As leaders from almost 200 nations prepare for the COP28 in Dubai, a new report from MSCI’s Net-Zero Tracker indicates a deceleration in the decarbonisation efforts of global listed companies. The study by the data and analytics provider suggests that while countries are gearing up to accelerate their efforts, the corporate sector is projected to fall short in achieving 1.5°C pathway. According to the report, listed companies in nine G20 nations are expected to decarbonise at a slower rate between 2022 and 2030 compared to the five years following the Paris Agreement. This trajectory indicates that these companies could surpass the carbon emissions limit to keep the global temperature rise below 1.5°C by April 2026 – three months earlier than previously estimated. Linda-Eling Lee, Founding Director and Head of the MSCI Sustainability Institute, said: “Despite progress, the world has not moved the needle enough to be on track to achieve 1.5°C. Progress from listed companies in the remainder of the decade is set to slow now that the low-hanging fruit has been picked. This makes it imperative to focus on policy innovation and technological advancements to help limit the cost of low-carbon energy.” The report also highlights that public companies are expected to emit 11% more direct greenhouse gas (GHG) emissions this year than in 2022, underscoring the need for a 43% reduction this decade to limit the temperature rise to 1.5°C. While some positive steps have been taken, including a 50% increase in companies setting net zero targets, urgent and collaborative action from both the public and private sectors is deemed essential to address the growing risks to society, the global economy, and the planet.
Listed companies could breach the emissions limit to keep warming below 1.5°C by April 2026 as corporate climate progress slows, the COP28 edition of the MSCI Net-Zero Tracker finds. Get all the takeaways: https://t.co/kARoxvo7Un pic.twitter.com/lzAhBomSt9
— MSCI (@MSCI_Inc) November 14, 2023