Apparel, fossil fuels and hospitality sectors least prepared for climate transition
Published February 21, 2023
The apparel, fossil fuels and hospitality sectors may be doing the least planning of 13 major industries to meet the risk and opportunities presented by climate change, according to a CDP survey.
CDP found that the three sectors disclose the least information against 21 indicators the organisation has identified as being characteristic of a credible climate transition plan.
Furthermore, CDP’s climate questionnaire found only one organisation in each industry that was disclosing against all the 21 key indicators.
Financial planning, targets and strategy to achieve net zero were the poorest performing elements of a credible climate transition plan with only 3%, 4% and 7% of organisations meeting the disclosure criteria in these respective elements.
And more than 60% of all disclosing organizations disclosed to less than seven of the key indicators of a credible climate transition plan.
In 2022, CDP’s climate change questionnaire was filled in by more than 18,600 organisations. Of these, 4,100 said they had already developed a 1.5°C-aligned climate transition plan. However, only 81 (0.4%) reported sufficient detail to all 21 key indicators in the climate change questionnaire that align with a credible climate transition plan.
In 2021, 135 organisations met the disclosure criteria to all key indicators. The reduction was attributed to the introduction of a requirement for organisations to align their emissions reductions with a 1.5°C temperature rise.
On the positive side, power generation and infrastructure were those with the highest levels of disclosure across the 13 industries, with 2.2% and 1.7% of all organizations in each of these industries disclosing against all 21 key indicators of a credible climate transition plan.
6,520 organizations reported that they plan on developing a climate transition plan within two years.