Pedro Faria, CDP: Companies need science-based targets because “there is no business case in a wrecked planet”

Author:
Ilario D'Amato
21 January 2016

Pedro Faria, Technical Director, CDP

LONDON: Setting science-based targets to tackle climate change “will drive innovation inside the companies; it will be a signal of leadership, it will bring cost reductions, it will bring disrupting technology and business models,” says Pedro FariaTechnical DirectorCDP, in The Climate Group’s latest Climate TV interview.

CDP, which is a member of the We Mean Business coalition along with The Climate Group, provides clear and transparent environmental data from companies and cities that want to measure, disclose, manage and share this information with the public.

As such, CDP is a crucial partner for The Climate Group in the Compact of States and Regions initiative, the first global reporting mechanism for sub-national governments committed to share and analyze their climate efforts.

Comprising governments representing 2.81 gigatons (Gt) of CO2 equivalent, the signatories of the Compact will save 47.4 GtCO2e by 2050 relative to ‘business as usual’ (equaling world GHG emissions in 2012), reducing their collective emissions by almost 55% in absolute terms.

THE BUSINESS CASE

But in today’s global market, accountability is key not only for governments toward their citizens, but also for businesses to their customers. “We need to transition, and companies will need to transition” toward a low carbon economy, explains Pedro Faria. “It’s fundamental that companies adopt science-based targets, because there is no business case in a wrecked planet.”

Such targets must follow a long-term path because “we are in a long-term journey in terms of decarbonization”, he explains. At the same time, setting many achievable short-term goals within this long-term journey can actually “create accountability for their external stakeholders and even internally, to know how they are doing in terms of their long-term goals,” continues Pedro Faria.

The historic Paris Agreement which was adopted at COP21 last December is pivotal to setting this pathway, helping establish a long-term framework for businesses to grasp the opportunities of climate action.

“Reporting on your carbon emission is fundamental,” says Pedro Faria, since it’s the first step of such an inevitable journey all companies must go through. It also “creates transparency, creates accountability, creates engagement with your stakeholders, your value chain and your clients”, the Director explains.

CDP is also collaborating with The Climate Group on the RE100 campaign, which is helping more than 50 of the most influential companies in the world on their journey to go 100% renewable. “Consumer demand is driving a transformation in the power industry,” concludes Pedro Faria. “RE100, by gathering large consumers, gives a really strong signal to the power industry about the need to decarbonize.”

  • Find out more about our RE100 campaign to encourage the world's most influential companies to go 100% renewable
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