World’s Leading CEO Climate Alliance Slashes Emissions by 10% While Achieving 18% Revenue Growth in Three Years

New York, USA, 26 September 2024 - The Alliance of CEO Climate Leaders achieved a 10% reduction in aggregated emissions reductions between 2019 and 2022, based on an analysis of its members' emissions data. Launched alongside the signature of the Paris Agreement, the alliance is the world's largest CEO-led community focused on net-zero emissions, representing $4 trillion in revenue and 12 million employees in 12 industries, including healthcare, retail, heavy industry and agriculture.

"Bold and decisive leadership is needed to accelerate the net-zero, nature-positive transitions," said Gim Huay Neo, Managing Director, World Economic Forum. "Over the last three years, the Alliance of CEO Climate Leaders has successfully cut 10% of its aggregate emissions - equivalent to the annual emissions of France - while growing revenue ahead of global GDP growth and delivering significant value for their stakeholders. This clearly demonstrates that positive climate action does not have to come at the expense of economic performance".

During the same three years, alliance members recorded an 18% aggregate revenue growth, surpassing global GDP growth of 15%. This growth, amounting to over $640 million, was achieved while delivering the 10% reduction in absolute emissions across all three emissions scopes - equivalent to 450 megatons, roughly the annual emissions output of France or the United Kingdom.

"This is clear evidence of the value of membership in this type of alliance," said Feike Sijbesma, Chair of the Supervisory Board of Royal Philips and founding Co-Chair of the Alliance of CEO Climate Leaders. "The results prove that green growth is not just an idea for the future but a real value driver today. Moreover, they highlight the benefits of collaborative action for front-runners like the alliance members who are committed to driving real-world change. Our members continue to work together, sharing knowledge and learning from each other's transition efforts - which has helped us to achieve this remarkable value creation with simultaneous emissions reductions."

These reductions were made possible by the collective dedication of alliance members in addressing all three emissions scopes, with a particular focus on initiatives to tackle Scope 3 emissions which account for over 85% of the alliance's combined footprint. In 2023, for example, 19% more alliance members took action to address Scope 3 upstream emissions including sustainability criteria in their procurement decisions, supporting suppliers to measure and reduce emissions, and engaging in financing initiatives such as paying green premiums. Additionally, the number of alliance members addressing their Scope 3 downstream emissions, through a sustainability-focused product design and partnerships with clients to address life-cycle emissions, increased by 12%.

"The alliance is showing that businesses can collectively make significant progress towards implementing the goals of the Paris Agreement," said Sumant Sinha, Chairman and CEO of ReNew and Co-Chair of the Alliance of CEO Climate Leaders. "This group of 131 CEOs of the global Alliance comprises some of the largest companies across 27 countries, who are demonstrating that the economics of climate action can work in all regions - from emerging markets to developed economies. We hope these results encourage more businesses to join us in applying their knowledge and skills to transition to a truly global, net-zero economy that benefits communities all around the world."

The 10% decrease in absolute emissions is significantly ahead of the emissions reductions achieved by the world's biggest economies and emitters, including the United States (-2%) and the European Union (-3%). In contrast, India and China saw growth in emissions of 6% and 7% respectively, in the same period. The alliance's progress also surpasses the Science-Based Targets initiative pathway, which requires 42% Scope 1 and 2 emissions reduction and 25% Scope 3 emissions reduction between 2020 and 2030.

The Forum convenes communities to address all 17 Sustainable Development Goals and the Alliance for CEO Climate Leaders is an example of the initiatives that are a driving force in ensuring that progress is made in the most critical areas of sustainable development, including climate action and economic growth.

About the Sustainable Impact Meetings 2024

The Sustainable Development Impact Meetings 2024 are being held from 23 to 27 September in New York. Over 1,000 global leaders from diverse sectors and geographies will come together to assess and renew global action on the United Nations Sustainable Development Goals through a series of impact-oriented multistakeholder dialogues. The meetings are an integral part of the Forum's year- round work on sustainable development and its progress.

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