Today’s ESG Updates
- Accenture Report Highlights Net Zero: While 89% of the world’s largest companies link decarbonization to business value, only 16% are on track to meet 2050 net zero targets.
- Ørsted Achieves Green Transformation: Danish energy leader Ørsted becomes the first global company to achieve its 2025 decarbonization goal, with a 98% reduction in emissions.
- EU and UK to Open Carbon Market Link Negotiations: European countries have agreed to begin negotiations for a carbon market link with the UK to avoid impending carbon border tariffs.
- China Expands Renewable Strategy Beyond Power: China’s new five-year plan targets production of green hydrogen, sustainable aviation fuel, and other renewables to reduce curtailment and industrial emissions.
Accenture report finds increased net zero targets, yet only 16% of firms are on track
In a report released Tuesday, global consulting firm Accenture highlighted key findings on the net zero transition. It found that, of the world’s largest companies (G4000), 89% are “connecting decarbonization efforts to business value.” Of these companies, one-third have set net zero targets across Scopes 1, 2, and 3. However, only 16% are on track to meet these targets, representing a minor 4% of G4000’s global emissions. The largest 2,000 companies (G2000) have increased net zero target setting from 27% to 41%. Accenture emphasizes decarbonization as a key differentiator in the global race for competitiveness. The report reads: “Even as the global consensus on net zero becomes more fragmented, decarbonization has moved firmly into the realm of business strategy.” Companies committed to decarbonization and meeting net zero targets should look to ESG solutions for guidance.
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Further reading: Destination net zero 2025
Ørsted to become first energy company to reach decarbonization targets
Ørsted has officially reduced its carbon emissions by 98%, making it the first company in the world to reach its 2025 decarbonization target. Additionally, 99% of the energy company’s energy production comes from renewable sources. The company reduced its reliance on fossil fuels by closing coal-fired plants, electrifying its transportation fleet, divesting from oil and gas activities, and investing heavily in offshore wind and other renewables. Ingrid Reumert, Ørsted’s Senior Vice President for Global Stakeholder Relations, said, “Decarbonisation is at the heart of Ørsted. We were founded on a promise to deliver green, affordable, and secure energy to governments around the world, and over the past years, we’ve built 18,5 GW of renewable energy. In parallel, we’ve delivered on our own green transformation.” Companies that wish to follow Ørsted’s path should consider ESG tools to stay on track.
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Further reading: Ørsted will be the first energy company in the world to complete a green transformation with a 98 % reduction in carbon emissions
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EU and UK to begin carbon market link negotiations
A spokesperson for Denmark stated on Wednesday that EU countries have agreed to begin negotiations with the United Kingdom to link their carbon markets. Beginning January 1, the European Union will impose a carbon border fee on cement, steel, and other imports. The UK government has claimed that the new tariff will cost UK industries around 800 million pounds (over $1 billion) annually. The link is intended to reset relations between the EU and the UK following Brexit. While this link will allow countries on both sides to avoid carbon border tariffs, it is unlikely to go into effect before the EU’s January 1 start date.
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Further reading: EU countries ready to negotiate UK carbon market link
China to expand renewable energy use, looking to sustainable aviation fuel and green hydrogen
China’s National Energy Administration (NEA) aims to use excess wind and solar output to explore new renewable energy projects. In the new five-year plan, China hopes to expand industrial bases for sustainable aviation fuel, green ammonia, green methanol, and green hydrogen. A document outlining the 2026-2030 plan highlights the use of renewable energy, such as offshore wind, to produce green hydrogen and other new energy sources. As industry accounts for around 60% of China’s electricity use, renewables are critical for decarbonization goals. Currently, solar and wind can sometimes generate more electricity than the grid can accept. In an effort to stop this phenomenon, known as curtailment, the government aims to channel this energy into alternative uses.
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Further reading: China planning renewable energy expansion beyond power sector
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Accenture building in Norway. Cover Photo Credit: Wikimedia Commons
