The increasing rate and number of climate related disasters is raising alarms globally, making the corporate sector’s contribution to climate mitigation a significant policy issue.

Beyond environmental and social harms, climate change is creating systemic economic risks. The Commodity Futures Trading Commission last year underscored that climate change could impair the productive capacity of the U.S. economy.

Shareholders increasingly concerned about material climate risk to their companies and their portfolios are seeking clear and consistent disclosures, including credible climate transition plans. In response to material climate risk, the Climate Action 100+ initiative (CA100+), a coalition of 615 investors with $60 trillion in assets, issued a Net Zero Benchmark outlining metrics that create climate accountability for companies and transparency for shareholders. Indicators 1 through 5 of the Benchmark seek reporting on companies’ net zero emissions ambitions; short, medium and long term greenhouse gas (GHG) reductions goals aligned with 1.5 degrees; and strategic action plans to achieve decarbonization targets.

UnitedHealth Group Inc. is a diversified healthcare company. Our company has undertaken limited emission reduction activities, such as some energy efficiency projects and the purchase of some renewable energy credits. While our company has established a goal to achieve a 3% reduction of Scope 1 and Scope 2 emissions by 2023 from a 2017 baseline, this goal is not adequate to reduce emissions in line with 1.5 degrees, which would require more than 8 times our company’s existing target. Furthermore, our company’s current reduction goal covers only 55 percent of its operational emissions. UnitedHealth also fails to establish Scope 3 reduction targets.

Our company has established a goal to achieve net zero emissions by 2035, but this commitment appears to rely primarily on carbon offsets rather than direct mitigation. Science-based targets and the CA100+ Benchmark seek direct emissions reductions, with no more than 10% achieved through use of offsets.

By setting 1.5 degree aligned targets, reporting an effective climate transition plan, and demonstrating progress toward achieving 1.5 degree aligned GHG reductions, UnitedHealth Group can provide investors with assurance that management is appropriately reducing its climate contribution and addressing growing climate-related risks.