Target differences across Europe
The most glaring feature of the data gathered so far is the significant disparity in target setting between different European countries. The UK is ahead of its European peers. Around two thirds (64%) of the top 100 publicly listed companies in the UK have net zero targets. This represents 87% of total turnover among the top 100 UK companies, and 90% by market capitalisation. This compares to just a third of the top 100 French companies that have a net zero target, and represents less than two thirds (62%) of revenue, but 83% of market capitalisation among its top 100 companies.
Proportion of top 100 companies with Net Zero carbon emission targets
Source: Retail Economics/Accenture, based on sample of top-100 largest publicly listed European companies by market capitalisation in the UK, Germany, France and the Rest of Europe, for net zero commitment
Does size matter?
Our research shows that the largest 20 companies are significantly more likely to have clear net zero goals, evident in each of the four markets analysed. In the UK, four in five of the top 20 companies have net zero targets, compared to three quarters in Rest of Europe and Germany, and two in five in France. Interestingly, Germany shows the greatest gap between the largest 20 companies and the largest 100, falling from 75% of companies to 42% respectively.
The research shows that less than half (47%) of the 400 largest companies across Europe have committed to a net zero carbon emissions target date. The stark reality is that the vast majority of European corporates currently lie outside of the climate action debate, severely impairing the ability of business to play its part in mitigating the worst effects of climate change. Indeed, our research included a search of over 2,000 of the largest European companies, out of which over 80% of companies have no targets at all.
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This short insight article forms part of a series based on research detailed in a thought leadership report entitled “The Path to Net Zero Carbon Emissions” produced by Retail Economics in partnership with Accenture. It analyses over 2000 company policies across Europe (top 100s by market cap) to assesses the level of commitment within the private sector concerning carbon reduction emission targets and the goal to net zero by 2050.
