Storebrand Asset Management backs CDP campaign asking big emitters to meet 1.5°C goal

Storebrand Asset Management is proud to join a group of 318 financial institutions and multinational firms with $37 trillion in assets and spending power in calling on over 1,000 of the world’s highest impact businesses to set emissions goals in line with the Paris agreement’s 1.5°C goal.

The 2022 CDP Science-Based Targets campaign is coordinated by the global non-profit CDP, which runs the world’s environmental disclosure system.

Storebrand Asset Management is pressing the targeted companies to set an emissions reduction target approved through the Science Based Targets initiative, the industry standard for credible climate targets that cover all of a company’s value chain emissions.

Isciel, Emine, Head of Climate and Environment, Storebrand Asset Management, said:
"Science-based targets are proven to cut corporate emissions at the pace and scale required - they are a vital part of the puzzle for governments ahead of COP27. Too few companies have unfortunately set targets and even fewer have started to deliver substantial emission reductions. As long-term investors seeking to allocate capital responsibly, we expect our portfolio companies to develop, commit to and execute on science-based emissions reduction plans aligned with the Paris Agreement"

CDP sent letters on behalf of Storebrand Asset Management and the other participating organizations to over 1,000 companies worldwide, including China’s largest retailer JD.com, Australian flag carrier Qantas, the world’s biggest chemicals firm BASF, as well as Caterpillar, FedEx, General Electric, Wal Mart de Mexico and Wilmar International.

The CDP campaign grew by over 30%since last year, both in terms of the number of supporting organizations and their collective assets and purchasing power.

The 1,000 companies targeted are critical for global efforts to limit global warming to 1.5°C. They are the source of 7 gigatons of Scope 1 and 2 emissions and have a combined market value of over US$25 trillion (44%of the entire MSCI All Country World index).

Laurent Babikian, Joint Global Director Capital Markets at CDP, said:
“The past few months of extreme weather have again shown us what a warming world does at 1.2 degrees. Companies must urgently set targets through the SBTi if we are to reduce emissions at the pace and scale required to avoid the most serious impacts of climate change. We are encouraged by the continued growth and success of this campaign, demonstrating that financial institutions see science-based targets as essential for all companies, and necessary for them to meet their own net-zero ambitions.”

Globally, over 3,500 companies representing over a third of global market capitalization are already part of the SBTi. Among these, over 1,200 have approved 1.5°C targets. SBTi data shows the typical company with a target cuts emissions by 8.8% per year – above the 4.2% required to align with a 1.5°C path.