Spanish public companies start with a huge delay in the race for decarbonisation spurred by the European Commission and the Ministry of Ecological Transition. In fact, only seven of the 25 main state corporations would comply at this time with the reporting objectives of polluting emissions and reduction of the carbon footprint established in the

Climate Change Law

that hastens its processing in the Senate, according to an analysis carried out by the consultancy Vivid Economics.

"Only three companies have developed climate action plans that can be considered serious," explains

Juan Carlos Arredondo

, the company's engagement manager and one of the authors of the study. The firm has focused its analysis on the companies owned by the

Sociedad Estatal de Participaciones Industriales (Sepi) and Aena

, although the trend is similar in the set of 120 companies controlled or administered by the Spanish Government.

Its main conclusion is that only 7 of the 25 companies analyzed currently have an emissions reduction plan in the way that is required in the new Climate Change Law promoted by Vice President

Teresa Ribera

. In other words, only one in four would meet the requirements of the new regulation. In the same sense, only 14 of them currently report information on the carbon footprint left by their activity. "It is a contradiction with the government's aspiration to align itself with international goals," says the analysis.

The bad data leaves the country's public companies in a very weak position to adapt to the requirements of

the Paris Agreement,

as other companies and private equity banks are already doing. The importance of these corporations getting the hang of it is key since, as the study points out, they are responsible for 4% of the country's total emissions. We are talking mainly about the

Hunosa

mining company

, the

IAG

airline

, the electric system operator

REE

and the airport operator

Aena

, which is not within the Sepi but where the Spanish State has a 51% controlling stake through Enaire .

"Most of the companies report concern about environmental issues, but few (7/25) have assumed a specific goal of reducing emissions", highlights Arredondo, former head of climate change policy in the Mexican government and advisor to several countries in decarbonization strategies. His conclusion in relation to Spain is forceful: "The investment portfolio of the Spanish government is not aligned with the Paris Agreement."

The delay in implementation would force Spanish public companies to cut their emissions by almost half over a 10-year period to meet climate goals.

However, this will depend on the type of company.

Groups linked to the air sector such as IAG or Airbus or the energy sector such as

Enagás

will have it much more complicated, while other companies such as

Correos, Indra or RTVE

would fall within the sectors that the consultancy defines as "rapid decarbonization".

In any case, the first goal that everyone should set is that of net zero emissions in 2050 and from there to work with realistic goals in line with the transformation of their businesses.

"Public companies are part of the problem and part of the solution," concludes Arredondo.

The Climate Change Law grants the Government a period of one year to specify, through an agreement of the Council of Ministers, which companies must comply with the information and emission reduction provisions. From that moment, the affected parties must prepare an annual report that includes an assessment of the financial impact of the risks associated with climate change due to the exposure of their activity. In the case of banks, as of 2023 they must publish specific decarbonization targets for their loan portfolio.

On the other hand, companies must present a plan to reduce greenhouse gas emissions for a time horizon of five years and detail the measures to achieve it.

The regulation is strict, since it requires reducing direct emissions and leaves "voluntary" actions in the hands of the companies themselves to offset the impact of their carbon footprint.

According to the criteria of The Trust Project

Know more

See links of interest

  • Work calendar

  • Home THE WORLD TODAY

  • Leganés - Ponferradina

  • Almeria - Espanyol

  • Leeds United - Liverpool