Mind the gap: Corporate climate pledges in the time of EU energy crisis

February 21, 2022
By CSE

by CSE research team

Europe’s energy sector is suffering from extreme malaise

 

The future energy system will need to address all value chains of the energy sector while delivering energy transition and decarbonization goals, linking in an optimal way various energy resources and networks to the consumption sectors. Smart sector integration is expected to deliver a scalable solution to improve overall system efficiency, resiliency, allowing greater integration of renewables, while enabling flexible consumption and deeper consumer empowerment.

 

At a corporate level, while large companies routinely announce greenhouse gas emissions targets, few have derived targets based on global climate goals. Since the early 2000s, the Global Reporting Initiative has encouraged companies to disclose environmental performance in the context of environmental carrying capacities. This concept can be broadly understood as the maximum impact the environment can sustain without undergoing changes perceived to be unacceptable.

 

According to a recent report “the EU faces an implementation gap of six years in cutting greenhouse gas emissions from the energy sector by 2030. Decarbonizing the energy sector is crucial to achieve the net-zero target as nearly three-quarters of the EU’s total greenhouse gas emissions originate from the production and use of energy, notably from fossil fuels such as coal, oil and gas. In this context, the EU’s Fit for 55 legislation has set a 55%reduction target by 2030 for total emissions. For the energy sector, their proposal would result in a 45% emissions reduction by 2030. However, while the use of fossil fuels in the EU has been declining and renewable energy is on the rise, the annual emissions reductions still won’t be enough to limit global warming to 1,5 degrees Celsius. To comply with this goal, the EU needs EUR717bn of additional investments per year until 2030, including EUR118bn on the supply side (mainly for the new power plants and grids) and EUR599bn on the demand side (mainly for the transport and residential sectors).”

 

International climate finance (equity and debt investments, loan guarantees and grants) is an important enabler of low carbon investment and adaptation and adaptation projects. How to meet the investment requirements is important, as well as how to navigate the different financing terms. Forward-thinking policies and sustainability strategies require cross- sectoral strategies that integrate energy generation, grid operation and flexible demand in a single, resilient and low carbon energy system.

 

Corporate Sustainability Leadership and Τraining is key

With our European team and global expertise, CSE is uniquely positioned to help companies meet the challenges ahead. CSE’s Certified Sustainability Practitioner Program, Advanced Edition 2022, addresses European mandates, providing participants an edge in their efforts to keep their companies ahead of the game and accelerate their ESG transformation.

 

During the upcoming digital program, March. 10, 11 & 14, 2022, C-level executives and sustainability managers will learn how to apply corporate sustainability strategy and reporting efforts to meet the requirements of the European and other global legislation. This program combines cutting edge sustainability knowledge with real-world business cases and science-based targets, along with a cross-sectoral approach.

 

CSE annual research informs this program which focuses on Sustainability and ESG strategy for competitive advantage, Sustainability (ESG) Ratings and Reporting Trends, stakeholder engagement, investors’ relations and the most business-critical opportunities of 2022, with a focus on leading sectors of the global and local economy. It will feature updated content on the SDGs and Circular Economy.

 

This March you have the chance to drive your organization’s ESG transformation and get certified with the new GRI Universal standards.

 

Reach out for group discounts and our 2-certification package opportunity (ESG Practitioner and GRI Standards Training Course) at [email protected]

 

Over the past 15 years, more than 8,000 executives from leading organizations including Google, NASA, Coca-Cola, Timberland, the Federal Reserve Bank of New York, L’Oréal, ExxonMobil, Hartford, T–Mobile, Procter & Gamble, and Macy’s have been certified as Sustainability ESG Practitioners by the Center for Sustainability and Excellence (CSE).

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