Thales
The Carbon Disclosure Project awarded Thales the highest recognition for its environmental practices. This recognition is important according to Sophie Le Pennec, Thales Group vice president for Health, Safety & Environment.
What is the Carbon Disclosure Project? Why is it important to rate Thales?
The Carbon Disclosure Project (CDP), an international non-profit organization, was established in 2000. The CDP has collected information from cities, regions, businesses, and individuals around the world every year since 2003 to determine their environmental impact. This includes companies’ greenhouse gas emissions, climate strategies, and company greenhouse gas emissions.
The CDP announced that Thales was ranked Leadership at the highest level (A/A+), which recognizes companies that have used best practices in combating climate change.
We are very encouraged by this recognition, as the CDP is an international leader that, unlike other initiatives takes into consideration the requirements of both the Paris Agreement (and the IPCC recommendations).1TCFD2 . The CDP maintains the largest environmental performance database of cities, regions, companies. They encourage them to develop a strategic plan and measure their environmental impacts so they can take action. Customers and investors closely monitor the CDP’s annual ranking.
How does CDP calculate its ratings? What criteria does it use to determine its ratings?
The CDP uses Level of Engagement Scores to rate companies A to D- based their environmental impact and actions in three areas: climate, forests, and water security.
The four categories that reflect different levels of governance and management are leadership (A), management of environmental risks (B), awareness (C), understanding of the importance and disclosure (D). The CDP updates every year with a comprehensive questionnaire that requires companies to provide all information and answer all questions.
Thales was recognized for its efforts to reduce its CO2 emissions, its Scope 1, 2 & 3 commitments, and the solid governance system it has established to implement the Group’s low carbon policy. But most importantly, its results.
Only 200 companies were awarded an A/A for their climate change efforts last year out of nearly 12,000 surveyed.
Thales is a leader in the industry, so does that mean Thales is the best?
Yes. Yes.3ESG, or?4In financial circles. We plan to accelerate that policy as we announced on October 5th at our first Investor Day dedicated ESG topics (Thales accelerates its ESG Action Plan to help build a safer and greener world | Thales Group).
What were the main objectives of the action plan that was announced in October?
The Group announced it will aim to achieve a 35% reduction of CO2 emissions operationally by 2023, a half-decrease by 2030, and a net zero reduction by 2040. These targets are consistent in the Paris Agreements goals of limiting global warming below 1.5C.
Thales has also committed that 100% of its new products, services, and products will be eco-designed before 2023. In addition, the Group will work more closely with suppliers to help them reduce carbon emissions. All action plans from the 150 polluting suppliers will have been analyzed and launched by 2023. It will also engage partners in the supply chain to make them conform to its goal of reducing greenhouse gas emissions by 50% by 2030.
Thales will continue challenging its commitments, and will review its targets this year for other emissions. It will submit its roadmaps in 2022 to start the SBTi5(Science-Based Target Initiative) certification and have them validated.
Thales will continue to use its knowledge to combat climate changes, whether it is in civil aviation, where its systems optimise flight paths and aircraft operations; in sensors and satellites to expand space-based surveillance capabilities to better understand climate phenomena; or in artificial intelligence, Thales being the first company to create “frugal” AI algorithms that require very little energy.
Only 200 of the 12,000 companies that were surveyed by CDP received an A/A- last year for their efforts to combat climate change. This includes Thales.
Sophie Le Pennec, Thales Group Vice-President for Health, Safety & Environment
1The Intergovernmental Panel on Climate Change, (IPCC), is an intergovernmental body available to all member countries. It was established in 1988 and currently includes representatives from member states and scientists.
2The Task Force on Climate-Related Financial Disclosures, (TCFD), was created at the COP21 in 2015 by the Financial Stability Board. It was established by the G20 to promote disclosure of climate-related risks. It is comprised of 30 advisors, and its chair is Michael Bloomberg, a former mayor of New York City.
3CSR: Corporate Social Responsibilities.
4ESG: Environmental and Social Governance
5Multiple international organizations, including several United Nations agencies, have joined the Science Based Targets initiative. It is a rating organization that certifies and acknowledges companies that have established clear, ambitious emissions reduction goals to limit global warming to 1.5C or 2C.