7 ASX 200 shares with emission reduction strategies

These ASX 200 companies have emission reduction targets approved by the independent Science-Based Targets initiative (SBTi).

Trees and a road shapes a dollar sign of green, indicating the share price movement of ASX eco companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Australians, and many ASX 200 companies, are becoming increasingly conscious of the future of our carbon emissions. But the role the private sector has to play in Australia's approach to tackling climate change has been even more in focus since Prime Minister Scott Morrison's attendance at the virtual Leaders Summit on Climate last week.

The Prime Minister didn't add much to the climate change debate at the event. But, as the ABC reported, his comments that our efforts in this area would be largely "driven by our… private sector" help shine the spotlight on the future of carbon emissions that many climate-conscious ASX 200 companies are already addressing.

According to a report published by ASIC late last year, these 7 ASX 200 companies have emissions reduction targets that are approved by the independent Science-Based Targets initiative (SBTi) and are aligned with the Paris Agreement. 

7 ASX 200 carbon-conscious companies

Suncorp Group Ltd (ASX: SUN)

According to Suncorp, the company has concrete plans for sustainable growth.

This ASX 200 share says it is tracking and reducing its operational greenhouse gas (GHG) emissions footprint through its new carbon budget and science-based emissions reduction target.

It plans for a 51% absolute reduction of emissions by 2030.

Origin Energy Ltd (ASX: ORG)

Origin was the first energy company in the world to have its emissions reduction targets approved by the SBTi.

Its emissions reduction strategy is to reduce its direct greenhouse gas emissions by 50%, and emissions caused as a result of its value chain by 25%, by 2032.

Origin plans to be completely carbon neutral by 2050.

SkyCity Entertainment Group Limited (ASX: SKC)

SkyCity states that, as a member of the casino industry, it works hard to justify its place in society. Thus, it has a number of environmental and social measures in place to support positive practices.

One of these is its commitment to reducing its carbon emissions by 38% by 2030 and its GHG emissions by 73% by 2050.

SkyCity also says that, by 2023, 67% of what it spends on supplies such as food and drinks will come from companies with science-based emission-reduction targets in place. 

Dexus Property Group (ASX: DXS)

Around 25% of Australia's carbon and GHG gas emissions come from the construction, operation and maintenance of buildings. According to Dexus, it is now working on reducing those caused by its own buildings.

The ASX 200 real estate group has concrete plans to reduce its direct carbon and GHG emissions by 70% by 2030. It has also pledged to reduce its value chain's emissions by 25% by 2030.

Fletcher Building Limited (ASX: FBU)

Fletcher Building aims to be the Australian and New Zealand leader in sustainable building materials and construction.

To get there, it's pledged to reduce its carbon and GHG emissions by 30% by 2030. It's also committed to making sure that 67% of its suppliers will have science-based emission reduction targets by 2024.

QBE Insurance Group Ltd (ASX: QBE)

According to QBE, the company has already met some ambitious and modern goals when it comes to battling climate change.

It has already attained its goal of reducing its corporate air travel by 20% and removed all its direct investments in thermal coal. QBE has also reduced all its emissions by 30% – reaching its self-imposed deadline four years ahead of schedule. 

QBE is now working to reduce its energy use by 15% by the end of this year. It also plans to use 100% renewable electricity for all its operations by 2025.

Insurance Australia Group Ltd (ASX: IAG)

Insurance Australia got the ball rolling on climate change relatively early. The company published its first sustainability report in 2005, and is already carbon neutral.

It has set goals for emission reductions of 43% by 2025, 71% by 2030 and a 95% by 2050.

Other ASX 200 companies setting targets

The next time we take a look at which ASX 200 companies have set SBTi-approved emissions targets, we might need to write a longer list. At the time of ASIC's report, Woolworths Group Ltd (ASX: WOW), Westpac Banking Corp (ASX: WBC) and Telstra Corporation Ltd (ASX: TLS) had all committed to set emissions reduction targets in line with the SBTi and the Paris Agreement in the near future.

Currently, Telstra is proposing to be carbon neutral by the end of this year and plans to run its business with 100% renewable energy by 2025. It has also committed to reducing its total emissions by 50% by 2030. Westpac has committed to reducing its emissions by 34% by 2030. The bank is also currently working on creating emission reductions initiatives for its third-party suppliers.

Should you invest $1,000 in Endeavour Group Limited right now?

Before you buy Endeavour Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Endeavour Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

$10,000 invested in the ASX 200 5 years ago is now worth…

Guess how much $10,000 invested in the ASX 200 five years ago is worth today!

Read more »

Retired couple hugging and laughing.
Share Market News

Eyeing retirement: Do you really need $1 million?

AustralianSuper recently weighed in.

Read more »

Happy woman working on a laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant end to the trading week for investors this Friday.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Opinions

If I had a big cash pile like Warren Buffett, here's how I'd spend it in 2025

I'd put Buffett's billions to work straight away.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
52-Week Highs

5 ASX 200 shares hitting multi-year highs after strongly rebounding from tariff turmoil

These stocks have hit new price milestones amid a day in the green for the ASX 200.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

3 key takeaways from the 2025 Macquarie Conference

More than one hundred companies presented at the Macquarie Conference this year. Here’s what we learned.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »