While all major US electric utilities and 17 of the 31 largest fossil fuel companies have now set net-zero emissions targets, many have goals that lack credibility, a new survey says.
In addition, the analysis found that only one of the 15 largest US power companies included in the 2023 edition of the Net Zero Tracker's analysis, Duke Energy Corp., has developed a credible "detailed plan" for how to get to net zero.
The group defined such a plan as one that is publicly available and sets progression milestones, measures all emission categories covered by reduction targets, disseminates timely information about those reductions, specifies the means to cut emissions, and regularly reviews mitigation measures and their effect on emissions.
The Net Zero Tracker report is a collaboration between Oxford University, the Data-Driven EnviroLab at the University of North Carolina-Chapel Hill, the NewClimate Institute in Germany and the UK nonprofit Energy & Climate Intelligence Unit.
In all, 4,075 companies across all major economic sectors and governments are included in the global survey released June 12 at the Bonn Climate Change Conference.
"Corporate targets have increased but we need to see more robustness of those targets, particularly for fossil fuel companies where targets have become widespread but [not] aligned to a 1.5-degree transition," Thomas Hale, an associate professor at Oxford University and a co-author of the report, said during a press conference to discuss the findings. "There's a huge need for those who haven't yet gotten on the journey to begin that path."
Under the Paris Agreement on climate change, nations agreed to try to keep global warming to 1.5 degrees C to avoid the worst effects of climate change. To do so, the researchers said nations must do more to wean themselves off fossil fuels, as the International Energy Agency and other organizations are urging them to do.
Duke Energy is still reviewing the Net Zero Tracker report and welcomes "the opportunity to discuss the importance of transparently addressing climate change," spokesperson Shawna Berger said in an email. She added that the company plans to keep investors and other stakeholders appraised "so they can chart our progress and help to hold us accountable."
A mixed bag
Across economic sectors, the Net Zero Tracker reported, 49% of US companies have adopted net-zero targets, compared with 79% of their EU counterparts. In addition, few US companies in the survey, including Duke Energy, had set "complete" goals for addressing indirect emissions associated with their products or services, known as Scope 3 emissions.
Scope 3 emissions accounted for 75% of emissions from US electric utilities in 2019, according to S&P Global data, and up to 95% of emissions from the oil and gas sector.
Among utilities, Sempra, AES Corp., Entergy Corp. and the Public Service Enterprise Group Inc. have set Scope 3 goals that include the companies' full value chain, including downstream and upstream emissions, Net Zero Tracker reported. Among oil and natural gas producers, Marathon Oil Corp., Phillips 66 and Occidental Petroleum Corp. were listed as including Scope 3 targets in their climate plans.
But because companies in the fossil fuel production sector lack plans for phasing out their core business, the researchers said their targets are "misaligned with the scientific and policy consensus."
Not a single country with large mining or drilling industries has yet pledged to phase out production of coal, natural gas or oil.
On a more positive note, the Net Zero Tracker found that more than 70 countries now have net-zero targets mandated by legislation or an official policy covering two-thirds of total global greenhouse gas emissions, up from 7% of emissions in late 2020.
The Biden administration's climate goals largely contributed to that broader emissions coverage. Although US emissions have decreased 20% since their peak in 2005, largely due to the shift away from coal-fired power plants, the US remains the second-largest emitter after China.
Another positive development cited by the report is that standards for voluntary emission reductions, which companies use in the absence of mandatory rules, are becoming harmonized and uniform.
"There's certainly enough here to get the organizations started on mapping out their transition plans," Kaya Axelsson, an Oxford University fellow and another co-author of the report, said during a press conference. "However, it's incredibly important that to level the playing field and in order to avoid confusion ... that regulation and policy step in to close these gaps."
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