The number of companies globally that have set net zero targets has risen by more than 40% over the past 16 months, but Net Zero Tracker has warned many commitments lack integrity. Only 37% of corporate net zero targets fully cover Scope 3 emissions. Further, just 13% of these targets specify quality conditions under which any offsets would be used, which Net Zero Tracker said signals an overreliance on low quality offset credits, rather than emissions reductions. Only 4% of company net zero commitments meet the UN Race to Zero’s criteria, the research added. John Lang, Project Lead of the Net Zero Tracker (ECIU), said: “A clear line in the sand on net zero has surfaced. Countless net zero targets are credibility light, but now we can say for certain that most of the world’s largest companies have shifted to the right side of the line on net zero intent. With credible net zero target-setting a proxy for forward-thinking, future-proofing companies, it begs a simple question: are the firms we’re investing in, working for and buying from on the right or wrong side of the line?” Over 1,000 of the world’s largest companies have net zero targets, with their aggregate annual revenue covered by net zero targets hitting US$27 trillion. The Net Zero Tracker will launch its seventh analysis of global net zero pledges at COP28, showcasing the extent to which the world’s 4,000 largest entities are aligned with net zero.
— Net Zero Tracker (@NetZeroTracker) November 6, 2023