With environmental impact investing gaining momentum, many companies on the ASX are looking to reduce their environmental footprint. Here are 3 companies on the ASX that are taking action on climate change.
Qantas Airways Limited (ASX: QAN)
Recently Qantas pledged that the company aims to cut its net carbon emissions to zero by 2050. The announcement makes Qantas only the second airline group in the world to target zero emissions, superseding Qantas' previous pledge of cutting emissions to half their 2005 level by 2050.
According to Qantas, the ambitious goal for 2050 can be achieved by using planes with greater fuel efficiency and also operating carbon offset schemes, rather than dissuading people from flying. In addition, the airliner plans to cap net emission to around 12 million tonnes by 2020 and gradually reduce emissions over the next 30 years.
The company has also pledged to match every dollar spent by Qantas and Jetstar passengers who opt to offset their carbon emissions.
The aviation industry has come under heavy scrutiny from activists for its contribution to CO2 emissions. According to the Federal Government's Clean Energy Regulator, Qantas was Australia's 20th biggest emitter of carbon in 2018.
Redbubble Ltd (ASX: RBL)
Online retailer Redbubble has also pledged to combat climate change. The company's chief executive Barry Newstead signed the 'Not Business As Usual' pledge to donate $1 of every transaction made on a Friday in September to environmental organisation 350.org.
In the company's commitment to become carbon neutral it has also launched global carbon offset program for all the shipping in its supply chain. In addition, Redbubble's print on demand model is designed to limited waste by only making products a customer has bought.
Lendlease Group (ASX: LLC)
Lendlease has also committed to decarbonising construction as part of its global focus. The Australian construction company announced earlier this year that it had achieved carbon neutrality across all its Australian construction sites.
The company has achieved this milestone by purchasing offsets as part of their de-carbonisation strategy. Lendlease employees were asked to vote on offset projects, with overwhelming support for the Great Barrier Reef project. As a result, the company has offset 100% of emissions from construction activity across all building sites in Australia, by investing in a portfolio of certified carbon reduction projects supporting the reef and renewable energy projects.
Foolish takeaway
In my opinion, carbon offsetting will become a more pressing factor as ethical investing gains momentum. With consumer awareness growing around environmental implications of commerce, funds will be looking for companies that have acted on reducing their environmental footprint.
