- Analysis of nearly 200 companies’ emissions targets projects Italian economy on 2.8°C temperature pathway;
- Just 20% of the companies have detailed emissions reduction targets in place;
- Over past 5 years, Italian companies have cut operational emissions by 22%;
- But with current level of action, Italian companies will cut emissions by 3.3% per year until 2030 – far off track of the 4.2% needed to reach the Paris agreement goals.
October 5, 2021 (Berlin / Rome): Analysis of 194 Italian companies has found that just 10% have detailed mid-term emissions reduction targets in place and that the corporate sector is far off track for meeting the 1.5°C goal of the Paris agreement.
Released today by non-profit CDP as part of a project funded by the Italian Ministry For Ecological Transition, the report uses 2020 CDP disclosure data and CDP temperature ratings, which analyse companies’ emissions targets and translates them into a warming path. The overall temperature score for Italy is 2.8°C.
Though the Italian companies analysed have reduced their operational (Scope 1 + 2) emissions by 22% over the past five years, continuing at this pace would mean the Italian corporate sector decarbonizes at a much lower rate (3.3% per year) than that needed to meet the Paris agreement (4.2% per year).
Though environmental transparency has increased substantially in Italy over the past year – from 29 companies reporting data in 2010 to 240 today – ambitious target-setting and action to align with the Paris agreement is lacking.
In the analysis sample (based on 2020 data), just 27 companies in Italy have committed to setting a science-based target to reduce emissions, and just 7 have approved targets, including Enel, Salvatore Ferragamo, Sofidel, Daniele & C Officine Meccaniche and Pirelli.
But most companies (80%) do not disclose targets with enough information to be accurately measured.
Maxfield Weiss, Executive Director CDP Europe, commented:
“Italy’s corporate sector needs to step up with more ambitious targets to accelerate emissions reductions. The good news is that some of the highest impact companies in Italy are showing that ambitious decarbonization in line with the Paris agreement is possible. Now we need to see this level of ambition across the board. As the EU economy looks to kick start a green recovery and implement the key actions to achieve at least a 55% cut in emissions over the next decade, the Italian economy is key. Not only is it one of the biggest, but Italy is the largest recipient of recovery funds in Europe. This provides a must-take opportunity to drive the corporate sector to upgrade its ambition and align targets and transition plans with the Paris agreement's 1.5 ºC goal.”
The analysis also shows that very few companies in Italy have a particular influence on the country’s overall trajectory. Encouragingly, nearly 50% of the emissions of the group of companies analysed are aligned to a 1.5 ºC pathway – largely because Enel has an approved science-based target.
The Science Based Targets initiative, the global standard for target-setting that approves whether targets are ambitious enough to meet the Paris agreement’s temperature goals, recently revised its criteria to only accept 1.5 ºC-aligned targets.
Last week, over 220 financial institutions with $29 trillion in assets publicly called on 1600+ companies worldwide – including Buzzi Unicem, Ferrari and Telecom Italia - to set 1.5C emissions targets. The group of financial institutions included some of the world’s biggest, like Eurizon Capital, Anima, Amundi, Credit Agricole, Legal & General Investment Management, Insight Investment Management and Allianz.
The policy briefing may be downloaded here.
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 590 investors with over $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 10,000 organizations around the world disclosed data through CDP in 2020, including more than 9,600 companies, worth over 50% of global market capitalization, and over 940 cities, states and regions, representing a combined population of over 2.6 billion. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
PRESS ENQUIRIESJoshua Snodin, Senior Communications Manager, [email protected]
 Cementir Holding also has an approved science-based targets in place, but due to timing of the analysis was not included in the report. The list of companies with SBTs is based on the CDP sample of disclosing companies. The full list of all Italian companies with science-based targets is available here.