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Home > Research > CDP Europe Reports > Running Hot: Accelerating Europe’s Path to Paris


Running Hot: Accelerating Europe's Path to Paris

CDP Europe Report

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The 2015 Paris agreement to limit global warming to well-below 2°C, preferably 1.5°C was a landmark in the fight against climate change. But how is Europe’s corporate sector progressing against this target?

Our CDP Europe Report 2020, Running Hot, shows that while there is strong progress in reducing emissions by many of Europe’s largest companies, progress is uneven. The current ambition of European corporates is in line with the level of emission reductions associated with global heating of 2.7 °C. [1]


The top-performing 25% of companies have reduced their absolute emissions by 15%.

Banks representing 95% of all corporate lending to European corporates have said that they want to be Paris-aligned, while many top European banks are committed to setting a science-based target. This can be a major force in accelerating company commitments to reduce emissions.

Yet this contrasts with just 8% [2] of European corporates having Scope 1-3 targets in line with a well-below 2°C rise. This has created a gap of more than €4 trillion - between the lending that banks plan to align with Paris and the currently available demand for such financing.

However, the transition to net-zero emissions is moving to the top of the agenda and over 50% of European companies by market value have now joined the Science Based Targets initiative. 56% have developed a transition plan so far – and more in the highest-impact sectors.


This €4 trillion gap has the potential to galvanize industry to greater action.

But a major problem for Europe's corporates is measuring and managing Scope 3 emissions. These are the most difficult emissions to trace yet form the vast majority of emissions impact. Less than 35% of European companies in high-impact sectors are disclosing data for their most important Scope 3.

If European corporates do not reduce emissions as fast as the Paris agreement requires, banks may need to adjust 20 to 30% of their large corporate lending portfolios to meet their own targets. However, currently only half of European financial institutions have assessed whether their client and investee strategies are aligned. More engagement – for example through the CDP SBT campaign – can help drive progress European corporates faster.



To have a good chance of meeting the Paris goal of 1.5°C, our economy should shed 50% of emissions over the next decade. This report estimates that at least 65% of companies need to be fully Paris-aligned by then – over 8 times the number today. Currently, the European corporate sector is on a temperature pathway ranging from 2.3°C to 3.0°C.

Europe is running hot. The report outlines the need for urgent and concrete action, so that Europe can make the transition to a net-zero, resource-secure economy.


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[1] This 2.7 is based on their disclosed emissions reduction targets covering and includes Scope 1, 2 and 3 emissions. Targets are translated into temperature pathways by CDP temperature ratings and weighted by total emissions.

[2] This 8% is based on their disclosed emissions reduction targets, translated into temperature pathways by CDP temperature ratings and weighted by their outstanding corporate borrowing.


CDP Europe gratefully acknowledges EU funding support. The content of this report is the sole responsibility of CDP Europe and can under no circumstances be regarded as reflecting the position of the European Union.
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