Climateworks Centre has analysed the ASX200’s climate commitments against a 1.5°C trajectory, in line with mitigating the worst impacts of climate change.
This report assesses the publicly available climate commitments (as at March 2022) of Australia’s largest companies by market capitalisation, and measures these commitments against a decarbonisation pathway compatible with limiting global warming to 1.5°C.
The analysis covers the 187 companies listed on the ASX200 which have operations in Australia, and assesses their climate commitments against Climateworks Centre’s Decarbonisation Futures ‘1.5C All-in’ decarbonisation pathway for their sector.
Long-term net zero by 2050 commitments have been set by 45% of ASX200 companies, and these cover the vast majority, around 96%, of reported scope 1 and 2 emissions.
Most of these commitments come from the high-emitting sectors, such as utilities, metals and mining and oil, gas and consumable fuels, where 78% of companies have set a net zero scope 1 and 2 commitment.
This report identifies opportunities for Australian companies to strengthen and bring forward climate targets, and to extend these to indirect scope 3 emissions.
Scope 3 accounts for a significant proportion of emissions. Of these we find 12% have set a net zero target covering scope 3 emissions with 9% aligning with a 1.5°C trajectory.
Lower emitting sectors are an area of growing importance. Many of the 55% of ASX200 companies with no scope 1 and 2 net zero commitments are in low-emitting sectors. As a consequence, the proportion of emissions from these sectors are expected to increase by 2050.
Overall, the analysis finds that based on current targets and commitments, the ASX200 is on track to overspend its carbon budget by 36%.
A credible 1.5°C pathway exists for Australia. Following it requires an ‘all-in’ effort and near-term action, particularly from Australia’s leading corporates assessed here.
This 2022 Net Zero Momentum Tracker report makes visible what it will take for corporate Australia to be on that pathway.
Correction: The published document cites Transurban Group as not having commitments addressing scope 3 emissions, and Graincorp Limited as not having a long term scope 1 and 2 target, nor a long term scope 3 emissions target in March 2022. This was based on out of date data. Both companies have aligned long term scope 1, 2 and 3 commitments.
For the most up to date analysis visit the interactive Net Zero Momentum Tracker.