EY Release 2024 Global Climate Action Barometer
Overview:
Despite increasing awareness of climate risks, only 41% of global companies have published a climate transition plan, according to the 2024 EY Global Climate Action Barometer. This highlights a significant gap in corporate climate action, posing a threat to achieving global environmental goals.
The State of Climate Transition Plans
The 2024 EY Global Climate Action Barometer reveals that less than half of large companies worldwide have published a climate transition plan. This is concerning given the urgent need for businesses to mitigate climate risks and align with the goals of the 2015 Paris Agreement. While 94% of companies report some climate-related information, the quality and comprehensiveness of these disclosures remain insufficient.
Quality vs. Coverage in Climate Disclosures
The Barometer highlights a disparity between the coverage and quality of climate disclosures. Although 94% of companies provide some level of climate-related information, the quality of these disclosures is lagging, with an average score of just 54%. This indicates that many companies are not providing detailed, actionable information necessary for stakeholders to assess their climate strategies.
Long-Term Emission Targets
Another critical finding is that only 51% of companies have set long-term greenhouse gas (GHG) emission reduction targets beyond 2030. This lack of long-term commitment is alarming, as it suggests that many businesses are not fully prepared to meet the necessary decarbonization goals. Without these targets, the path to net-zero emissions remains unclear for many organizations.
Financial Commitment to Climate Action
The report also underscores a significant gap in financial commitments towards climate action. Only 4% of companies have disclosed operational expenditure related to climate initiatives, and just 17% have reported capital expenditure. This lack of financial transparency and commitment further hampers progress towards meaningful climate action.
Regional Differences in Climate Disclosures
The Barometer identifies regional variations in the quality of climate disclosures. The UK, South Korea, Japan, and parts of Europe lead with higher quality scores, while regions like the Middle East lag behind. These differences highlight the need for a more uniform approach to climate reporting and action across the globe.
The 2024 EY Global Climate Action Barometer paints a stark picture of the current state of corporate climate action. With only 41% of companies having a published climate transition plan and significant gaps in long-term commitments and financial transparency, there is an urgent need for businesses to accelerate their efforts. Achieving the goals of the Paris Agreement and mitigating climate risks will require more decisive and comprehensive action from the global corporate sector.
Read the full report here:
