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Nearly half of FTSE 100 companies have no net-zero target, Arabesque says

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By Reuters
Nearly half of FTSE 100 companies have no net-zero target, Arabesque says
Nearly half of FTSE 100 companies have no net-zero target, Arabesque says   -   Copyright  Thomson Reuters 2021   -  

<div> <p><span class="caps">LONDON</span> – Nearly half of the 100 biggest companies listed on Britain’s <span class="caps">FTSE</span> Index have no net-zero target at all and just 23 have a scientifically approved plan, according to <span class="caps">ESG</span> investment research and asset manager Arabesque.</p> <p>Britain wants to reduce greenhouse gas emissions from the economy to net-zero by 2050 while Prime Minister Boris Johnson has expressed enthusiasm for leading a green revolution to force Western economies to kick their addiction to fossil fuels.</p> <p>Arabesque research found that 45 companies on the <span class="caps">FTSE</span>-100 index had no net zero target. Just 23 companies had set net zero targets meeting the standards of the Science Based Targets Initiative (<span class="caps">SBT</span>i), which defines best practice in such targets.</p> <p>The research found that 28 <span class="caps">FTSE</span> companies are on course to contribute to a global temperature rise of 2.7 degrees Celsius or above by 2050. Scientists believe such a rise would lead to a worst-case climate scenario.</p> <p>The results of the research are a potential embarrassment for the British government just days before it hosts a major climate summit, known as COP26, in Glasgow, Scotland. </p> <p>“These findings show a wide gulf between where the <span class="caps">FTSE</span> 100 stands today, and where it needs to be to deliver on the UK’s net zero target,” Daniel Klier, president of Arabesque, said.</p> <p>“Most of the UK’s biggest firms are not on a path to reach net zero by 2050 and we will need to see a significant change in business models and capital allocation.”</p> <p>Among the best performing 20 British <span class="caps">FTSE</span>-100 companies on climate were AstraZeneca, British American Tobacco, Burberry, Rolls-Royce and Unilever, Arabesque said. The worst performing companies, according to Arabesque, were miners and energy companies. </p> <p>Klier said Britain’s top firms were performing worse on climate than comparitive companies in the United States, Japan, Germany and France. </p> <p/> </div>