Missing the Mark:

CDP temperature ratings - 2022 analysis

As we approach COP27, this briefing with Oliver Wyman uses CDP’s latest temperature ratings to assess whether current corporate emissions reduction targets are ambitious enough to meet the Paris Agreement’s 1.5°Celsius goal.

Amid a challenging global context of energy insecurity, rising inflation, and extreme weather in many regions, COP27’s vision to keep the Paris Agreement’s 1.5°Celsius target alive is more critical than ever.

The G7’s private sector has an important role to play in that effort. Strong momentum in 2021, particularly in the runup to last year’s COP26, saw the number of corporates committing and setting climate targets increase rapidly.

Yet, our analysis shows that the greenhouse gas (GHG) emissions reduction targets publicly disclosed by companies in G7 economies are still only ambitious enough to align with a 2.7°C decarbonization pathway.

Fast progress on target setting in Europe has ‘cooled’ the temperature of the European economy 0.3°C since 2021. However, the emissions reduction targets publicly disclosed by European companies are now aligned with a 2.4°C decarbonization pathway.

The analysis shows a clear and consistent outperformance by European companies over North American and Asian peers across all industries. Based on Scope 1 and 2 emissions, companies headquartered in North America are collectively on a path to a 2.5°C rise in temperature, while companies headquartered in Asia are on a path to 3°C. Both are significantly higher than Europe’s 2.4°C.

How ambitious are emissions reduction targets in countries and industries around the world? Find out in the 2022 CDP temperature ratings briefing.