Business Wire

COP26 Warning: World’s Listed Companies to Cause a Temperature Rise Of 3°C

Share

The Paris Agreement climate targets are increasingly out of reach as the world’s publicly listed companies will cause global temperatures to rise by 3°C, according to the latest MSCI Net-Zero Tracker.

With less than 10% of public companies aligned with a 1.5°C temperature rise threshold, the global carbon budget to limit global warming to 1.5°C will be exhausted by November 2026. This timeframe has moved forward by five months in just 90 days since the launch of the Net-Zero Tracker in July.

Henry Fernandez, Chairman and Chief Executive Officer, MSCI, comments: “The findings of the MSCI Net-Zero Tracker should dramatically increase the world’s sense of urgency to reduce greenhouse gas emissions. As the extreme weather events of 2021 have reminded us, climate change is not a ‘potential’ problem 30 or 40 years down the road. It is a clear and present danger to our way of life right now. What we do over the next half-decade — and especially at COP26 in Glasgow — could make the difference between avoiding or experiencing the worst climate impacts. We urge firm action rather than words at COP26 to divert the world from an imminent crisis and chart a path toward a sustainable future.”

Emissions set to rise by 6.7% in 2021

The rapidly shrinking timeframe is being driven by the significant rise in greenhouse gas emissions from public companies as global economic activity rebounds.

The Net-Zero Tracker, a quarterly gauge of climate change progress across a global universe of 9,300 public companies based on the MSCI All Country World Investable Market Index (ACWI IMI), finds that company emissions are set to rise by 6.7% this year.

No sector or region is safe

The Net-Zero Tracker also finds that less than half of listed companies are aligned with a 2°C temperature rise. No sector or region is aligned with the 2°C target. Even low emitting industries such as health care, information technology and financial services have outliers consuming a disproportionate share of their industry’s remaining budget.

From a regional perspective, although companies in developed economies are projected to become more carbon-efficient this century, every region is still emitting in excess. The problem is most extreme in Emerging Markets (EM) EMEA, where the implied temperature rise of listed companies is 4.8°C, followed by EM Americas and EM Asia, which are set to rise by 3.8°C and 3.4°C, respectively. To address this, companies need to cut their absolute carbon emissions by 10% a year on average. However, from 2016 to 2020, less than a quarter of the world’s publicly listed companies managed this feat.

Major gaps in disclosure of emissions — the laggards revealed

As investors and policymakers seek new levels of transparency on emissions, the latest Net-Zero Tracker shows:

  • Saudi Arabian Oil Company, Gazprom PAO and Coal India Limited are the top three listed companies with the largest carbon footprint
  • Shaanxi Coal Industry Company Ltd is the largest emitter to not disclose any of its greenhouse gas emissions
  • GlaxoSmithKline plc, H&M Hennes & Mauritz and Électricité de France S.A. are listed in the top 10 companies that have published the most thorough emissions-reduction targets
  • Gazprom PAO, A.P. Møller – Mærsk A/S and Toyota Industries Corporation reported additional scopes in the previous quarter and are now reporting all company emissions across most of the relevant categories (i.e., Scope 1, 2 and 3)

Remy Briand, Global Head of ESG and Climate at MSCI, adds: “While it is encouraging that some of the world’s largest listed companies are taking important steps by broadening their emissions reporting and setting decarbonization targets, the Net-Zero Tracker shows that major gaps still remain as many are failing to disclose this crucial information. Climate disclosures are critical for investors to help them assess the carbon intensity of companies, to model climate-related financial risk and the impact on the performance of portfolios, and to allocate capital accordingly. Without accurate disclosures, the chances of companies and investors reaching net-zero is a distant reality. We call on policymakers and financial regulators at COP26 to make climate-related disclosures based on international standards mandatory.”

About MSCI Inc.

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.

Notes to Editors
*Gigaton is equal to a billion tons

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or performance and involve risks that may cause actual results or performance differ materially and you should not place undue reliance on them. Risks that could affect results or performance are in MSCI’s Annual Report on Form 10-K for the most recent fiscal year ended on December 31 that is filed with the SEC. MSCI does not undertake to update any forward-looking statements. No information herein constitutes investment advice or should be relied on as such. MSCI grants no right or license to use its products or services without an appropriate license. MSCI MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WITH RESPECT TO THE INFORMATION HEREIN AND DISCLAIMS ALL LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media Inquiries
PR@msci.com
Sam Wang +1 212 804 5244
Melanie Blanco +1 212 981 1049
Laura Hudson +44 (0) 207 336 9653

MSCI Global Client Services
EMEA Client Service + 44 20 7618.2222
Americas Client Service +1 888 588 4567 (toll free)
Asia Pacific Client Service + 852 2844 9333

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Silicon Valley Veterans Launch pulsESG™ — an Integrated SaaS Platform for Enterprise ESG Analysis with $8.5M in Seed Funding from Impact-Driven Investors20.10.2021 15:00:00 CEST | Press release

pulsESG™ today announced the launch of its enterprise environmental, social, and governance (ESG) software as a service (SaaS) platform backed by $8.5 million in seed funding from leading impact-driven investors and led by two Silicon Valley enterprise software veterans. The platform distinguishes itself in the marketplace through features such as model-driven architecture and full integration with both internal sources of data and external investor-facing systems, empowering companies to track and derive insights for ESG compliance and improvement based on stakeholder requirements. The company emerged from stealth mode today and the product is expected to be made generally available in Q1 2022. Led by tech veterans and co-founders Murat Sönmez and Inderjeet Singh, the pulsESG™ platform is designed to take a different approach to ESG analysis than what currently exists in the marketplace by providing comprehensive, auditable, and accurate deep analytics that can be integrated with both

Interaxon Inc. (Muse®) Launches the Latest in Non-Pharmaceutical Sleep Support: EEG-Powered ‘Digital Sleeping Pills’ That Provide Immediate & Intelligent Support for Falling Asleep & Nighttime Interruptions20.10.2021 15:00:00 CEST | Press release

Interaxon Inc. (Muse®), a leading consumer neurotechnology and meditation company, today announced the launch of the second generation of its popular EEG meditation & sleep headband, Muse S. This updated plush brain-sensing headband uses real-time biofeedback to help you learn the art of mediation as well as help you fall asleep, stay asleep and now go back to sleep if you awaken during the night. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211020005215/en/ Muse today announced the launch of the second generation of its popular EEG meditation & sleep headband, Muse S. This updated plush brain-sensing headband uses real-time biofeedback to help you learn the art of mediation as well as help you fall asleep, stay asleep and now go back to sleep if you awaken during the night. (Photo: Business Wire) Alongside the launch of the updated Muse S headband, Interaxon is launching an intelligent new kind of EEG-powered sleep experi

ExOne Showcases Ability to 3D Print Virtually Any Powder Material in New Corporate Video, “Let’s Make it Right”20.10.2021 14:30:00 CEST | Press release

The ExOne Company (Nasdaq: XONE), the global leader in industrial sand and metal 3D printers using binder jetting technology, today announced that it is open to developing virtually any powder material in partnership with manufacturers for their specific application. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211020005203/en/ The ExOne Company has released a new corporate video, "Let's Make it Right," showcasing the ability of its sustainable binder jetting technology to 3D print virtually any type of powder. ExOne has already qualified more than 20 metals, ceramics and composites for 3D printing, but is now developing materials such as pulverized concrete and other waste products with customers. (Photo: Business Wire) The material flexibility and sustainability of ExOne’s patented binder jet 3D printing technology is showcased in a new corporate video unveiled today, “Let’s Make it Right.” The video is a celebration of

Workiva Announces 2021 Partner of the Year Award Winners20.10.2021 14:00:00 CEST | Press release

Workiva Inc. (NYSE:WK), the company that simplifies complex work, announced the winners of the 2021 Workiva Partner of the Year Awards. The awards recognize partners that have leveraged their significant industry and solution-specific experience to help customers expand their use of the Workiva platform to drive transparency in reporting and compliance. Award recipients were recognized during the Company’s virtual Global Partner Summit, held October 18 & 19. “Our partners are instrumental in deploying the Workiva platform as a critical component in digital transformations across global enterprises,” said Corey Wells, vice president of partnerships and alliances at Workiva. “It’s an honor to recognize this year’s winners for helping drive the innovation and collaboration that has made a lasting impact on our customers' business.” 2021 Partner of the Year Award Winners Global Partner of the Year - DeloitteGlobal Technology Partner of the Year - FloQastNorth American Advisory Partner of t

BentallGreenOak Achieves New High Mark for Exceptional Performance in the 2021 Global Real Estate Sustainability Benchmark (GRESB), Marking 11 Consecutive Years of Excellence and Industry Leadership in ESG20.10.2021 14:00:00 CEST | Press release

BentallGreenOak (BGO) announced today that, in a consecutive run of industry leadership now marking 11 years, its global real estate investment platform has achieved a new high mark for exceptional performance in the annual Global Real Estate Sustainability Benchmark (GRESB). Four of BGO’s flagship investment strategies, already amongst the best performing funds in their global categories, achieved five star ratings and higher scores in 2021, reinforcing a firm-wide commitment to enhanced, year-over-year performance in ESG across its platform. For the first time in BGO’s 11 years of GRESB participation, all BGO funds participating in the Development module — which measures an entity’s efforts to address ESG issues during a building’s design, construction and renovation phases — ranked first in their peer group, achieving Sector Leader status. Highlights from BentallGreenOak’s 2021 GRESB scores: All BGO Funds scored 100% on the Management component of GRESB, demonstrating leadership in

Slate Asset Management Expands European Platform with NOK 1 Billion Essential Real Estate Portfolio Acquisition in Norway20.10.2021 13:23:00 CEST | Press release

Slate Asset Management ("Slate”), a global alternative investment platform focused on real estate, announced today the acquisition of a portfolio of 25 essential real estate assets in Norway for approximately NOK 1 billion. The acquisition – Slate’s first in the Nordics – further scales the firm’s European platform and significantly increases Slate’s exposure to high-quality essential real estate assets in broader Europe. The portfolio comprises approximately 50,000 square meters geographically dispersed across Norway, with the majority concentrated in and around Norway’s five largest cities. The entirety of the portfolio’s income is generated by essential goods and service providers, including 24 grocery stores let to class-A tenants and one government-tenanted medical facility. The portfolio’s three major operators are leading Norwegian grocery groups Coop Norge, Reitan Group and NorgesGruppen, which hold around 96% of the total grocery market share in Norway. “We are actively increa

Israeli Food Manufacturer Tnuva Selects DXC Technology to Transform Supply Chain20.10.2021 13:00:00 CEST | Press release

DXC Technology (NYSE: DXC) today announced that it has been awarded one of Israel’s largest ever commercial IT implementation contracts, worth US$40 million, by Tnuva, Israel’s leading producer of dairy and food products. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211020005292/en/ Tnuva’s dairy production line (credit: Tnuva) Under the terms of the five-year agreement, DXC will modernize Tnuva’s IT estate by implementing a new digital supply chain system, which will help the food producer to accelerate operations and provide high quality food to millions of consumers across Israel. DXC will implement a single Enterprise Resource Planning (ERP) solution, based on SAP’s innovative ERP platform SAP S4/HANA®, to consolidate and modernize approximately 240 of Tnuva’s legacy systems across business applications and dairy management. The system will enable Tnuva to shorten the time to market for new products and optimize its da

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom