This week, as we are in the midst of COP 26, we would like to reference a quarterly report MSCI publishes on how listed companies are making progress towards Net Zero. The most recent one was published in October, and it has some interesting highlights we want to share with you below. We recommend reading the full report if you want to see tables on the 10 largest emitters in MSCI ACWI IMI, the 15 largest listed companies by market cap in the MSCI ACWI IMI that improved their emissions disclosure, MSCI’s estimate of the 10 largest emitters that have not reported emissions data, and the 10 companies in the MSCI ACWI IMI that have published the most thorough corporate decarbonization targets.
- “Less than half (43%) of listed companies align with a 2°C temperature rise, which falls short of the Paris Agreement goal of keeping warming well below 2°C, preferably to no more than 1.5°C, above pre-industrial levels.”
- “Less than 10% of listed companies align with a 1.5°C temperature rise, which science tells us offers the best chance of averting a climate disaster.”
- “Some sectors are running hotter than others — the energy, materials and utilities sectors emit more and may be harder to decarbonize than sectors such as health care, financials and communication services. But there are high-emitting companies in every sector.”
- “Though companies in developed economies are projected to become more carbon efficient than those in emerging economies, no region yet aligns with the Paris Agreement target.”
- “Gaps also remain in companies’ disclosure of their carbon emissions. Some companies are broadening their emissions reporting and setting decarbonization targets that align with global goals. Others have yet to disclose their emissions at all.”
The situation surrounding climate change is not only in the hands of publicly listed companies (not even close), but according to the CDP, over 30% of global emissions come from companies who are funded by institutional investors.
The situation in Mexico is even worse than average. The Climate Action Tracker ranks the current policies and action as highly insufficient and based on the fair share the country should take on, as critically insufficient. This should come as no surprise given the public agenda is far from pushing clean energy development. As for corporate commitments, there are not many, but here are four good examples of companies leading the way within their industries in the fight against climate change:
- Coca Cola FEMSA – the first Mexican company to align its emission targets with the Paris agreement under Science Based Targets’ framework, it plans to reduce 50% of Scope 1 and Scope 2 emissions and 20% of its value chain emissions by 2030. It is also committed to using 100% renewable energy.
- Cemex – plans to reach Net Zero by 2050, reducing 40% of its emissions by 2030. Its goal is aligned with Science Based Targets, and the company is part of Business Ambition for 1.5°C.
- Banorte – committed to reducing 100% of its absolute CO2 emissions by 2050 and 50% of them by 2030. Part of the Net Zero initiative of the Banking Alliance and aligned with Science Based Targets.
- Bimbo – committed to Net Zero Carbon Emissions by 2050 with three intermediate goals: eliminating Scope 2 by 2025, reducing 50% of Scope 1 or direct emissions and 28% of Scope 3 or other indirect emissions, by 2030. The first Mexican food company to commit to Business Ambition for 1.5°C and join the UN’s Race to Zero Campaign. Targets were validated by Science Based Targets.
There are other companies that are aligned with Science Based Targets (Criotec, America Movil, GCC, Orbia, FUNO, and Nemak). Some of them are still in the process of setting formal targets (companies have 24 months from the moment they commit to have their targets approved by Science Based Targets), while others have set targets which not necessarily take them all the way to Net Zero, but to an emissions level that is still in line with the 1.5°C warming path.
I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.
Best,
Marimar
CEO, Miranda ESG
Contacts at Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
Esta semana, ya que estamos en medio de la COP 26, queremos hacer referencia a un reporte trimestral de MSCI sobre cómo las empresas listadas en bolsa están progresando hacia la meta de Net Zero. El reporte más reciente se publicó en octubre, y tiene algunos puntos interesantes que queremos compartir con ustedes. Recomendamos que leas el reporte completo si quieres ver las tablas sobre los 10 mayores emisores de carbono del MSCI ACWI IMI, las 15 empresas más grandes por capitalización bursátil del MSCI ACWI IMI que han mejorado su divulgación de emisiones, la estimación de MSCI sobre los 10 mayores emisores que aún no han comunicado datos sobre sus emisiones y las 10 empresas del MSCI ACWI IMI que han publicado los objetivos de descarbonización corporativa más exhaustivos.
- “Less than half (43%) of listed companies align with a 2°C temperature rise, which falls short of the Paris Agreement goal of keeping warming well below 2°C, preferably to no more than 1.5°C, above pre-industrial levels.”
- “Less than 10% of listed companies align with a 1.5°C temperature rise, which science tells us offers the best chance of averting a climate disaster.”
- “Some sectors are running hotter than others — the energy, materials and utilities sectors emit more and may be harder to decarbonize than sectors such as health care, financials and communication services. But there are high-emitting companies in every sector.”
- “Though companies in developed economies are projected to become more carbon efficient than those in emerging economies, no region yet aligns with the Paris Agreement target.”
- “Gaps also remain in companies’ disclosure of their carbon emissions. Some companies are broadening their emissions reporting and setting decarbonization targets that align with global goals. Others have yet to disclose their emissions at all.”
El cambio climático no sólo está en manos de las empresas listadas en la bolsa (ni cerca), pero según el CDP, más del 30% de las emisiones mundiales se originan por empresas financiadas por inversionistas institucionales.
La situación en México es aún peor que el promedio. El Climate Action Tracker califica las políticas y acciones actuales como altamente insuficientes y, con base en la cuota justa que debería asumir el país, como críticamente insuficientes. Esto no debería ser sorpresa, ya que la agenda pública de México está lejos de impulsar el desarrollo de energías limpias. En cuanto a los compromisos corporativos, no hay muchos, pero aquí están cuatro buenos ejemplos de empresas que lideran el camino dentro de su industria en la lucha contra el cambio climático:
- Coca Cola FEMSA – la primera empresa mexicana en alinear sus objetivos de emisiones con el acuerdo de París bajo el marco de Science Based Targets, planea reducir el 50% de sus emisiones Alcance 1 y Alcance 2, además del 20% de las emisiones de su cadena de valor para 2030. También se ha comprometido a utilizar energía 100% renovable.
- Cemex – planea alcanzar emisiones netas cero en 2050, reduciendo el 40% de sus emisiones para 2030. Su objetivo está alineado con Science Based Targets, y la empresa forma parte de Business Ambition for 1.5°C.
- Banorte – se ha comprometido a reducir el 100% de sus emisiones absolutas de CO2 para 2050 y el 50% de las mismas para 2030. Forma parte de la iniciativa Net Zero de la Banking Alliance y está alineada con Science Based Targets.
- Bimbo – se comprometió a lograr cero emisiones netas de carbono para 2050 con tres objetivos intermedios: eliminar el Alcance 2 para 2025, y reducir el 50% del Alcance 1 o emisiones directas y el 28% del Alcance 3 u otras emisiones indirectas, para 2030. Es la primera empresa mexicana de alimentos que se compromete con Business Ambition for 1.5°C y se une a la campaña “Race to Zero” de la ONU. Los objetivos fueron validados por Science Based Targets.
Hay otras empresas que están alineadas con Science Based Targets (Criotec, América Móvil, GCC, Orbia, FUNO y Nemak). Algunas de ellas todavía están en proceso de establecer objetivos formales (las empresas tienen 24 meses desde el momento en que se comprometen a que sus objetivos sean aprobados por Science Based Targets), mientras que otras han establecido objetivos que no necesariamente las llevan hasta Net Zero, pero sí a un nivel de emisiones que se mantiene en línea con la trayectoria de calentamiento de 1.5°C.
Espero que esto te haya parecido interesante. Como siempre, si hay algo en lo que pudiéramos ayudar, o si hay un tema de ESG del cual quisieras saber más, por favor háznoslo saber.
Saludos,
Marimar
CEO, Miranda ESG
Contactos en Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
