FTSE 100 Companies Lag Behind in Tackling Climate Change, According to EY Study

Climate change is one of the most pressing issues of our time, and it’s no secret that businesses play a crucial role in combatting its devastating effects. However, a recent study by EY has revealed that FTSE 100 companies are lagging behind in their efforts to address this global crisis. With only 24% of these major firms setting science-based targets for reducing emissions or disclosing plans to transition to renewable energy sources, there’s much room for improvement. In this blog post, we’ll dive into the details of EY’s findings and explore what steps need to be taken by these companies to catch up with the rest of the world in tackling climate change.

What is the FTSE 100?

The FTSE 100 is a stock market index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. The index is maintained by the FTSE Group, a subsidiary of the London Stock Exchange Group.

The FTSE 100 is widely considered to be a barometer for the UK economy, as it includes many of the country’s largest and most influential companies. The index is also followed closely by investors around the world, as it provides insight into the health of the UK economy and its companies.

However, according to a new study from EY, FTSE 100 companies are lagging behind their counterparts in other countries when it comes to tackling climate change. The study found that while FTSE 100 companies have made some progress on reducing emissions and increasing renewable energy use, they are not doing enough to meet their own targets or those set by the Paris Agreement.

EY’s report recommends that FTSE 100 companies increase their ambition on climate action in order to meet their own targets and contribute to meeting the goals of the Paris Agreement. The report also urges investors to pressure companies to take action on climate change, saying that it is “essential” for long-term value creation.

EY Study Findings

A new study from EY has found that FTSE 100 companies are lagging behind in their efforts to tackle climate change. The report, which was based on an analysis of the climate-related disclosure of the UK’s largest listed companies, found that only 7% are aligned with the goals of the Paris Agreement.

EY’s study comes as pressure mounts on businesses to do more to address the global climate crisis. In recent months, there have been a number of high-profile initiatives launched by investors and environmentalists to encourage companies to take action on climate change.

The findings of EY’s study will add to this pressure, as they highlight the significant gap between what FTSE 100 companies are doing to combat climate change and what needs to be done in order to meet the goals of the Paris Agreement.

The study found that only 19% of FTSE 100 companies have set targets that are aligned with the goals of the Paris Agreement, and just 7% have disclosed plans that would enable them to achieve these targets. This means that there is a significant disconnect between what these companies say they are doing to tackle climate change and their actual actions.

EY’s report provides a clear call to action for FTSE 100 companies: they need to step up their efforts to combat climate change and align their business strategies with the goals of the Paris Agreement.

Reaction from the Business Community

UK businesses are failing to address the threat of climate change, according to a new study. The research, by professional services firm EY, found that just one in seven (14%) FTSE 350 companies have disclosures consistent with the goals of the Paris Agreement on climate change.

This lack of action is concerning given the urgent need to cut emissions and avoid the worst effects of climate change. It also puts UK businesses at a competitive disadvantage as other countries move ahead with their own climate mitigation plans.

The study found that UK companies are particularly lagging behind when it comes to setting targets for reducing emissions. Just over one-third (35%) of FTSE 350 firms have set targets consistent with the Paris Agreement, compared to half (50%) of companies in the EU and two-thirds (66%) in the US.

There is some good news, however. The number of UK companies disclosing carbon emissions has increased from less than half (45%) in 2015 to two-thirds (67%) in 2018. And more companies are starting to link executive pay to environmental targets, with nearly one-quarter (23%) doing so in 2018, up from just 5% three years ago.

But there is still a long way to go before UK businesses are doing enough to tackle climate change. EY’s report makes a number of recommendations, including that businesses should set science-based emissions reduction targets and ensure that these are reflected in strategy and operations.

What Can Be Done to Address Climate Change?

Climate change is one of the most pressing issues of our time, and companies must do their part to address it. However, according to a new study from EY, many FTSE 100 companies are lagging behind in this area.

The study found that only 14% of FTSE 100 companies have set targets for reducing their greenhouse gas emissions, and just 6% have disclosed any kind of climate-related risk in their annual reports. This is despite the fact that investors are increasingly interested in how companies are preparing for a low-carbon future.

There are a number of things that can be done to address this issue. First, investors need to put pressure on companies to disclose more information about their climate-related risks and opportunities. Second, government policy needs to incentivize businesses to take action on climate change. And finally, we all need to work together to raise awareness about the importance of taking action on climate change.

Only by taking action on all fronts will we be able to adequately address this issue and create a sustainable future for all.

Conclusion

The EY study has shown that FTSE 100 companies are lagging behind in taking action on climate change. This is concerning, as it’s clear we need to be doing more to protect our planet from the dangers of climate change. Companies must step up and take responsibility for their part in tackling the global crisis; only then can we make progress towards a brighter future. Implementing initiatives such as setting carbon reduction targets and investing in renewables will help us make significant strides towards achieving this goal, but ultimately it is down to each company to do its part.