How well are NZ companies reporting their climate impacts?
(Left)Sarah Walton, Professor of Sustainable Business, University of Otago (Right)Andrea Foley, Assistant research fellow, University of Otago Interpreting corporate reports on carbon emissions can be challenging. The current, adhoc approach to how businesses share this information makes it difficult to see whether they have set the right targets, have realistic plans to meet them or are being transparent about their progress. While there are frameworks for reporting climate and sustainability data, there are still big differences in the way the data is being disclosed. We developed the Climate Action Tracker Aotearoa (CATA) to address these issues. Based on the global Net Zero Tracker, CATA evaluates company reports and climate plans to share and explain their climate action. Using the tracker, we analysed 21 companies in Aotearoa New Zealand, focusing on the top emitters and companies in the energy, retail, agriculture and transport sectors, as well as the banking sector. We evaluated three aspects – targets, plans and reporting – by reading through publicly available information provided by the company. These three aspects help make sense of what a company is doing and going to do to mitigate climate change. Here is what we found. Setting targets While the majority of companies have 2030 targets (86%) and absolute targets (81%), only five companies of the 21 (25%) have targets that have been verified by the Science-based Targets Initiative. All but two companies include scope one (emissions the company creates directly) and scope two (emissions created indirectly from, for example electricity or energy it buys for heating and cooling buildings) – the areas companies have the most control and ownership over. But when it comes to scope three emissions, which come from company travel in planes, trains and taxis, and the supply chain, far fewer companies have set such targets. Scope three targets are […]