South Pole's 2021 report on Net Zero
In the 2021 South Pole net zero report – based on a survey of over 200 sustainability leaders representing 15 sectors across five continents – it has become abundantly clear that competition and brand position is driving net zero ambition, not government pressure. At least not yet.
Last year, South Pole's 2020 report on net zero found that COVID-19 had propelled climate ambition to the top of the corporate agenda – and surprisingly, companies had set net zero targets during a year plagued by a pandemic. But few organisations had set concrete milestones on how to get there, prompting the question: Are they serious about their climate goals?
This year we were eager to see what, if anything, had changed.
In the 2021 South Pole net zero report – based on a survey of over 200 sustainability leaders representing 15 sectors across five continents – it has become abundantly clear that competition and brand position is driving net zero ambition, not government pressure. At least not yet.
Last year, South Pole's 2020 report on net zero found that COVID-19 had propelled climate ambition to the top of the corporate agenda – and surprisingly, companies had set net zero targets during a year plagued by a pandemic. But few organisations had set concrete milestones on how to get there, prompting the question: Are they serious about their climate goals?
This year we were eager to see what, if anything, had changed.
More companies with net zero targets have now added science-based targets as milestones. But the urgency to act now is lacking.
Government action and regulation is not driving climate commitments. Regulation was trailing surprisingly far behind in the list of forces shaping the net zero landscape, indicating that the pressure to reduce emissions by governments remains low. So what are the drivers pushing companies to achieve net zero emissions?
The responsibility for net zero emissions in companies has yet to permeate teams beyond the C-suite and sustainability departments. While high level of trust in the C-suite to achieve net zero emissions is cause for optimism, it is clear that the responsibility for climate action is concentrated at the top and not yet a task where ownership is shared among all levels of a company.
Beyond the C-suite, most corporate functions do not feel ownership of net zero
"The top reason for moving ahead on climate action is not government regulation, but pressure from consumers. Government policies only come in fifth place! COVID-19 has shown us that complete societal transformations are possible when the political will is there. Right now, there is little government pressure to act, at a moment when we have precious little time left."
Renat Heuberger, CEO, South Pole, South Pole
Read the press release on the key findings of The Push and Pull of Net Zero: Drivers of Climate Action – South Pole's 2021 net zero report.
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