Transport giants ‘reinvesting less than 1% of revenues in low-carbon transition’
An analysis of the climate plans of 90 large global transport firms has revealed that most have no public plans to decarbonise their fleets, with the average firm investing just 0.3% of its revenues in low-carbon R&D.
Published today by the World Benchmarking Alliance (WBA), the analysis looks at the climate plans of 25 airlines, 17 shipping companies, nine rail operators, six road transport firms and 33 mulitmodal companies.
The analysis looks at whether the companies have announced net-zero targets or other long-term decarbonisation plans; whether they are supporting them with credible interim targets; how they are allocating investment in the low-carbon transitions; what climate-related policies they are lobbying for and against, and what plans they have to protect workers throughout the low-carbon transition.
The WBA found that 85% of the companies have fleets which they will not be able to operate in a low-carbon future. However, most do not have any public plans for changing their fleets. Just 7% of the companies have publicly stated plans to end the use of fossil-fuel-powered modes of transport.
Concerns are raised that, without strong planning, most companies are not investing to bring about the alternative fuels and vehicles they will need to transition to. On average, each firm was investing just 0.3% of its transport-related revenues into low-carbon solutions. 84 of the firms are not working with infrastructure operators on solutions.
Policy engagement on the low-carbon transition was also found to be weak. 87 of the 90 firms have shown no significant support for policy changes to advance the low-carbon transition.
And, when it comes to the just transition, less than half (43%) of the companies have a publicly available policy statement committing to respect health and safety of workers. And more than half (62%) were found by the WBA to demonstrate no measures on training, educating and upskilling workers. Only one company – First Group – publicly commits to both green and decent jobs.
While 38% of companies demonstrate measures on skills, training and education of employees, only FirstGroup publicly commits to both green and decent jobs, re- and up-skilling workers displaced by the low-carbon transition.
CDP is supporting the WBA on this benchmark and is warning that, without proper climate plans being published, investors and other key stakeholders are not properly able to measure and address opportunities and risks.
Transport accounts for more than one-third of annual global greenhouse gas emissions and, in some nations which have progressed with decarbonising power systems, including the UK, it is the highest emitting sector.
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