With more than half of the Fortune Global 500 setting ambitious goals for emissions reduction, environmental awareness is a growing trend among big businesses.
- Of the Fortune Global 500, 63% have set emission reduction goals for 2050, an increase from last year.
- And 47% have set goals for 2030.
- European countries tended to have more companies committed to net zero emissions goals. China had fewer than both Europe and the U.S.
- To help companies with their climate goals, computer-software-company ServiceNow announced today that its new tech platform will be a tool for companies to track and manage their overall emissions.
Why it’s news
As climate-change awareness grows, more companies are committing to greener policies, but some say that’s not enough.
“It’s encouraging there are still growing commitments from corporates, but it is still not enough … And many of those who haven’t taken action are the heavy emitters,” says Climate Impact Partners CEO Vaughan Lindsay to Fortune’s Alan Murray.
Though businesses have committed to reducing their own emissions, only around a third of Fortune Global 500 companies have set similar targets for Scope 3 emissions—emissions produced by suppliers or users of the products companies produce. These emissions make up about 80% of a company’s carbon footprint, Murray reports in his CEODaily newsletter.
ServiceNow has developed a new tool to help companies more accurately determine their environmental impact.
ServiceNow CEO Bill McDermott explains that though companies want to be accountable for their environmental impact, they often don’t have the metrics to understand where they stand. ServiceNow’s new tools will allow companies to more accurately manage their emissions.
Tools to help companies become more environmentally conscious are growing more common. Time recently announced CO2 by Time, a sustainability division of the magazine that helps companies invest in green initiatives.
A company’s location seems to have an effect on its dedication to reducing emissions.
Many European countries have government mandated net zero emissions targets resulting in 78% of European-based Fortune Global 500 companies having 2030 emissions targets.
Unlike Europe, the U.S. has no government requirements in this category yet 53% of companies have 2030 emissions goals.
China has announced a plan to reach carbon neutrality by 2060, but only 5% of China-based Fortune Global 500 companies have 2030 goals.