The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5°C and avoid the worst impacts of climate change. Every incremental increase in temperature above 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.
In its 10-K, Comcast Corporation (“Comcast” or “the Company”) acknowledges that “natural disasters, severe weather and other uncontrollable events could adversely affect our business, reputation and results of operations.” Such events are expected to become more frequent and more severe as climate change worsens. The Company’s current climate strategy fails to address its full carbon footprint, notably its full Scope 3 footprint, which is its largest emissions source. Comcast’s targets have also not been third-party verified for 1.5°C alignment. While its subsidiary Sky has set a near-term 1.5°C-aligned target and committed to net zero through the Science Based Targets initiative (SBTi), Sky produces a minority of Comcast’s total Scope 1 and 2 emissions[1] and likely a minority of its Scope 3 footprint, but this information is not disclosed.
Competitors across Comcast’s business segments, including AT&T, Netflix, Paramount, Sony, T-Mobile, and Verizon, have set, or committed to set, science-based GHG reduction targets through SBTi. SBTi-validated targets give investors confidence that companies are addressing their material carbon footprint in line with limiting warming to 1.5°C. Furthermore, competitors like T-Mobile, Verizon, and Walt Disney have quantitative, timebound targets for renewable energy. Investors increasingly seek disclosure of how companies are addressing climate risk and planning to transition their business models in line with limiting warming to 1.5°C. To assist companies in developing viable transition plans, groups including We Mean Business, State Street Global Advisors, and the Task Force on Climate-Related Financial Disclosures have provided guidance.
Comcast must take additional action to comprehensively address its climate impact and mitigate both the physical risks to its operations and the transition risks associated with new regulation and a global shift to a clean energy economy. Investors believe adopting 1.5°C-aligned science-based targets for its full material carbon footprint will help the Company mitigate these risks.