Business in the Community Ireland: New Low Carbon Pledge report charts the decarbonisation journey of over 60 companies

Ireland largest businesses have shown real ambition and progress towards science-based targets as they chart their decarbonisation journey, says major new report by PwC on the BITCI Low Carbon Pledge.

Over two-thirds of Ireland’s largest businesses are well progressed to setting science-based targets by 2024 to tackle climate change
Very significantly, 42% of the BITCI Low Carbon Pledge companies have set a net-zero ambition – before 2030
90% of signatories consider climate and ESG in their strategic and operational decision-making process
Business model resilience (40%) was the main driver for signing this more ambitious Pledge
Key challenges to setting science-based targets are data accessibility and complexity of the assessment

2021 sees a new more progressive ambition for Business in the Community Ireland’s (BITCI) Low Carbon Pledge. Established in 2018, signatories must now align their climate action with what science says is necessary to limit global warming to 1.5°C – aligned to the Paris Agreement. This new more ambitious Pledge calls on businesses to work towards setting science-based emission reduction targets (i.e. what science says is necessary to limit global warming to 1.5°C) by 2024 at the latest.

64 companies have signed this year’s more ambitious Pledge, up from 58 signatories last year. The signatories span 11 sectors, with professional services firms, agribusiness/food & drink, and financial services being the top three largest sectors represented. With this new commitment, businesses take a significant step forward.

For the third year running, BITCI partnered with PwC to produce the Low Carbon Pledge report, Business Working Together for a Low Carbon Future, published today and reveals progress of The Pledge signatories towards decarbonisation.

The PwC report reveals that The Pledge companies have shown real ambition with significant progress made towards tackling climate change. 68% of the Pledge signatories are well progressed to setting science-based targets (SBTs) by 2024, 30% of which have successfully set SBTs and had them approved by the Science Based Targets initiative (SBTi) and 38% of which have formally committed to setting SBTs. Signatories within the technology, retail, and agribusiness/food & drink sectors are the most advanced on the journey to science-based targets.

Other key findings from the 2021 Low Carbon Pledge report include:

Business model resilience (40%) was the main driver for signing this more ambitious Pledge.
For companies that have set SBTs, 100% cover scope 1 and 2 emission reduction targets, with 82% also setting the more difficult scope 3 emission targets. Around three-quarters are set to achieve their SBTs by 2030 or earlier.
Very significantly, 42% of the Pledge signatories have set a net-zero ambition. For example, 56% have set their scope 1 and 2 ambitions net-zero targets to be met by 2030 or earlier. Positively, 41% of respondents have set scope 3 net-zero targets for 2030 or earlier, which is significantly more ambitious than the national trajectory of net-zero by 2050.
Notably, 90% of Pledge signatories consider climate and ESG in their strategic and operational decision-making process. 93% have a dedicated sustainability lead within the firm, of which 66% are at the executive level. Support from the top is critical for any change programme and these findings illustrate how seriously this group is taking sustainability.
One-third of signatories did not yet know what percentage of their entire carbon footprint was made up of scope 3 emissions. One-quarter of signatories stated that scope 3 emissions make up over 80% of their carbon footprint. This highlights the importance of focusing on reducing scope 3 emissions which clearly requires that companies are first in a position to accurately measure all material emission sources.
The top challenges facing the Pledge signatories when it comes to measuring/reporting scope 3 emissions and setting science-based targets are (1) data accessibility and (2) complexity of the assessment. The report reveals that signatories within the agribusiness/food & drink sector have shown that it is possible to move ahead even if formal SBTi sectoral guidance is not yet available.
Post-pandemic, most signatories expect to see a long-term reduction in business travel and continued use of digital platforms for hybrid working. The report reveals that many signatories are creating sustainable travel policies, which call out a more limited requirement for essential travel.
65% of this year’s signatories receive external verification of their emissions data, up from 53% in last year’s report. With increased reporting, ensuring that the verification of emissions data is robust and accurate is critical to mitigate against the risks associated with inaccurate and incomplete reporting.

Tomás Sercovich, CEO, Business in the Community Ireland (BITCI), commented: “The Low Carbon Pledge demonstrates a meaningful business commitment to reducing carbon emissions. The past 12 months have seen the Pledge evolve to a commitment focusing on tackling carbon impacts across value chains. This is significant, as most emissions lie within the supply chain, in most sectors of economic activity. The report highlights that many of Ireland’s largest businesses are on track towards setting science-based emission reduction targets by 2024 and a net-zero ambition is not optional anymore.”

“Businesses are experiencing the need to evolve and transform their operations to deliver a green and socially inclusive future. This transformation will be complex and challenging beyond what we have experienced. It will be costly and take time to research and innovate, creating partnerships and ways of working. However, with all these challenges comes endless opportunities to build the products and services of tomorrow, supporting a just and responsible transition.”

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