Climate Leaders Coalition signatories, including many in the transport sector, have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses.
The initiative was formed in 2018 with 60 original signatories and has since grown to more than 100 with a vision to build towards a zero-carbon future.
The signatories collectively account for almost 60% of New Zealand’s gross emissions, around 38% of GDP, and employ almost 220,000 people.
The figure was revealed in the coalition’s recently released third anniversary snapshot report.
The report follows the Government’s release of the Emissions Reduction Plan discussion document last week and ahead of the United Nations Climate Change Conference (COP26) in Glasgow to accelerate action towards the goals of the Paris Agreement.
“While it is for governments to set emissions budgets, targets, and plans, it is businesses that will primarily lead the action needed to transition to a low-emissions economy, as well as providing the vast majority of the required investment,” coalition convenor and Z Energy chief executive Mike Bennetts says.
“That’s why it’s encouraging that our signatories have committed a collective $9.5 billion for investments in reducing emissions from our business operations over the next five years.”
The snapshot report also shines a light on signatories’ individual and collective progress in delivering the coalition’s commitments.
“Our signatories continue to lead on climate action and 51 signatories reduced their gross emissions over the past year. Where we have been able to compare signatories that have reported in two consecutive years, collective overall scope 1 and 2 emissions were down by 7%, with improvements in energy efficiency, EV uptake, and COVID-19 related impacts noted by signatories as key contributors to these reductions,” Bennetts says.
“This year is also the first time we have published a snapshot of each signatory’s scope 1 and 2 emissions, along with their target ambition- to increase transparency and to hold each other to account for our climate action.
“Climate action presents one of the greatest business opportunities of our time and those at the forefront of the transition will be the ones who benefit most.
“While business can do a lot on its own, neither our signatories nor the Government can meet Aotearoa New Zealand’s emissions reduction goals individually.
“Clear and enduring Government policies are vital to giving businesses the confidence and certainty we need to invest and innovate as we strive towards achieving our climate targets.
“We will continue to work alongside the Government as it develops Aotearoa New Zealand’s first Emissions Reduction Plan to advocate for policies and actions that enable us to deliver on the commitments we have announced today.
“We are also reviewing our existing level of ambition with an intention to update our statements to ensure our signatories continue to demonstrate climate leadership as science and policy evolves,” Bennetts says.
Other key facts from the snapshot report include:
- Signatories report a collective $750 million investment in developing products or services to reduce end-user emissions over the next five years
- 75% of signatories had their emissions inventory independently verified
- 28% of signatories assessed and disclosed their climate change risks and another 55% are working on it
- 80% of signatories are considering climate change in their investment decisions and planning
- 95% of signatories are reporting their scope 3 emissions (broader emissions associated with indirect business operations such as business travel, freight, emissions from suppliers and the emissions associated with the use of their products)
- All signatories are now meeting the 2017 statement to measure and publicly report on their emissions, set a public emissions reduction target consistent with keeping within 2 degrees of warming, and work with suppliers to reduce their emissions
- 31 signatories have also signed up to the Coalition’s higher ambition 2019 statement to pursue efforts in line with the Paris Agreement temperature goals, disclose and report on climate risk, have their emissions reduction targets grounded in science and independently verified, and work with their people and suppliers to reduce their emissions. This is up from 18 in the previous year
- 22 of the 26 recommendations in the Coalition’s joint submission with the Sustainable Business Council to the Climate Change Commission were included in the Commission’s final report to Government in June
