Moody’s ESG Solutions today announced the launch of its Temperature Alignment Data, a net zero solution which assesses how companies’ emissions targets align with global temperature benchmarks and their progress in meeting those targets.
“Rising concern about the effects of climate change has increased pressure on investors, companies, and governments to contribute to the energy transition and demonstrate measurable action toward achieving emissions targets,” said Andrew Grant, Vice President – Climate Solutions in Moody’s ESG Solutions Group, in a press release. “Moody’s ESG Solutions’ Temperature Alignment Data provides greater transparency on whether companies’ net zero commitments are in line with what’s required to keep warming below 1.5°C, highlighting that there is critical need for increased ambition.”
Moody’s ESG Solutions’ Temperature Alignment Data covers 4,400 of the largest companies globally, and will be expanded over time. Banks and asset managers can use the data to quantify and monitor corporate emissions targets and the temperature alignment of their portfolios, while companies can benchmark their emissions targets against peer targets and market expectations.
Findings from the new dataset include:
- While 42% of the 4,400 covered companies have set emissions targets, only 3% of the 4,400 have targets aligned with achieving 1.5°C by 2050.
- The average implied temperature rise among assessed companies is 2.9°C.
- Sector results vary widely, but every individual sector covered has an implied increase of above 2°C and fails to rise to the ambitions of the Paris agreement.
The Temperature Alignment data expands upon Moody’s ESG Solutions’ existing data offering for assessing transition risk, including: Carbon Footprint Data, which captures or models scope 1, 2, and 3 emissions; Brown Share/Green Share Data, which assesses corporations’ exposure to fossil fuels; and Climate Controversies Data, which captures entities’ known or reported controversies related to climate change and GHG emissions.
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