Big companies exaggerate results of environmental targets, study says

Several of the world’s largest companies are not achieving their own climate change control goals, revealed a survey that analyzed data from 25 large corporations.

They also routinely exaggerate or give misleading information about meeting targets, says the study by the New Climate Institute.

Google, Amazon, Ikea, Apple and Nestle are among the companies that are failing to make promised changes, according to the survey.

Companies are under pressure to cut their environmental impacts in a scenario where more and more consumers want “green products”.

Some of the companies named in the survey told BBC News they disagreed with some of the methods used in the study and said they were committed to taking action to curb climate change.

The companies analyzed account for 5% of the global emission of greenhouse gases, the research says – which means that, although they have a huge carbon footprint, they have great potential to lead the effort to limit climate change.

“The rapid growth of corporate climate pledges, combined with the fragmentation of measures, means that it is harder than ever to differentiate between real and unsubstantiated climate leadership,” the study says.

Research author Thomas Day told BBC News that his team’s original intention was to identify good practices in the corporate world, but they “were surprised and disappointed by the integrity of the companies’ claims”.

Amazon said in a statement: “We set these targets because we know that climate change is a serious issue and that action is needed more than ever. As part of our goal of neutralizing carbon by 2040, Amazon is on track to use 100 % of renewable energy in its operations by 2025.”

And Nestlé said: “We welcome scrutiny of our climate change actions and commitments. However, the New Climate Institute’s Corporate Climate Responsibility Monitor demonstrates a lack of knowledge about our approach and contains significant inconsistencies.”

The Corporate Climate Responsibility Monitor was developed by the non-profit organizations New Climate Institute and Carbon Market Watch. He analyzes the strategies announced by companies to achieve carbon neutrality – when emissions are reduced to the maximum and the rest are fully offset by actions to capture and remove polluting gases from the atmosphere.

Scientists say carbon neutrality must be achieved globally by 2050 to limit increases in atmospheric temperature.

Companies set their own goals. For example, Google promises to be carbon-free by 2030. Emissions are generated by everything from transporting goods to the energy used in factories and stores. There are also emissions involved in planting and cutting down trees.

Integrity Ranking

The New Climate Institute study gave each company an “integrity” rating. The researchers found that some corporations were doing relatively well at reducing emissions, but that all could improve. None received a “high integrity” rating.

The research analyzed factors such as the disclosure or not of the volume of emissions; whether companies provided details of the sources of their emissions and whether the information was passed on to the public in an intelligible manner.

The study concluded that, in general, the strategies in place – if implemented – would reduce emissions by a maximum of 40%, not the 100% implied by the terms “carbon neutrality” or “zero net carbon”.

According to the survey, only three of the 25 companies are clearly committed to removing 90% of carbon emissions from their production and supply chains: Maersk, Vodafone and Deutsche Telekom.

The way companies talk about their climate pledges is also a big issue, the study says. There’s a big gap between what companies say and reality, says Day. And consumers will likely find it difficult to determine the truth.

“Ambitious corporate headlines often lack real substance,” he explains. “Even companies that are doing relatively well overstate their actions.”

Day, whose team spent weeks reviewing documents, said the average person trying, say, to choose a piece of furniture, technology or buy food at the supermarket, would struggle to make an informed decision.

According to him, one of the most controversial areas is what is known as “downstream” or “upstream” emissions – those that are generated by activities indirectly linked to a company.

For example, the report says that 70% of Apple’s climate footprint is created by upstream emissions, including electricity consumption by consumers using Apple phones, laptops and other Apple products.

Many companies have not included these emissions in their climate plans.

Ikea told BBC News that it welcomes “dialogue and scrutiny” of its climate commitments and targets, to ensure they are “in line with the science of 1.5°C”.

“The New Climate Institute report is a constructive addition to that.”

And Unilever commented: “While we have different perspectives on some elements of this report, we welcome external review of our progress and have engaged in a productive dialogue with the New Climate Institute to see how we can significantly improve our approach.”

Google told BBC News: “We have clearly defined the scope of climate commitments and regularly report on progress towards targets in our Annual Environmental Report, where our energy and emissions data are verified by Ernst & Young.”

At the time of publishing this report, Apple had not responded to a request for comment.

The Corporate Climate Responsibility Monitor will continue to assess companies’ commitments, releasing findings annually.

The complete list of companies analyzed is: Maersk, Apple, Sony, Vodafone, Amazon, Deutsche Telekom, Enel, GlaxoSmithKline, Google, Hitachi, Ikea, Vale, Volkswagen, Walmart, Accenture, BMW Group, Carrefour, CVS Health, Deutsche Post DHL , E.On SE, JBS, Nestlé, Novartis, Saint-Gobain, Unilever.