Credible Net Zero plans are few and far between among the FTSE 100, says new EY report.
Nearly 18 months after the Government’s COP26 pledge that UK listed businesses would be mandated to publish decarbonisation plans by 2023, only 5% of FTSE 100 companies have so far disclosed transition plans that would be deemed ‘credible’ or sufficiently detailed.
EY analysed Net Zero transition plans published by FTSE 100 businesses, as of 31 January 2023, and assessed them against the Transition Plan Taskforce’s (TPT) Draft Disclosure Framework.
The Framework, which is set to be finalised this year following industry consultation, outlines guidance for companies to create decarbonisation plans that can be deemed “credible, useful, and consistent”.
The Treasury’s TPT was announced in November 2021 at COP26, where it was pledged that all UK listed businesses and financial institutions would be required to publish Net Zero transition plans by 2023, although a specific date was not set.
EY’s analysis found that while 78% of FTSE 100 companies have disclosed partially-developed plans that include public targets to achieve Net Zero emissions by 2050, they have not yet adequately outlined how they will reach these targets, therefore missing key current TPT Framework requirements. Some 17% of FTSE 100 firms are still at the stage of setting targets and are yet to publicly disclose any plans.
EY’s analysis found that more than 80% of FTSE 100 firms have made public commitments to reach Net Zero carbon emissions by 2050.