CFOs and FDs sign net-zero emission statement
A group of CFOs and FDs from big-name companies commit to working towards net zero emissions by the middle of the century.
A group of CFOs and FDs from big-name companies commit to working towards net zero emissions by the middle of the century.
A group of 36 CFOs and Financial Directors have signed a statement, published by Accounting For Sustainability (A4S), in support of achieving net zero emissions by the middle of the century.
The list of signatories includes CFOs and FDs from Mars, Unilever, National grid and Tesco. Collectively the organisations they represent are responsible for 35.1 million tonnes of direct emissions, and have the potential to influence 261.3 million tonnes of indirect emissions through their asset base and managed assets.
The statement shows key leaders in large organisations are committed to working towards achieving these goals which experts say could avoid the worst impacts of climate change.
Describing this challenge, the statement reads: “The next decade is critical. The recent report from the Intergovernmental Panel on Climate Change (IPCC) warned of severe consequences of a failure to prevent global warming exceeding 1.5°C.
“To limit the increase in global average temperatures to 1.5°C, emissions need to halve by 2030, and drop to net zero by the middle of the century for the best chance of avoiding the worst impacts of climate change.”
By signing the statement, the signatories have said they will contribute by achieving one or more of the following commitments:
The CFOs acknowledge their position in large businesses means that they “have an important role to play” in efforts to reduce carbon emissions. CFOs in particular are in role that means they can account for environmental factors when making financial decisions and developing strategies.
In the statement, the signatories say that their responsibilities include: “Raising and allocating the funds our organizations need for transition and adaptation, embedding greenhouse gas (GHG) reductions within our organization’s decision-making processes, and accurately tracking and reporting our performance against our reduction targets over time.”
The reductions that the signatories have committed to are in-line with the Science Based Target initiative, and the commitments aim to build on these targets.
The CFOs and FDs who signed the statement also aim to provide leadership to other organisations, setting a good example. “Through our individual and collective actions, we aim to provide useful examples to other companies grappling with similar issues,” the statement says.
“While we see our role in addressing climate change within our companies as critical, we also wish to ensure other companies benefit from our experience. To this end, we hope our actions, strategies and progress can help other businesses as the world moves to a net zero emissions economy.”
A4S, the organisation that released the statement, says that it aims to inspire action by finance leaders to drive a “fundamental shift” towards sustainable business models and as established in 2004 by Prince Charles.
Speaking in May 2019 at the ACC Global General Counsel Summit in London on behalf of the A4S, he said: “It is absolutely crucial that we all do what we can to address these challenges.
“As a growing number of investors, regulators, academics, and others have highlighted, it does not need to be a choice between being profitable on the one hand and doing the right thing on the other.
“Both are achievable. Indeed, climate change is increasingly seen as a potentially material, financial risk, and one that must be treated accordingly,” he added.
Full list of signatories: