100 Largest U.S. Public Companies Making Progress Towards Net Zero Emissions, Though Critical Gaps Remain
More companies are making climate disclosures and targets, but emissions are still on the rise
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—NOV. 2, 2023—As You Sow released its second annual Road to Zero Emissions Report today grading the largest 100 U.S. companies on their progress toward net zero. Compared to last year’s report, 66% of the companies improved their overall grade. However, many still lack value-chain (Scope 3) emissions disclosure and actions demonstrating progress in achieving the emissions reductions necessary to align with global 1.5°C goals.
The report shows that establishing a net zero by 2050 goal and disclosing full-scope emissions is becoming more common. However, only six of the 100 companies received an overall grade of “A” or “A-”: Apple, Nike, Alphabet, Oracle, Colgate-Palmolive, and Trane Technologies. These six companies demonstrated robust progress in the three “pillars” that comprise companies’ overall score: GHG emissions disclosure, GHG target setting, and GHG reductions.
Only Fourteen of the 100 companies received a “B-” or better overall grade. Notably, only 7% of companies received an "A" for reducing their most significant sources of emissions in line with 1.5°C.
“In a year marked by catastrophic climate impacts and related costs, where whole cities were burned to the ground or engulfed by floods, this report highlights some good news -- company progress on GHG emissions reporting and adoption of net zero GHG emission reduction goals. More importantly, however, it underscores the continued lack of progress by companies in actually reducing their emissions,” said Danielle Fugere, president of As You Sow. “In fact, many companies reported emissions going in the wrong direction.”
The increase in reported emissions by companies noted in the report is due in part to the prevalence of Scope 3 value-chain emissions. While some sectors may wield more influence in reducing Scope 3 emissions than others, it remains vital for all companies to assess, disclose, and begin addressing these emissions to meet global 1.5°C-aligned goals.
“Investors are paying increased attention to climate leaders and laggards, especially those companies that fail to address their full range of product and value chain emissions,” said David Shugar, climate and energy manager at As You Sow. “Full scope emissions disclosure takes work but is possible in every industry and is a necessary first step toward actual emissions reduction. More importantly, it drives emissions reductions across the economy.”
“Recent regulatory changes from Europe, Korea, and the U.S., among others, underscores the importance of companies transitioning their business activities toward low carbon emissions across the board,” said Shugar. “Companies lagging on climate-related action, including emissions reductions, are increasingly questionable value propositions for investors.”
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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.