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December 17, 2016

Companies Challenged to Adopt Science-Based Climate Goals
    by Robert Kropp

Over 100 publicly traded companies have reported to CDP that they will adopt science-based emissions reduction plans, and letters from members of the Interfaith Center on Corporate Responsibility intend to hold them to their promises.

SocialFunds.com -- It's still too early to know with certainty what will happen to support from the US for the Paris climate accord, but the outlook is not good. President-elect Trump's choice to run the Environmental Protection Agency is Scott Pruitt, who has repeatedly sued to agency itself over environmental regulations; he also disputes the scientific validity of climate change. And the Department of Energy has stated it will reject Trump's request for �a list of employees who worked on various climate change priorities in President Obama�s administration, including the Paris climate agreement and the social cost of carbon.�

Yet, regardless of the position on climate change to be taken by the incoming administration, the science of climate change is indisputable; so much so that according to the
Interfaith Center on Corporate Responsibility (ICCR), over 100 publicly traded companies �indicated in answers on the CDP�s annual Climate Survey that they would be adopting science-based targets within the next two years.�

Considering the current political winds, it is most timely that ICCR members have
sent letters to those companies, �calling on the companies in which we invest to develop robust, science-based targets to aid in this transition� to a low-carbon economy. According to the Science Based Targets initiative, a science-based emissions reduction target is �consistent with the global effort to keep temperatures well below the 2-degree threshold.�

As a faith-based investor organization, ICCR has since its founding in the early 1970s highlighted the imperative of aligning moral values with investment strategies. �The world�s poorest, most disadvantaged communities, those who have benefited least from the growth of the fossil fuel-driven economy, are predicted to be most directly impacted by climate change,� Rev. Michael Crosby said. �Ethical business practices are in the long-term interests of these companies and they should act quickly to reduce GHG (greenhouse gas) emissions by adopting meaningful and science-based targets.�

Yet the long-term financial sustainability of companies makes a compelling case for setting science-based GHG reduction targets as well, ICCR members point out in their letters. �Ambitious emissions reduction targets provide the context needed for strategic investments to transform business models, create and penetrate new markets, prepare companies for regulation, and help identify risks and opportunities,� the letters state. �Moreover, according to CDP analysis, strong targets are associated with positive financial returns.�

�Industry leaders recognize that the setting of robust GHG reduction targets is critical for the long-term vitality of their businesses,� ICCR Program Director Christina Herman said. �We are hopeful that our letter helps companies to see the importance of their contribution to the fight to preserve a stable climate on which the global economy depends, and moves them to make their emissions reduction promises a reality.�

While a majority of companies have established some form of emissions reduction goals, the infrequency of science-based targets means that only one-quarter of reductions required by science will be realized, according to a recent
CDP report. But according to Paul Simpson, CEO of CDP, �We have seen a significant increase in the number of companies committing to set science-based targets since the Paris agreement.�

�We need to build on this momentum and bring the rest of the business world on board,� Simpson continued. �With the private sector responsible for up to 70% of global emissions, it is critical that they act now to prevent the most dangerous effects of climate change.�

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