At least $1.3 trillion for the green energy transition could be unlocked by the world’s 2,000 most influential companies, without the need for new solutions, new analysis by the World Benchmarking Alliance (WBA) has suggested.
According to the WBA, this would represent around 30% of the annual clean-energy investment required towards the net-zero pathway, and could be achieved using investment approaches that are already in place.
As it noted, while high levels of spending on low-carbon technologies are rare, a quarter (25%) of firms across multiple industries are reporting low-carbon investments, with many allocating ‘well above’ the 7% median share of total capital expenditure.
This includes investment in electrified transport, green ammonia and fertilisers, battery production, regenerative agriculture, renewable energy, and low-carbon construction materials, among other areas.
The WBA also noted that some companies are allocating as much as 30% to climate solutions, shifting spending away from high-emission activities.
‘This demonstrates that meaningful progress is achievable using investment approaches that already exist and can be adopted across regions and markets,’ it said, adding that if other companies were to replicate this shift away from carbon-intensive technologies, as much as $1.3 trillion worth of investment could be generated for the transition to clean energy.
‘Diversity in performance’
“Our research shows a striking diversity in performance: while some companies are making impressive progress, too many continue to fall behind,” commented Gerbrand Haverkamp, executive director, World Benchmarking Alliance.
“In the midst of rising climate impacts, geopolitical tensions and economic uncertainty, companies still have a choice in how they respond. Our data makes it clear that progress is possible, and a growing group of companies are proving that meaningful action can be taken today. But we also see signs of hesitation, with some companies backsliding or stagnating. That is why it is essential to look beyond corporate commitments and focus on actual emissions and investments.”
The world’s most influential companies
The companies assessed by WBA as part of its research represent a combined $48 trillion in revenue, and employ 107 million people directly and a further 550 million along their value and supply chains. They also account for more than half (54%) of global emissions.
As WBA noted, less than a fifth of these firms (18%) are reducing their operational emissions at the pace necessary to align with their 1.5°C sectoral pathways.
‘This shortfall represents a critical missed opportunity: delaying action now means exponentially steeper and costlier reductions will be needed later due to the cumulative nature of emissions,’ it said. Read more here.
