A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

More Corporates Set “Credibility Light” Net Zero Targets

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. 

 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top