Irish Companies Emissions Drop by Over a Third

Average operational carbon emissions from Irish companies reporting on their environmental performance to CDP reduced by over a third last year, according to the environmental charity’s Annual Report 2021. Average Scope 1 and Scope 2 emissions per responder totalled 32,577 tonnes of CO2 equivalent, compared to 50,483 in 2020, a decline of 36%.

The trend over the past 4 years shows that in general companies are making good progress from merely setting climate change targets, to implementing initiatives to reduce their environmental impact, although the decline in average emissions for 2021 was helped by some Covid-related reduced activity and the smaller size of some of the new responder companies.

Scope 1 emissions are direct emissions from a company’s owned or controlled sources, Scope 2 are indirect emissions produced in the generation of energy purchased by reporting companies. Decarbonisation of the Irish electricity grid and improved fuel efficiency have played a significant role in this reduction.

CDP Report on Irish Companies

The report showed 55 Irish headquartered companies reporting under CDP’s rigorous evaluation procedure, an increase of 17%1, with well-known Irish listed companies like AIB Group, CRH, Kerry and Kingspan all in the Top 10 list of performers. 79% of Irish respondents achieved a B- grade or higher compared to 69% across Europe and 66% globally.

But while there is clearly an improved focus and attention on addressing climate change from Irish companies, CDP highlights that this issue is far from under control. In fact, the report highlights the need for companies to accelerate their decarbonisation efforts, in particular in their Scope 3 value chain emissions, if we are to avoid the catastrophic impacts of irreversible global warming.

In addition to providing evidence of decarbonisation initiatives, companies looking to improve their performance in their CDP ranking can also do so by making commitments to reduce carbon emissions through the Science-Based Targets Initiative (SBTi). 19 companies reporting to CDP Ireland have had their SBTi targets approved, with 25 more committed to setting them. SBTi sees companies set targets in line with the level of decarbonisation required to keep global temperature increase well below 2 degrees, consistent with the goals agreed at the 2015 Paris Climate Conference.

CDP Ireland Network

The CDP Ireland Network will continue to encourage non-responding companies to report and believes that non-disclosing companies will increasingly be at a competitive disadvantage. While their progress in Ireland can be seen as positive, they still have a mountain to climb. Only 1% of companies who submit climate change-related data globally to CDP have provided investors with a credible plan for the transition to a low-carbon economy.

Commenting on the publication of the list, Eoin Fahy, Chairman of the CDP Ireland Network said:

“It is great to see the CDP Ireland network going from strength to strength, with a 17% increase in Irish companies reporting in 2021. This is a minimum first step companies should take to demonstrate to their investors, their customers, and their staff that they are taking their responsibilities seriously. An increasing number of companies are putting in place scientifically verified Net Zero targets, with specific plans in place for how these will be achieved. Vague aspirations to go green are no longer good enough; it must be backed up by concrete proposals.”

Brian O’Kennedy Executive Director, CDP Ireland Network, said:

“As investor and customer scrutiny of sustainability measures increases it is clear that environmental reporting is now a key feature of many Irish companies’ annual reporting cycle. Despite the challenges of Covid-19, there has been a massive 60% increase in Irish companies reporting to CDP over the past two years. CDP’s methodology is transparent, rigorous and well regarded by the investment community, making it an excellent route for companies to provide third-party verification of their efforts.”

Maxfield Weiss, Executive Director of CDP Europe said:

“With more transparency comes bolder ambition, as companies recognize the benefits of acting early to mitigate the risks of business as usual and take a leadership position. I was encouraged by the heightened focus at COP26 on implementation, and the recognition that having a target is just stepped 1. Corporates and financial institutions are now being asked by governments and their investors to set out credible transition plans.”

The CDP Ireland Climate Change Report 2021 has been launched at a virtual event by the Minister for the Environment, Climate and Communications Eamon Ryan T.D. Attendees can register here for the event or access the 2021 report at www.cdpirelandnetwork.net.