Thursday, 25 January 2024

‘Companies regularly set ambitious climate goals... that often quietly fizzle away’


While companies often gain positive media attention by trumpeting plans for reducing greenhouse gas emissions, many are failing to reach their climate goals, and the media rarely picks it up. There is little accountability and transparency on the outcomes of these goals, where various stakeholders, like investors and rating agencies that measure environmental, social, and governance (ESG) risk, do not penalize firms for missing these targets
Once upon a time, Aggregate Industries trumpeted ambitious plans for reducing greenhouse gas emissions. In 2018, we posted The CO2 emissions that AI ‘forgot’ in 2016 and wrote: ...
we've heard about establishing baselines before – in 2012, 2008, 2003 – and the company has consistently failed to achieve any progress against them. Let's look, for example, at how AI fared against its 2012 baseline: 
2013: "Absolute process carbon emissions have increased against the 2012 baseline" 
2014: "Absolute carbon process emissions continue to rise and are now 13% higher than the baseline year" 
2015: "Absolute process carbon emissions continue to rise and are 20% above the 2012 baseline" 
2016: No mention of baselines 
AI has talked about reducing its CO2 emissions for more than 15 years, and has achieved exactly the reverse. 
Since then, Aggregate Industries has given up reporting its CO2 figures. In 1999, the company reported 228,267 tonnes of CO2. In 2019, in the post Climate emergency? Not at Aggregate Industries. CO2 emissions increase again, we estimated the company was emitting more than 5x that amount – somewhere in the region of 1.3 million tonnes of CO2 each year. 

Aggregate Industries is part of cement conglomerate Holcim. Last year, the company claimed that for 2022, "we delivered on all our net-zero levers", and that for 2023: 
We are accelerating our net-zero journey to decarbonize Holcim. Taking a science-driven approach, we upgraded our climate targets to align them with the 1.5°C framework and validated them with the Science Based Targets initiative
Bravo. But who's checking whether any of these targets are achieved?

Perhaps these Indonesians will. As previously posted, they are taking legal action against Holcim.

 


ECCHR, the European Center for Constitutional and Human Rights, claims Holcim is "among the top 50 largest CO2 emitters in the world", and that its climate strategy is "Too little – too late": 
Climate change is happening. The clock is ticking. The global consensus is that global warming must not go beyond 1.5°C. Yet, to stand a chance of achieving this 1.5°C limit, the remaining carbon budget must be distributed fairly among all actors. Currently, the global cement industry contributes up to 8% of the global annual carbon dioxide (CO2) emissions, since the production of cement is extremely CO2 intensive. The Swiss-based cement group Holcim Ltd. is the biggest player within the cement and concrete industry, and among the top 50 largest CO2 emitters in the world. Since 1950, Holcim has emitted over 7 billion tonnes of CO2, which accounts for 0.42% of all global industrial CO2 emissions, or twice as many emissions as produced by the whole of Switzerland during the same period. Holcim has published a climate strategy which includes the ambition to become a net zero corporation by 2050. However, as this report shows, Holcim’s climate targets and business strategy are not in line with the 1.5°C limit and are therefore further exacerbating the climate crisis. 

This report looks at Holcim’s past, current and future climate impact through assessing its past and present emissions, as well as its future emission reduction plans. It explains that Holcim has largely contributed to the climate crisis due to its enormous historical emissions. The corporation’s 2021 emissions still account for three times the annual emissions of Switzerland and have risen in recent years. The report concludes that Holcim’s emission reduction targets are incompatible with the 1.5°C limit. According to the latest climate science, to stand a 50% chance of achieving the 1.5°C limit with no or limited overshoot, absolute emission reductions of 43% until 2030, 69% until 2040 and 84% until 2050 from a 2019 base year are required.
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