Major companies including Coca Cola, Unilever, Salesforce, Velux and Signify, have voiced their support for a new ambitious EU-wide target.

A new position paper by Corporate Leaders Group (CLG) Europe, convened by the University of Cambridge Institute for Sustainability Leadership and backed by the companies, calls on the EU to reduce its 2040 greenhouse gas emissions by at least 90 per cent.

The report asks the EU to set this net reduction target, compared to 1990 levels, to avoid passing irreversible tipping points. This should include no more than 8-10 per cent coming from carbon removals. The 2040 target is also an opportunity for the EU to send a clear signal to businesses that climate action will remain at the heart of the EU’s political agenda for the next two decades, according to the report. This will provide them with the predictability they need to invest early in the transition. Examples in the report include switching to low carbon energy, decarbonising building stock and developing low carbon materials.

Meeting the current 55 per cent GHG reduction goal will be an essential pre-requisite, according to the report, but the EU is currently not on track to achieve this target.

Ursula Woodburn, director of Corporate Leaders Group Europe, said: "CLG Europe has been a longstanding proponent of setting ambitious climate targets to encourage businesses to decarbonise in a way that benefits the economy and society. The target we are now calling for of 'at least 90 per cent' emissions reductions by 2040 is necessary, desirable and feasible. It will send a strong signal to speed up both decarbonisation efforts and the clean energy transition, and to increase the EU’s industrial competitiveness, including through the successful implementation of the Fit for 55 package by 2030.”

The target represents a level of ambition aligned with the Paris Agreement to limit global warming to 1.5C degrees. It is based on assessments conducted by the European Scientific Advisory Board on Climate Change (ESABCC), and modelling by organisations such as Climact and Agora Energiewende.

The report states that investment from businesses would have multiple knock-on benefits, from creating new jobs and generating economic growth, to improving health and well-being and advancing competitiveness. It follows a recent commitment by companies such as Coca Cola, Salesforce and GSK to reach net-zero emissions by 2040 under the Climate Pledge.

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