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Big companies' emissions goals are too weak, report says

(Reuters, 9 Apr 2024) The carbon emissions reduction targets of a group of the biggest listed companies are too weak collectively, meaning they are failing to play their part in preventing the most devastating impacts of global warming, a report on Tuesday showed.

A study of 51 companies by the non-profit NewClimate Institute and Carbon Market Watch found they had committed to reducing their emissions by 30% by 2030, on average, against the 43% needed to limit global warming to 1.5 degrees Celsius (2.7 Fahrenheit) by 2050.

Although 19 firms had improved their targets over the last two years, those of many were described as ambiguous, and were tied to only part of their business or relied on offsets instead of cutting emissions, leading to effective targets of 5%-20%, the report found.

Among the best performers were food company Mars, retailer H&M Group (HMb.ST), opens new tab, and energy groups Enel and Iberdrola (IBE.MC), opens new tab, which had committed to reducing their emissions by between 50% and 64%, the report said.

"Four years into the critical decade for action on climate change, some companies have understood the need to set 2030 targets that are aligned with the latest climate science and substantiated by credible measures to achieve them," NewClimate Institute's Frederic Hans said.

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Reuters, 9 Apr 2024: Big companies' emissions goals are too weak, report says