The REP Wrap: ‘36% of firms increasing climate ambitions’

Your weekly summary of corporate sustainability news.

More than a third of the 4,000 firms that reported to CDP in 2024 said they were increasing their climate ambitions, compared with 16% that are decelerating. According to PwC’s second annual ‘state of decarbonisation’ report, “many companies are struggling to execute and make progress on their commitments… but the real story isn’t one of retreat — it’s one of quiet, consistent action”. Less than half of companies assessed are on track to meet their Scope 1 targets – lower than the 54% on target for Scope 3, the report found. The median revenue of companies making commitments decreased from $3.6bn in 2020 to $1.3bn last year, as those further along the supply chain move to meet sustainability expectations. 

Deloitte has reportedly exited the Net Zero Financial Service Providers Alliance – the sub-group of the Glasgow Finance Alliance for Net Zero (GFANZ) for entities like stock exchanges, auditors, law firms, data providers and ratings agencies. The removal of the auditing giant’s name from the alliance’s list of members comes shortly after its US business decided to “sunset [its] workforce and business aspirational diversity goals, our Diversity, Equity, and Inclusion (DEI) Transparency Report, and our DEI programming”. Moody’s left the Net Zero Financial Service Providers Alliance in November. 

Germany has enshrined its national commitment to reaching net zero by 2045 into its constitution. It is believed to be the first time a country has done so, after a Parliamentary vote on Tuesday.   

The Transition Pathway Initiative (TPI) has released data about the carbon performance of the world’s biggest airlines, carmakers and shipping companies. The body, which runs out of the London School of Economics, provides information and analysis to investors. The update covers 89 firms across the transport sector, representing a combined market capitalisation of more than $2.1trn.  

EU sustainability standard setter EFRAG has teamed up with environmental reporting platform CDP to produce a map showing how climate disclosures made under the Corporate Sustainability Reporting Directive, known as ESRS E1, align with CDP’s corporate questionnaire.

Only a fifth of companies have plans in place to adapt to the physical impacts of climate change, according to analysis by S&P.