Colgate-Palmolive on a +3ºC pathway with ‘no clear strategy’ for Scope 3 emissions
In the next decade the consumer goods giant could be hit by a USD 2.1 billion increase in annual operating costs due to potential Carbon Pricing Mechanisms and water scarcity.
Colgate-Palmolive is on a path to missing its approved Science-based Targets emissions by a factor of 7 when optional indirect use emissions are excluded.
The company provides ‘no clear strategy’ to mitigate its main source of emissions, namely, upstream Scope 3 activities.
The consumer goods giant’s climate engagement with its value chain partners has not resulted in positive results over the last half-decade, with the GhG emissions from key ‘targeted’ areas experiencing substantial growth.
Planet Tracker’s latest report on CA100+ companies today finds Colgate-Palmolive’s emissions are on a pathway seven times higher than the level recommended by the Science-Based Targets initiative (SBTi), aligning with a +3ºC warming scenario by 2030.
Colgate-Palmolive may be significantly underestimating the risks associated with potential Carbon Pricing Mechanisms, by failing to quantify the financial impact of its emissions, particularly regarding upstream Scope 3 activities. Failure to mitigate scope 3 emissions alone could result in an increase of costs of over USD 1.1 billion per year in the next decade due to expected carbon costs, representing 31% of its current five-year average annual operating profit.
