Board directors of a growing group of FTSE 350 listed companies have said that nearly all (96%) have increased their expenditure on carbon offset projects or carbon credits over the past 24 months, with more than half doing so “dramatically,” according to new research shared with ESG Insight today.
The data also shows that nearly half of FTSE350 companies will increase their expenditure on carbon offset projects and carbon credits over the next two years.
Moreover, more than two-fifths say they will increase expenditure slightly. Just 11% will keep
expenditure the same as today, according to the research by Kana Earth, which builds ledgers for UK carbon offset units.
Race to net zero
The findings reflect UK businesses commitment to decarbonisation in line with the UK government’s race to net zero carbon emissions by 2050.
The research also presents an optimistic outlook for the FTSE 350’s effort to reach net zero.
More than a third (35%) of FTSE 350 companies say they are already carbon neutral while 60% say they are well advanced on their route to carbon neutral. Five percent say they are quite well advanced.
This level of advancement reflects the levels of ESG governance at FTSE350 companies.
More than a quarter (27%) of respondents say they have had a Sustainability Committee focusing on environmental impact issues for between five and seven years.
Forty-six percent say they have had a sustainable committee on the board for three to five years; 18% have done so for between two and three years. Three percent of FTSE 350 companies have used a committee from between seven and 10 years.
Five percent have employed a sustainability committee for one to two years and just 1% have a structure in place for less than a year.
In terms of support in accessing the carbon offset market, more than half (55%) of FTSE 350
companies have a specialist in house team; 70% rely on external consultants; 39% use domestic government sources; 41% use domestic regulators while 5% refer to global regulators or other international bodies.
- Helen Goulden OBE: there is ‘Work to be done’ for UK businesses to include ‘S’ in ESG
- Analysis: What does the future hold for Green, Social and sustainable Bonds?
- Investors increasingly demand detailed data to understand their companies’ ESG efforts
- Opinion: Why ESG integration is required to promote a just energy transition in Africa