Due to the fragmentation, inconsistency and ambiguity of some of the information provided by the assessed companies, as well as the fact that the authors did not seek to validate the public self-reported information provided by those companies, the authors cannot guarantee the factual accuracy of all information presented in this report. [...] (Section 1.2) In contradiction to the key recommendations of the Integrity Flexibility to offset scope 3 emissions is not the right solution Part of the rationale for scope 3 flexibility proposals is to Matters report by HLEG, which calls for no offsetting towards to address the challenges that companies understandably increase the flow of voluntary climate finance to climate the achievement of in. [...] None of the Increase the frequency of the validation cycle for 2030 participation of companies and needs to accommodate the five companies commit to reducing overproduction or moving corporate climate targets to align validations with the perspectives of different stakeholders when developing its away from the fast fashion business model. [...] Regardless of the type of target and the terminology used, the commitments should send a clear signal to the extent to which a company publicly discloses the for immediate action to decarbonise the value chain and avoid misleading consumers, shareholders, observers and regulators. [...] The colour of the data points represents our assessment of the integrity of company's 2030 targets, based on their sufficiency compared to sector-specific 1.5 °C aligned benchmarks, and the appropriateness of the terminology used in the pledge communication.
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Table of Contents
- Summary 4
- About the Corporate Climate Responsibility Monitor 12
- Good practice overview 13
- SECTION A — TRENDS IN CORPORATE CLIMATE RESPONSIBILITY 16
- 1 Net-zero and 2030 targets: integrity over flexibility in the crucial decade of climate action 17
- 1.1 Gradual but insufficient progress in corporate targets for 2030 and beyond 17
- 1.2 Scope 3 emissions: insufficiency and the risk of backsliding 21
- 1.3 Key challenges for improving science-aligned validations of corporate climate targets 25
- 1.4 Summary of recommendations for improving the integrity of corporate climate target setting 29
- 2 Mixed progress towards critical sector transitions 30
- 2.1 Some sectors on the right track but accelerated efforts required 30
- 2.2 Regulations and technology development driving energy transitions 36
- 3 Separating real transition pathways from false narratives 38
- 3.1 Fossil fuel phase-out and CCUS: limited traction for HLEG recommendations 38
- 3.2 Renewable electricity procurement: innovative leadership and cheap claims 41
- 3.3 Bioenergy: reliance on unsustainable solutions 46
- 3.4 Offsetting 2.0? Agrifood companies’ use of land sequestration CDR in the value chain 49
- 3.5 Neutralising residual emissions: allocation of scarce carbon dioxide removal potential 52
- 4 Where next for corporate climate accountability? 56
- 4.1 From carbon neutrality claims to more constructive climate contributions 56
- 4.2 Revision of the GHG Protocol 60
- 4.3 Evolving from voluntary initiatives to formal accountability 62
- 4.4 Summary of recommendations for the evolution of the corporate climate accountability system 65
- SECTION B — COMPANY ANALYSES 66
- 5 Automotive manufacturers 69
- 5.1 Sector highlights 69
- 5.2 Sectoral transition framework 70
- 5.3 Daimler Truck 74
- 5.4 Stellantis 76
- 5.5 Toyota 78
- 5.6 Volkswagen Group 81
- 5.7 Volvo Group 84
- 6 Electric utilities 86
- 6.1 Sector highlights 86
- 6.2 Sectoral transition framework 87
- 6.2 Duke Energy 90
- 6.3 Enel 92
- 6.4 ENGIE 94
- 6.5 Iberdrola 96
- 6.6 KEPCO 98
- 7 Fashion 100
- 7.1 Sector highlights 100
- 7.2 Sectoral transition framework 101
- 7.3 Adidas 104
- 7.4 Fast Retailing 106
- 7.5 H&M Group 108
- 7.6 Inditex 110
- 7.7 Nike 112
- 8 Food & agriculture 114
- 8.1 Sector highlights 114
- 8.2 Sectoral transition framework 115
- 8.3 Danone 118
- 8.4 Mars 120
- 8.5 Nestlé 122
- 8.6 Tesco 124
- 8.7 Walmart 126
- Glossary and abbreviations 128
- References 132
- Annex I – Companies assessed in this report 140
- Annex II – Target integrity assessments 142
- Annex III – Additional assumptions for Part A analysis 162