Source: MIL-OSI Submissions
Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today.
The snapshot report follows the Government’s release of the Emissions Reduction Plan discussion document last week and ahead of the United Nations Climate Change Conference (COP26) in Glasgow to accelerate action towards the goals of the Paris Agreement.
“While it is for governments to set emissions budgets, targets, and plans, it is businesses that will primarily lead the action needed to transition to a low-emissions economy, as well as providing the vast majority of the required investment,” Coalition convenor and CEO of Z Energy Mike Bennetts says.
“That’s why it’s encouraging that our signatories have committed a collective $9.5 billion for investments in reducing emissions from our business operations over the next five years.”
The snapshot report also shines a light on signatories’ individual and collective progress in delivering the Coalition’s commitments as detailed in the 2017 and 2019 statements signatories sign up to.
“Our signatories continue to lead on climate action and 51 signatories reduced their gross emissions over the past year. Where we have been able to compare signatories that have reported in two consecutive years, collective overall scope 1 and 2 emissions were down by 7 per cent, with improvements in energy efficiency, EV uptake, and Covid-19 related impacts noted by signatories as key contributors to these reductions,” Mike says.
“This year is also the first time we have published a snapshot of each signatory’s scope 1 and 2 emissions, along with their target ambition- to increase transparency and to hold each other to account for our climate action.
“Climate action presents one of the greatest business opportunities of our time and those at the forefront of the transition will be the ones who benefit most.
“While business can do a lot on its own, neither our signatories nor the Government can meet Aotearoa New Zealand’s emissions reduction goals individually.
“Clear and enduring Government policies are vital to giving businesses the confidence and certainty we need to invest and innovate as we strive towards achieving our climate targets.
“We will continue to work alongside the Government as it develops Aotearoa New Zealand’s first Emissions Reduction Plan to advocate for policies and actions that enable us to deliver on the commitments we have announced today.
“We are also reviewing our existing level of ambition with an intention to update our statements to ensure our signatories continue to demonstrate climate leadership as science and policy evolves.”
Other key facts from the snapshot report include:
-Signatories report a collective $750 million investment in developing products or services to reduce end-user emissions over the next five years.
-75 per cent of signatories had their emissions inventory independently verified.
-28 per cent of signatories assessed and disclosed their climate change risks and another 55 per cent are working on it.
-80 per cent of signatories are considering climate change in their investment decisions and planning.
-95 per cent of signatories are reporting their scope 3 emissions (broader emissions associated with indirect business operations such as business travel, freight, emissions from suppliers and the emissions associated with the use of their products).
-All signatories are now meeting the 2017 statement to measure and publicly report on their emissions, set a public emissions reduction target consistent with keeping within 2 degrees of warming, and work with suppliers to reduce their emissions.
-31 signatories have also signed up to the Coalition’s higher ambition 2019 statement to pursue efforts in line with the Paris Agreement temperature goals, disclose and report on climate risk, have their emissions reduction targets grounded in science and independently verified, and work with their people and suppliers to reduce their emissions. This is up from 18 in the previous year.
-22 of the 26 recommendations in the Coalition’s joint submission with the Sustainable Business Council to the Climate Change Commission were included in the Commission’s final report to Government in June.
The Climate Leaders Coalition was formed in 2018 with 60 original signatories and a mission of having business CEOs leading the response to climate change through collective, transparent, and meaningful action on mitigation and adaptation. The Coalition now has 105 signatories who collectively account for almost 60 per cent of Aotearoa New Zealand’s gross emissions, around 38 per cent of GDP, and employ almost 220,000 people. The purpose of the Coalition is to build irreversible momentum in Aotearoa New Zealand towards a zero-carbon future. By 2025, the Coalition’s vision is that Aotearoa New Zealand’s businesses are influencing climate action in their value chains, creating momentum so other businesses must act on climate change, and maintaining pressure on governments of all stripes to adopt policies and make investments that enable the transition to a zero-carbon economy.
-Signatories to the original 2017 Statement committed to setting a public emissions reduction target consistent with keeping within two degrees of warming. At the Coalition’s first anniversary in 2019 a more ambitious statement was launched that signatories could voluntarily sign up to further pursue efforts to limit the temperature increase to 1.5 degrees to be consistent with the Paris Agreement. Signatories signing up to the 2019 Statement must meet the commitment within two years of signing up or by July 2023, whichever is earliest. New signatories must now be meeting the 2017 Statement at the time of joining.