Dubai hosted the 28th Conference of the Parties to the Framework Convention on Climate Change (UNFCCC COP28). In this blog, we share Planet Tracker’s insights and identify what financial institutions should take away from this latest climate summit.

Planet Tracker’s latest report, Toxic Footprints Europe, identifies 1,093 facilities in the trilateral chemical region (Belgium, The Netherlands, Germany), which are found to have released and transferred 125 million tonnes of chemicals since 2010, resulting in 24,640 years of healthy life lost and 57 billion fractions of species affected.

Toxic Footprints Europe

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New analysis of one the world’s largest concentrations of petrochemical facilities pinpoints the most polluting producers and exposes investors for overlooking impacts. The report finds the region has released 125 million tonnes of chemicals since 2010, resulting in devastating consequences for human and environmental health, including 24,640 years of health life lost and 57 billion fractions of species affected.

From 2019 to 2021 Air Liquide experienced a weighted absolute increase of 16% in total Scope 1, 2 and 3 emissions. Without further mitigation, Air Liquide will overshoot SBTs by a significant 243%, failing to align with a 1.5°C pathway by 2030 or a well-below 2°C warming scenario by 2035. However, Planet Tracker does not anticipate that this will happen if the company follows through with its forward-looking disclosed initiatives.

While Air Liquide seems poised for a 1.5°C pathway, Planet Tracker recommends a close monitoring of the company’s climate transition investments outcomes, to ensure its progress toward the intended target.

As decisions over the future viability of deep sea mining are under review, Planet Tracker’s latest report ‘The Climate Myth of Deep Sea Mining’ examines deep sea mining companies’ claim that mining polymetallic nodules could be a low carbon alternative to mining on land.

Comparing three academic lifecycle assessment studies evaluating the ‘nodule-to-commodity’ climate impact of metals produced from polymetallic nodules and land ores reveals that deep sea nodules could have 28% higher or 76% lower climate impact than land ores. Planet Tracker believes that such a marked variation in results is not a good enough basis for making decisions about the future of deep sea mining.

Incitec Pivot appears to be on course for a 1.5°C pathway by 2030, contingent on the successful implementation of its mitigation projects. By 2030, the majority of Incitec’s total GHG emissions will come from downstream Scope 3 activities (43%), followed by Scope 1 activities (32%). Without further mitigation, Incitec Pivot’s total GHG emissions will overshoot SBTs by 23%, pushing its 1.5°C pathway alignment towards a well-below 2°C warming scenario by 2030.

Incitec Pivot demonstrates a robust commitment to its climate transition with ambitious greenhouse gas (GHG) reduction targets and proactive risk management. The company’s revised transition plan aims to achieve a 42% absolute reduction in emissions by 2030 and Net Zero by 2050. A more detailed connection between mitigation projects and transition investments would enhance Incitec’s transparency and align the company’s efforts more clearly to its 1.5°C target by 2030, and subsequent Net Zero by 2050.