GHG targets falling short, says CDP

Greenhouse gas (GHG) targets set by many of Britain's largest companies are too weak to meet UK commitments on climate change, according to a new report from the Carbon Disclosure Project (CDP). It says a lack of ambition from companies in the energy, materials and utilities sector threatens government plans to cut emissions by 2020. The CDP report found that 77% of FTSE 100 companies said they have a target to reduce emissions, with an average annual reduction rate of 2.5%. However, the average annual emissions reductions planned by the firms in the energy, utilities and materials sectors total 1.2%. There are only 24 of these companies in the FTSE 100, but they account for 87% of all FTSE 100 reported emissions. Joanna Lee, CDP's director of communications and corporate partnerships, said: "Across the board, companies are doing pretty well. But what's most striking is that if you look at the three most heavily polluting sectors, they are lagging significantly behind. If we are going to deliver on climate change targets these companies need to take more aggressive action." The report says there is a "carbon chasm" between what is planned by the firms and what is required. It says: "The targets set by the most carbon intensive sectors, responsible for the majority of FTSE 100 emissions, are not sufficiently ambitious and will not deliver reductions required by the UK climate change act." It adds: "Clearly, UK regulation is sending strong signals to companies of the necessity to manage carbon, but as many of these companies operate globally, we also need a strong global framework to create the right incentives to set sufficiently strong targets."