No major G7 stock market index is aligned with the climate goals of the Paris Agreement: none is currently on a 2°C trajectory, let alone 1.5°C. But the average temperature trajectory is 2.95°C. And four of the seven indices lie on dangerous temperature trajectories of 3°C or more.
This is the conclusion of an analysis of the Science Based Targets Initiative (SBTi), in collaboration with the UN. As G7 heads of state and government meet from 11 to 13 June, SBTi calls for the largest listed companies in the G7 to urgently step up climate action to align with the Paris Agreement.
“This requires immediate action from the world's largest companies,” said Alberto Carrillo Pineda, member of the SBTi steering committee.
Fossil fuels indeed remain a key contributor to the emissions of the seven indices, even though they could strongly influence the rest of the world. "G7 companies have the potential to trigger a 'domino effect' of positive change throughout the global economy," said Lila Karbassi, head of programmes at the United Nations Global Compact and chair of the board of directors of the SBTi. "Governments must go further to encourage the setting of ambitious science-based goals."
This article was originally published in French on Paperjam and has been translated and edited for Delano.