <span class=\"xn-money\">$110 trillion<\/span> in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 10,000 organizations around the world disclosed data through CDP in 2020, including more than 9,600 companies worth over 50% of global market capitalization, and over 940 cities, states and regions, representing a combined population of over 2.6 billion. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.<\/p>\n<p>\n        <b>About <span class=\"xn-person\">Oliver Wyman<\/span><\/b>\n      <\/p>\n<p>\n        <span class=\"xn-person\">Oliver Wyman<\/span> is a global leader in management consulting. With offices in 60 cities across 29 countries, <span class=\"xn-person\">Oliver Wyman<\/span> combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. <span class=\"xn-person\">Oliver Wyman<\/span> is a business of Marsh &amp; McLennan Companies [NYSE: MMC]. For more information, visit <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=2423354488&amp;u=http%3A%2F%2Fwww.oliverwyman.com%2F&amp;a=www.oliverwyman.com\" rel=\"nofollow noopener noreferrer\">www.oliverwyman.com<\/a><\/u>. Follow <span class=\"xn-person\">Oliver Wyman<\/span> on Twitter @OliverWyman.<\/p>\n<p><\/p>\n<p>\n        <sup>1<\/sup>\u00a0Based on disclosed emissions reduction target data analyzed by CDP and weighted by total emissions, using the <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=3886795063&amp;u=https%3A%2F%2Fwww.cdp.net%2Fen%2Finvestor%2Ftemperature-ratings&amp;a=CDP+temperature+ratings+dataset\" rel=\"nofollow noopener noreferrer\">CDP temperature ratings dataset<\/a><\/u>. <br \/><sup>2<\/sup>\u00a0Under 10% of companies, weighted by the amount they borrow from banks.<br \/><sup>3<\/sup>\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3083064-1&amp;h=560309044&amp;u=https%3A%2F%2Fsciencebasedtargets.org%2F&amp;a=https%3A%2F%2Fsciencebasedtargets.org%2F\" rel=\"nofollow noopener noreferrer\">https:\/\/sciencebasedtargets.org\/<\/a><br \/><sup>4<\/sup>\u00a0The potential scenarios modelled suggest that to reach the 1.5\u00b0C target, a minimum of 65% of European companies would need to have targets in line with at least well-below 2 \u00b0C, and 30% would require 1.5\u00b0C targets. This compares to today&#8217;s 8% and 7% figures. <\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/1447273\/CDP_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/1447273\/CDP_Logo.jpg\" title=\"A \u20ac4 trillion mismatch is forming between bank lending that aims to be \u2018Paris-aligned\u2019 and the market for this corporate lending in Europe, according to new analysis from EU-funded non-profit CDP Europe and global management consulting firm Oliver Wyman.\" alt=\"A \u20ac4 trillion mismatch is forming between bank lending that aims to be \u2018Paris-aligned\u2019 and the market for this corporate lending in Europe, according to new analysis from EU-funded non-profit CDP Europe and global management consulting firm Oliver Wyman.\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NY95384&amp;sd=2021-03-02\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/european-companies-on-2-7-c-warming-path-according-to-cdp-and-oliver-wyman-301238069.html\">http:\/\/www.prnewswire.com\/news-releases\/european-companies-on-2-7-c-warming-path-according-to-cdp-and-oliver-wyman-301238069.html<\/a><\/p>\n<p>SOURCE  <span class=\"xn-person\">Oliver Wyman<\/span><\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=NY95384&amp;Transmission_Id=202103020100PR_NEWS_USPR_____NY95384&amp;DateId=20210302\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8211; Based on reported emissions targets &#8211; if achieved &#8211; European companies are in line with a 2.7 \u00b0C increase in global warming by 2100.(1) &#8211; The top European companies by decarbonization reported a 15% drop in emissions last year &#8211; equivalent to the annual emissions of the Netherlands. &#8211; Switzerland, Denmark and Sweden closest to Paris agreement target of &#8216;well-below 2\u00b0C&#8217;; Belgium, UK, and Italy have highest temperature, at 3.0\u00b0C. &#8211; Almost all banks lending to European companies and many asset managers now say they want to align with Paris agreement &#8211; but under 1 in 10 European companies currently meet that standard. &#8211; Capping global warming at 1.5\u00b0C would take an 8x increase in the current ambition level &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/european-companies-on-2-7-c-warming-path-according-to-cdp-and-oliver-wyman\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;European Companies On 2.7 \u00b0C Warming Path, According To CDP And Oliver Wyman&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-447825","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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