Our key takeaway: Now is the time for climate leadership by companies. The path ahead in decarbonising the business sector can feel overwhelming and daunting – but there is a pathway, and there are examples of good company practice. WWF provides seven concrete actions for companies that, together, combine to support companies in adopting a holistic strategy which addresses sustainability and social impacts in connection to the overall business strategy. The path starts with commitment and leadership, and includes clear and meaningful tracking, engagement with others and transparency.
World Wide Fund for Nature (WWF) published ‘Beyond Net-Zero: A Business Pathway to Spure Urgent Climate Action Towards 2030’ (April 2030) to “support companies in implementing ambitious climate strategies to limit average global temperature increase to 1.5°C.” The actions presented in the report are in line with the criteria of the Science Based Targets initiative for near-term and net-zero targets, and builds on existing collaborative initiatives (e.g. the Exponential Roadmap initiative, UN Race to Zero, SME Climate Hub, InfluenceMap, the AAA Framework and the We Mean Business Coalition)
- Climate Leadership Vision in time of need: WWF sets out the following climate leadership vision: “A corporate climate leader should strive to maximise its contribution to limiting global temperature increase to 1.5°C. This includes halving emissions by 2030 and achieving net-zero by 2050 at the latest, as well as financing and supporting additional climate and nature solutions, engaging responsibly and actively in climate policy, collaborating with other companies and stakeholders, and enabling and inspiring customers.” WWF highlights the need for “radical change” because we “are at a defining moment when it comes to addressing climate change. The risks of climate change and nature loss are quickly becoming overwhelming as our planet faces multiple crises.” Further, “[t]here is a huge ambition gap that needs to be overcome or we risk crossing irreversible tipping points.”
- Seven leadership actions: WWF highlights that the work to address climate change “should be part of a holistic strategy addressing sustainability and social impacts in connection to the overall business strategy.” There are seven leadership actions that form part of being a corporate climate leader. First, “[a]ccount & disclose consistently and transparently according to best available practices and against all commitments.” Second, “[s]et climate targets in line with 1.5°C according to the Science Based Targets initiative near-term and net-zero criteria.” Third, “[r]educe value chain emissions (scope 1-3) in line with the 1.5°C trajectory by halving emissions by 2030 and reaching net-zero by 2050 at the latest.” Fourth, “[f]inance and support climate and nature solutions across and beyond the value chain.” Fifth, “[e]ngage responsibly and actively in climate policy in line with 1.5°C and ensure internal and external corporate policy alignment.” Sixth, “[c]ollaborate with value chain partners, peers, employees and other key stakeholders to overcome critical barriers to scaling climate action.” Seventh, “[e]nable and inspire customers through sustainable products and services, education and campaigns, and transparent and accessible information.”
- Making progress: For each of these seven leadership actions, the report provides the specific action that is expected of companies, best practices in this area, as well as suggested metrics for tracking progress and impact. WWF recognises “the difficulties inherent in decarbonising the business sector” and invites companies to collaborate with WWF to further flesh out case studies and good practices, including potential new business models that companies can adopt.
