2Sustain

A global study conducted by Carbon Disclosure Project (CDP) has found that transport companies are lagging behind other sectors in mitigating greenhouse gases and setting targets.

The first comprehensive report of its kind, this study surveyed 291 of the largest transport companies in the world, including those that cover road, rail, sea and air transport. The results show that:

• Even though the transport industry now accounts for 13 percent of global emissions and is one of the fastest energy-demand sectors, responsible for 60 percent of oil consumption in high-income countries (OECD countries), only 36 percent of transportation firms have set carbon and energy reduction targets. By comparison, over half (51 percent) of the ‘Global 500 Index’ of companies across all sectors have set reduction targets.

• Only 9 percent of the transport companies participating in the study report information on current investments in emissions reduction and alternate low-carbon options. Just 4 percent report on future investments.

• Road transportation accounts for 80 percent of the sector’s total CO2 contribution, followed by air (13 percent) and sea transportation (7 percent).

• Just 53 percent of transport companies surveyed responded to CDP’s request, indicating a lower level of engagement compared to the ‘Global 500’ which had an 82 percent response rate.

• Asia had the highest percentage of companies reporting on investment in low-carbon alternatives (48 percent). Europe had 36 percent. Just two companies in the US (8 percent), reported on investment in low-carbon alternatives.

On the bright side, the CDP report also points out that there are a small handful of companies reporting significant investments in low-carbon initiatives and innovations in the transport sector. The list of recognized companies includes: Air France-KLM, Easyjet, Canadian National Railways, Toyota, and UPS.

“As the first real glimpse into the transport sector’s impact on climate change, I’m pleased to see that there are some clear leaders making good progress in setting targets and making investments in low-carbon alternatives,” says Zoe Tcholak-Antitch, vice president and head of Investor CDP. “The overwhelming conclusion, however, is that the sector as a whole needs to transform and realize the opportunity to make a profound impact on the environment and the business benefits to reducing emissions. Those companies which are already investing in that transformation will be better positioned for a carbon constrained world.”

The full Carbon Disclosure Project Transport Report is available here.