Only 40% of high emitting companies disclose and quantify the impacts of their decarbonisation actions, a study has found.
The research from sustainability tech firm Clarity AI also found that, while over 80% of the analysed companies reported on their decarbonisation measures, only 40% of all companies made a clear quantification of the impact of these measures – with Japanese firms (67%) and European (48%) firms the most likely to do so.
The study also found that over 60% of oil and gas businesses fail to quantify their decarbonisation measures impact
Businesses in the oil and gas sector (62%) were the most likely to not quantify their decarbonisation measures, followed by those in the chemicals and automotive manufacturing (44% each) and utilities (43%) sectors.
Furthermore, oil and gas companies were also the least likely to report their decarbonisation measures and quantify their impact, with only 24% doing both. In addition, 14% of oil and gas companies do not report on decarbonisation efforts entirely.
“It’s no longer enough to look at companies’ commitments and ambitions regarding carbon reduction targets. Nowadays, investors are eager to understand the credibility of these commitments and want to know whether companies have a realistic and meaningful plan to achieve them”, said Nico Fettes, director of climate at Clarity AI.
“This information is often buried in various documents and presented in different forms. AI can efficiently retrieve and process this data at scale, providing investors with relevant and timely information for their investment and engagement processes.”
