1 in 3 Spanish firms setting emissions targets in line with Paris Agreement climate goal

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29% have set, or are in the process of officially setting, science-based emission targets, finds New CDP report covering 49 companies worth 86% of Spain’s market cap. Over half of the companies will have science-based targets by 2020, covering 80% of the total emissions of companies reporting. 8 in 10 companies have targets for reducing total emissions, but less than half had lower emissions last year as the total reported grew more than 10%. 4 Spanish companies named as environmental leaders on CDP’s A List: Ferrovial, Grupo Logista, Naturgy Energy Group and Telefónica.

A new report detailing how some of Spain’s biggest companies are increasingly setting the most ambitious, science-based emissions reductions targets is published today by CDP, the global environmental impact charity.

The CDP climate change report: Spain edition, released today in Madrid, finds nearly one third of the biggest companies reporting to CDP have already set, or are publicly committed to setting, emissions targets in line with what climate science says is needed to achieve the goals of the Paris Agreement.

Responses to CDP’s 2018 questionnaire reveal that, by 2020, this will rise to 53%, suggesting that such targets are increasingly a market norm for big companies.

Acciona, Ferrovial, Red Eléctrica, Skunkfunk and Telefónica already have targets officially approved by the Science Based Targets initiative (SBTi).

The study also finds that governance of climate change is very high among Spanish companies. 98% of reporting companies now integrate climate into their business strategy, while one in three link the pay of their executive team to the management of climate issues.

To manage the risks and opportunities presented by climate change, 80% of firms will be using different climate scenarios to inform their business strategies by 2020. So-called scenario analysis helps companies consider their performance in different ‘alternative worlds’, such as if global warming is limited to 2°C or lower as a result of vastly reducing emissions. 40% already use such tools.

The new CDP report follows the release of the Spanish government’s new National Energy and Climate Plan, which announced €47 billion in public investment and aims for 74% renewable energy for electricity by 2030. The Intergovernmental Panel on Climate Change (IPCC) said last year that the global economy needs a radical transformation to prevent climate change’s worst effects.

However, although the report evidences strong target-setting by Spanish firms, there was little evidence last year of companies successfully decoupling their growth from emissions. 39% of companies did reduce their emissions in 2018, but the 49 companies together reported a 12% increase last year as a result of increases in high-emitting sectors.

39 companies requested to respond to CDP by investors failed to do so in 2018.