FIGURE 1: COMPANIES DISCLOSING CLIMATE- RELATED CAPITAL EXPENDITURE AMONG CA 100+
ments in carbon-intensive (brown) assets. Although the number of compa- nies reporting investments in climate solutions increases by 16 when con- sidering current capital expenditure, and rises even further for future green expenditure, these figures represent only disclosure. The data reveals a gen- eral lack of transparency on sustainable capital allocation and highlights the need for more comprehensive and con- sistent reporting across the companies evaluated. When examining the percentage of total capital expenditure allocated to green or climate-related investments, as illustrated in Figure 2, we observe that some companies are significantly ahead of others in their 2023 spending. Some of the key factors contributing to these differences are the sectors in which these companies operate, their geographical location and the regula- tory requirements they face. Companies based in Europe tend to disclose more readily, partly due to regulations such as the Corporate Sustainability Reporting Directive, which requires companies to report how their activities align with the EU Taxonomy. Importantly, this analysis only considers current capital allocations and the companies’ exist- ing assets, without delving into future investments or broader sustainability corporate strategies. By considering only current expenditures, companies may appear to be doing less than they plan for in terms of their transition to sustainability. However, the success of reaching net zero emissions hinges not only on present actions but on sus- tained and planned future investments in clean energy, climate solutions and decarbonisation technologies. Data shows that while some com- panies have made progress in green
investments, the overall level of trans- parency and action remains insufficient to meet global climate targets. Differ- ences in capital expenditure reporting across sectors and regions highlight the need for consistent, long-term com- mitments. Achieving net zero by 2050 will require not only increased cur- rent investments but also clearer future strategies. By ensuring that transpar- ent, future-oriented capital allocations support climate goals, firms can con- tribute significantly to the transition towards a low-carbon economy.
Yes
No
160
120
122
104
101
80
40
48
44
28
0
Brown
Green
Future
Source: Data from Climate Action 100+.
FIGURE 2: TOTAL CAPITAL EXPENDITURES REPORTED FOR GREEN OR CLIMATE-RELATED EXPENDITURE
100%
E.ON SE Iberdrola SA RWE AG National Grid PLC
80%
Europe North America South America Australasia Asia
60%
Fortum Oyj
SSE PLC
40%
CEZ AS Vistra Corp.
BP plc
Mercedes-Benz Group AG
20%
SSAB AB
TotalEnergies SE Equinor ASA
Holcim Ltd. Heidelberg Cement AG
Électricité de France S.A. Dulce Energy Corp.
Renault S.A.
Woodside Energy
0%
Autos
Cement
Electricity Utilities
Oil & gas
Steel
Data from the TPI Centre.
Æ SHAFAQ ASHRAF S ÝÖÛÖæ¼èÝçÖÛÞèÖåäáÞØîÛÚááäìÖééÝÚÏçÖãèÞéÞäãËÖéÝìÖîÄãÞéÞÖéÞëÚ¾ÚãéçÚ×ÖèÚÙÖééÝÚÂçÖãéÝÖâÍÚèÚÖçØÝÄãèéÞéêéÚäã¾áÞâÖéÚ¾ÝÖãÜÚÖãÙéÝÚ ÀãëÞçäãâÚãéÖééÝÚÇäãÙäãÎØÝääáäÛÀØäãäâÞØèÖãÙËäáÞéÞØÖáÎØÞÚãØÚìÝÚçÚèÝÚáÚÖÙèéÝÚ¾áÞâÖéÚ¼ØéÞäã wåçäßÚØéÎÝÚÝÖèìäçàÚÙäãëÖç - ÞäêèåçäßÚØéèìÞéÝéÝÚ¼èÞÖã¿ÚëÚáäåâÚãé½ÖãàÖãÙÊíÛÖâ½ÛäØêèÚÙäãÚãëÞçäãâÚãéÖáèêèéÖÞãÖ×ÞáÞéîÞãêç×ÖãçêçÖáÖãÙÖÜçÞØêáéêçÖáØäãéÚíéè Æ SANGEETH SELVARAJU ÎÖãÜÚÚéÝÎÚáëÖçÖßêÞèÖåäáÞØîÖãÖáîèéÞãèêèéÖÞãÖ×áÚěãÖãØÚìÞéÝéÝÚÂçÖãéÝÖâÍÚèÚÖçØÝÄãèéÞéêéÚäã¾áÞâÖéÚ¾ÝÖãÜÚÖãÙéÝÚÀãëÞçäãâÚãéÖééÝÚ ÇäãÙäãÎØÝääáäÛÀØäãäâÞØèÖãÙËäáÞéÞØÖáÎØÞÚãØÚìäçàÞãÜäãÞãÙêèéçÞÖáÙÚØÖç×äãÞèÖéÞäãÞãÄãÙÞÖąèèéÚÚáÞãÙêèéçîÃÚìÖèåçÚëÞäêèáîÖçÚèÚÖçØÝ ÖèèäØÞÖéÚÞãéÝÚØáÞâÖéÚåäáÞØîÙÚåÖçéâÚãéÖééÝÚÂÚçâÖãÄãèéÞéêéÚÛäçÀØäãäâÞØÍÚèÚÖçØÝìäçàÞãÜäãÞãÙêèéçÞÖáÙÚØÖç×äãÞèÖéÞäãÖãÙØáÞâÖéÚ ěãÖãØÚÃÚÝÖèÖáèäÝÚáÙçäáÚèÖééÝÚÈÚçØÖéäçÍÚèÚÖçØÝÄãèéÞéêéÚäãÂáä×Öá¾äââäãèÖãÙ¾áÞâÖéÚ¾ÝÖãÜÚéÝÚ¼åçÞØêâ¾áÚÖãéÚØݼÙëÞèäçîÞã ½ÚçáÞãÖãÙéÝÚ¾äêãØÞáäãÀãÚçÜîÀãëÞçäãâÚãéÖãÙÒÖéÚçÞãÉÚì¿ÚáÝÞ
65
Made with FlippingBook - Online magazine maker