United Bankers backs CDP campaign asking big emitters to meet 1.5°C goal

October 25, 2022 Helsinki: United Bankers is proud to join a group of 318 financial institutions and multinational firms with $37 trillion in assets and spending power in calling on over 1,000 of the world’s highest impact businesses to set emissions goals in line with the Paris agreement’s 1.5°C goal.

 

The 2022 CDP Science-Based Targets campaign is coordinated by the global non-profit CDP, which runs the world’s environmental disclosure system.

 

Uniter Bankers is pressing the targeted companies to set an emissions reduction target approved through the Science Based Targets initiative, the industry standard for credible climate targets that cover all of a company’s value chain emissions.

 

Seela Sinisalo, Head of ESG at United Bankers, says:
“Responsible investment is at heart of United Bankers. We support CDP, because the campaign encourages companies to publish information about their emissions and impacts, and now also to set science-based targets. The global need for green transition is evident and the window for reaching the goals of the Paris agreement is closing. With the sustainability data from the CDP campaign, we can as investors better identify companies that are ready to set rigorous climate and sustainability targets, and work actively to reduce their emissions. This is essential in our sustainable investment strategies. We are glad to see the CDP campaign grows, and proud to contribute to these efforts.”

 

CDP sent letters on behalf of United Bankers and the other participating organizations to over 1,000 companies worldwide, including China’s largest retailer JD.com, Australian flag carrier Qantas, the world’s biggest chemicals firm BASF, as well as Caterpillar, FedEx, General Electric, Wal Mart de Mexico and Wilmar International.

 

The CDP campaign grew by over 30% since last year, both in terms of the number of supporting organizations and their collective assets and purchasing power.

 

The 1,000 companies targeted are critical for global efforts to limit global warming to 1.5°C. They are the source of 7 gigatons of Scope 1 and 2 emissions and have a combined market value of over US$25 trillion (44% of the entire MSCI All Country World index).

 

Laurent Babikian, Joint Global Director Capital Markets at CDP, said:
“The past few months of extreme weather have again shown us what a warming world does at 1.2 degrees. Companies must urgently set targets through the SBTi if we are to reduce emissions at the pace and scale required to avoid the most serious impacts of climate change. We are encouraged by the continued growth and success of this campaign, demonstrating that financial institutions see science-based targets as essential for all companies, and necessary for them to meet their own net-zero ambitions.”

 

Globally, over 3,500 companies representing over a third of global market capitalization are already part of the SBTi. Among these, over 1,200 have approved 1.5°C targets. SBTi data shows the typical company with a target cuts emissions by 8.8% per year – above the 4.2% required to align with a 1.5°C path.