155 Global Firms Back ‘Net-Zero’ Covid-19 Recovery

World leaders have determined that coronavirus recovery is not nearly enough to help humanity. They believe that a mental, economic and political reset is needed to return to economic resiliency and growth.

Consequently, 155 global companies are jointly urging governments to align their covid-19 economic aid and recovery efforts with the latest climate science making this the largest ever UN-backed CEO-led climate advocacy effort, according to Science Based Targets initiative, the UN Global Compact, and the We Mean Business coalition.

These firms, with a combined market capitalization of more than $2.4 trillion and employing in excess of 5 million people, have reaffirmed their own science-based commitments to achieving a zero carbon economy and called on governments to match their ambition.

The business leaders noted that the coronavirus outbreak is a stark reminder of the fragility of the world’s current economic system. They also said the pandemic reminds world governments and businesses that science must be the collective guide on the path to a more resilient economy. Setting and working towards science-based targets is the best way for companies and governments alike to protect against future climate-related business and economic disruptions, they indicated.

As urgent discussions on recovery packages around the world have been ramping up, the companies, which are all part of the Science Based Targets initiative, are calling for policies that will build resilience against future shocks by supporting efforts to hold global temperature rise to within 1.5 C (34.7 F) above pre-industrial levels, in line with reaching net-zero emissions well before 2050.

The announcement comes as countries are preparing trillions of dollars worth of stimulus packages to help economies recover from the impacts of the coronavirus pandemic, and as they prepare to submit enhanced national climate plans under the Paris Agreement. In the coming weeks, several major economies will take key decisions in their recovery efforts, including the European Union Recovery Plan, new stimulus packages from the United States of America and India, and the G7 Heads of State summit in June.

These companies have already set, or committed to set, science-based emissions reduction targets, according to the announcement. By signing the statement, they are reaffirming that their own decisions and actions remain grounded in science, while calling on governments to “prioritize a faster and fairer transition from a grey to a green economy.” Policy and spending that incorporates climate targets will reduce vulnerability to future shocks and disasters, create good jobs, reduce emissions and ensure clean air, according to a study from Oxford University, thus making the planet better for future generations.

“Saving lives and livelihoods, and building a prosperous, inclusive and sustainable future, are at the heart of our efforts to recover from covid-19,” said UN Secretary-General António Guterres. “We can beat the virus, address climate change and create new jobs through actions that move us from the grey to green economy. Many companies are showing us that it is indeed possible and profitable to adopt sustainable, emission-reducing plans even during difficult times like this. I warmly welcome the ambitious, science-based actions we are seeing from leading companies who are demonstrating to policy-makers that green growth remains the best growth strategy.”

The business voices are convened by the Science Based Targets initiative (SBTi) and its Business Ambition for 1.5C campaign partners, the UN Global Compact and the We Mean Business coalition. The SBTi, which is a collaboration between CDP, the UN Global Compact, World Resources Institute and WWF, independently assesses and validates corporate climate targets against the latest climate science.

“Governments have a critical role to play by aligning policies and recovery plans with the latest climate science, but they cannot drive a systemic socio-economic transformation alone. To address the interconnected crises we face, we must work together as an international community to deliver on the Sustainable Development Goals and the Paris Agreement,” said Lila Karbassi, chief of programs at the UN Global Compact, and Science Based Targets initiative board member. “As the largest ever UN-backed CEO-led climate advocacy effort, these companies are leading the way in driving ambitious science-based action and advocacy to help reduce vulnerability to future shocks and disasters.”

“It is imperative that we not only restart the world economy — but also reset it. It would be a tragedy if after spending $10-20 trillion of public money we simply rebuild the same unequal, vulnerable and high carbon economy we had before,” said Dr. Andrew Steer, president and CEO of World Resources Institute and SBTi Board Member. “We applaud the leaders of these 155 companies, who are not only committed to resetting their own companies but are also demanding that the world’s governments act in the light of the best science and best economics which shows that climate-smart policies will create more jobs and stimulate resilient, inclusive economic growth.”

The signatories span 34 sectors and have headquarters in 33 countries: Abdi Ibrahim Pharmaceuticals, ACCIONA, Accor, Adobe, Agder Energi, Arabesque, Arc'teryx Equipment, AstraZeneca, Auchan Retail Portugal, Bayer, Beiersdorf, BIAL, Bonava, Burberry, Capgemini, Cargotec, Carlsberg Group, Cellnex, CEWE Stiftung & Co. KGaA, City Developments Limited, CMA CGM, Coca-Cola European Partners, Colgate Palmolive Company, Corbion, Cranswick, Dalberg Advisors, Dalmia Cement (Bharat) Limited, Danfoss Group, Diageo, Diam Group, dormakaba, Dutch-Bangla Pack, EcoVadis, EDF Group, EDP Energias de Portugal, Electrolux, En+ Group, Enel, ERM, Europcar Mobility Group, Ferrocarrils de la Generalitat de Catalunya, Firmenich, Gleeds, Glovo, Grundfos Holding, Grupo Red Eléctrica, GSMA, H. Lundbeck, H&M Group, Henkel, Hewlett Packard Enterprise, Husqvarna Group, HP Inc., Iberdrola, ICA Gruppen, Inditex, Ingka Holding, Inter IKEA Group, Intuit, JLL, Kearney, Kelani Valley Plantations, Kuehne + Nagel International AG, LafargeHolcim, Legrand, Lojas Renner, Maeda Corporation, Magyar Telekom, Mars, Marshalls, Marui Group, Media 6, Movida Participações, MP Pension, Natura & Co., Nestlé, Nomad Foods, Novartis, Novo Nordisk, NR Instant Produce Public Company, O. T. Sports Manufacture, Orange, Orbia Advance, Orkla, Ørsted, Pearson, PensionDanmark, Pernod Ricard, PVH Corp., Refinitiv, Ronald Lu & Partners, Royal DSM, RSE (Ross-shire Engineering), Safaricom, Saint-Gobain, Salesforce.com inc., Sanofi, Scania, Scapa Inter, Schneider Electric, Schüco International, SIG Combibloc, Signify, Sky, SkyPower Global, Sofidel, Sonae Sierra, Sopra Steria Group, Stora Enso Oyj, SUEZ, Symrise, Syngenta Group, Takasago International Corporation, Talawakelle Tea Estates, Tate & Lyle, Tech Mahindra, Telefonica, The Co-op, The Lux Collective, TMG Automotive, Unilever, Vattenfall, Vaude Sport, Verbund, Vestas Wind Systems, Vodafone Group, Wipro, Yarra Valley Water, YKK Corporation, and Zurich Insurance Group, among others.