aClimate protection cannot be rated as exemplary in 30 of the DAX companies, but the leading German stock index has fared better than its peers in the rest of the G7 countries. This is the result of a study conducted by FAZ by the Science Objectives Initiative (SBTi), a joint initiative of the United Nations Global Compact, the Carbon Disclosure Project (CDP), WWF (WWF) and others.
This initiative aims to support companies with scientifically sound climate goals on their path to a CO2-free economy. The most important guiding principles are the Paris climate agreement, according to which global warming compared to the pre-industrial era should be limited to less than 2 degrees Celsius, at best to 1.5 degrees. In order to achieve this goal, the so-called “greenhouse gas neutrality” must be achieved in the second half of this century. The gases harmful to the climate may then not be emitted, i.e. withdrawn by nature, eg forests.
Demands on the G7 countries
In the SBT study, DAX companies achieved a global warming of 2.2 degrees, which is not in line with the Paris climate target, but better than the G-7 average of 2.8 degrees. The latest study shows that the leading industrialized nations have some catching up to do: none of the leading indicators out there are on track to meet the Paris climate goals. With a view to the G-7 meeting this weekend, Leyla Karbassi, Board Member a The Global Compact, calls on governments to create more incentives for science-based goals. Ignoring scientific knowledge about climate change Alberto Carrillo Pineda, director of the Carbon Disclosure Project, compares a smoker’s decision to continue smoking despite knowing the risks and harms.
The British benchmark FTSE 100 and its Canadian counterpart SPTSX 60 were worse with 3.1 degrees Celsius each. To evaluate the indicators, it is critical that the emissions of the index companies are covered with scientifically justified targets. The higher the ratio, the lower the initiative temperature rating. BMW Motors has joined the SBT initiative to make itself measurable. Deutsche Post and technology group Bosch also introduced the review process in order to provide more transparency to the public and investors regarding sustainability. In the Dax The highest share was 60 percent, followed by the CAC40 index of the Paris Stock Exchange with 35 percent and then the FTSE MIB index of the Milan Stock Exchange with 29 percent. It achieves the best French and Italian standards with a temperature rating of 2.7 degrees after Dax.
According to the SBTi study, fossil fuels are the largest contributor to emissions. It makes up 70 percent in the temperature rating of the leading Canadian index and 50 percent in the Italian FTSE MIB. The proportion of science-based climate targets is the lowest on the SPTSX60 of the Toronto Stock Exchange at less than one percent. London’s leading index comes in at 6 percent, the US S&P500 stock index at 15 percent and Japan’s Nikkei 225 index at 11 percent. The S&P500 and Nikkei 225 reach global warming of 3.0 degrees each.