Just 5% of FTSE 100 companies have ‘credible’ net zero plans

Despite 78% of the UK’s biggest companies publicly committing to achieving net zero by 2050, only 5% have published ‘credible’ plans, according to research of FTSE 100 businesses by EY. Nearly a fifth of FTSE 100 firms are still in the process of setting targets and have not made any public commitments around net zero.

Last November, the Transition Plan Taskforce (TPT) launched a draft disclosure framework designed to hold companies to account and ensure they publish “credible, useful, and consistent” net zero plans. Businesses were expected to publish their net zero transition plans in line with the disclosure framework this year once it is finalised following industry consultation.

Of the 5% of companies that have published credible plans, EY found that many still have work to do before they can be considered fully TPT-aligned, due to gaps in reporting across areas such as financial planning.

The findings follow research from the CDP in February, indicating that fewer than 1% of businesses around the world have adequate climate transition plans in place. Against 21 key indicators in CDP’s climate change questionnaire, just 81 companies (0.4% of the total reporting) disclosed all relevant information, which include topics such as governance, financial planning, risks, targets and emissions reporting.

Speaking on EY’s findings, the company’s managing partner for sustainability, Rob Doepel, said: “Businesses should now be clear about what credible, detailed plans need to look like, and should have a good idea about the direction regulation is moving in. There can be no excuse for being unprepared and the UK’s largest businesses need to push ahead with developing detailed, actionable plans that enable their organisations to transition and reap the benefits of net zero.”

Business inactivity around climate matters was a central theme of the UN Secretary-General’s speech at a conference in March to launch the Synthesis Report of the Intergovernmental Panel on Climate Change (IPCC). At the event, secretary-general António Guterres called on businesses – particularly those in high-emitting industries such as oil and gas – to “supercharge” net zero efforts, noting that “partial pledges won’t cut it”.