Carbon Neutral & Net Zero
Index
For more comprehensive coverage of global net zero targets, visit
Net Zero Tracker.
Notable News
Corporate Carbon Neutral Commitments
Corporate Net Zero Commitments
Government Carbon Neutral & Net Zero Commitments
Scope 3 Commitments and Actions (on "Scope 3" page)
Research
Corporate Decarbonization Performance and Progress
Decarbonization Pathways/Scenarios (on "Clean Energy" page)
Collaboration
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Notable News
CEF Members
FORD — Pledged to reach carbon neutrality across its European facilities, logistics, and suppliers, and zero emissions for all vehicle sales in Europe, by 2035. The company plans to introduce seven new EVs in Europe by 2024. Ford, SK On, and Koç Holding also signed a nonbinding memorandum of understanding for a new joint venture “to create one of the largest EV battery facilities in the European wider region.” (March 2022)
SCHNEIDER ELECTRIC — Has made the following decarbonization commitments in recent years:
- Become carbon neutral in its operations by 2025
- Achieve net-zero operational emissions (Scope 1 and 2) and reduce Scope 3 emissions by 35% (2017 baseline) by 2030
- Achieve carbon neutrality in its end-to-end value chain by 2040
- Achieve a net-zero supply chain by 2050
SIEMENS — Committed to net-zero operations by 2030 and a net-zero supply chain by 2050. (July 2021)
JOHNSON & JOHNSON — Committed to achieving carbon neutrality in operations by 2030, ahead of its Science-Based Target to lower absolute Scope 1 and Scope 2 emissions 60% (2016 baseline). (June 2021)
UPS — Committed to being carbon-neutral by 2050 (across Scopes 1-3), with 2 sets of interim targets (June 2021):
- By 2035: 50% reduction in CO2 per package delivered for global small-package operations, 30% sustainable aviation fuel, and 100% renewable electricity in facilities
- By 2025: 25% renewable electricity in facilities, 40% alternative fuel for ground operations
COMCAST — Committed to achieving carbon neutrality across its global operations (Scope 1 and 2) by 2035. (May 2021)
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GM — Committed to achieving carbon neutrality in global products and operations by 2040. (May 2021)
HP — Committed to achieving operational carbon neutrality by 2025. (April 2021)
HONEYWELL — Committed to becoming carbon neutral in its operations and facilities by 2035 through a combination of further investment in energy savings projects, conversion to renewable energy sources, completion of capital improvement projects at its sites and in its company vehicle fleet, and utilization of credible carbon credits. (April 2021)
3M committed to achieving carbon neutrality by 2050 with interim goals of reducing carbon emissions by 50% by 2030 and 80% by 2040. It expects to invest approximately $1 billion over the next 20 years to achieve these goals and others in the area of water efficiencies. (February 2021)
General Motors pledged to become carbon neutral by 2040 in its global products and operations and will work to phase out vehicles using auto-combustion engines by 2035. GM will invest $27 billion in electric and autonomous vehicles over the next five years and plans to offer 30 all-electric models globally by 2035. The company also aims to source 100% renewable energy for its U.S. sites by 2030 and globally by 2035. (January 2021)
JPMorgan Chase committed to reaching carbon neutrality in its operations beginning in 2020. (October 2020)
General Electric committed to achieving carbon neutrality across its operations by 2030. (October 2020)
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Apple announced plans to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030. The company will reduce emissions 75% percent by 2030 and develop innovative carbon removal solutions for the remaining 25% of its comprehensive footprint. Apple’s 10-year climate roadmap includes plans to advance low carbon product design, expand energy efficiency efforts, continue to source 100% renewable energy for its operations and work to move its entire supply chain to clean power, develop process and material innovations to tackle emissions, continue to invest in nature-based solutions to remove carbon from the atmosphere, and support smart policies around the world to strengthen environmental protections and the transition to clean energy. (July 2020)
Procter & Gamble announced a new commitment to achieve carbon neutral operations globally by 2030. The company plans to “go beyond its existing Science Based Target” by advancing a portfolio of natural climate solutions that will balance any remaining emissions over the next 10 years. (July 2020)
Ecolab announced plans to halve carbon emissions by 2030, achieve 100% renewable electricity by 2030, and help customers become carbon neutral by reducing GHG emissions by 4.5 million metric tons. (July 2020)
Ford Motor Company announced an ambition to achieve carbon neutrality by 2050. To achieve this goal, the company will focus initially on three areas — vehicle use, the supply base, and its facilities — that account for approximately 95% of its CO2 emissions. (June 2020)
Dow announced a commitment to achieve carbon neutrality by 2050. (June 2020)
UPS will match the carbon offsets of all packages shipped via its carbon neutral program during the month of June. (June 2020)
Delta Air Lines announced a 10-year, $1 billion commitment to “mitigate all emissions from its global business” beginning March 2020 to become the world’s first carbon neutral airline. (Feb 2020)
Bank of America has achieved its carbon neutrality goal a year ahead of schedule. (Jan 2020)
HP Inc. pledged to make every page printed with HP products forest positive, carbon neutral, and part of a circular economy. (2019)
Microsoft announced plans to double its internal carbon fee to $15 per metric ton on all carbon emissions. The company plans to use the funds from this higher internal carbon fee to maintain its carbon neutrality and help it “take a tech-first approach that will put sustainability at the core of every part of our business and technology to work for sustainable outcomes.” (2019)
Other Companies
CITIZENS FINANCIAL GROUP — Committed to achieving carbon neutrality by 2035, offsetting any remaining Scope 1 and 2 emissions beyond targets set in 2021 to reach carbon neutrality. It also announced a $50 billion Sustainable Finance Target, by 2030. This includes $5 billion in financing for green initiatives, such as renewable energy, clean technologies, and green buildings. (Sept 2023)
NESTLÉ — Abandoned pledges to make certain brands carbon neutral through the use of carbon offsets. “We are moving away from investing in carbon offsets for our brands to invest in programs and practices that help reduce GHG emissions in our own supply-chain and operations, where it makes the most difference to reach our net zero ambition,” a Nestlé spokesperson said. The company will pursue its 2050 net zero goal using “insetting” measures within its value chain, including helping farmers shift to regenerative agriculture, restoring wetlands, protecting habitats for pollinators, and planting hedgerows to prevent soil erosion. (July 2023)
TATA COMMUNICATIONS — Committed to becoming carbon neutral by 2030 and achieving net zero across its global operations by 2035. The company outlined its “3Cs Sustainability Strategy” focused on (i) Climate action within its operations, (ii) Customer GHG savings, and (iii) Circular economies in India regarding freshwater consumption and landfill waste. (May 2023)
IBERDROLA — Announced a new goal of achieving emissions neutrality in its generation plants, its electricity distribution activity, and its own consumption by 2030 and achieving net zero in all activities by 2040. It will also aim to achieve a net positive impact on species and ecosystems by 2030. (Nov 2022)
IBEROSTAR — Hotel group Iberostar pledged to become carbon neutral by 2030, 20 years ahead of the industry’s global target. Iberostar committed to reducing its Scope 1 and 2 absolute greenhouse gas emissions by 85% and Scope 3 emissions by 50% for 2030 from a 2019 baseline. It will make up for remaining emissions with nature-based solutions. Actions will include a 35% reduction in energy consumption and the purchase of up to 220 MW of renewable energy in the group’s destinations. (Nov 2022)
VENTAS — Real estate investment trust (specializing in healthcare properties), Ventas pledged to achieve carbon neutral operations by 2040, building on its current goal of reducing absolute carbon emissions by 30% by 2030 (2021 baseline). To reduce the building emissions that make up that operational carbon footprint, Ventas will (March 2022):
- Continue to invest in energy efficiency and develop net-zero carbon-aligned energy efficiency goals by property type by 2025.
- Commit to achieve 60% renewable energy procurement by 2030 and 100% by 2035.
- Commit to capital investment in deep decarbonization and electrification (e.g., electric HVAC systems, electric stoves, and water heaters).
TENCENT — China-based tech company Tencent announced plans to be carbon-neutral across its operations and supply chain by 2030. In support of the goal, Tencent joined the SBTi and committed to using green power for 100% of electricity it consumes by 2030. (Feb 2022)
List of Corporate Carbon Neutral Commitments, Non-CEF Members, 2021-2019 (PDF)
Corporate Net Zero Commitments
Return to Top Index
CEF Members
TIFFANY — Has set a 2030 greenhouse gas emission reduction target in alignment with SBTI’s Net-Zero standard. The company pledges to reduce Scope 1 and 2 emissions by 70%, and Scope 3 emissions by 40%, by 2030 from a 2019 baseline. By 2040, Tiffany will reduce all emissions by 90% and address the remaining 10% with expanded investments in nature-based solutions. To achieve these targets, Tiffany will move toward sourcing 100% of its precious metals from recycled sources, invest in sustainable transportation, construct and retrofit more sustainable buildings, and use 100% renewable electricity by 2030 and invest in efficiency initiatives. (Nov 2022)
SAMSUNG ELECTRONICS — Announced a commitment to achieve net zero carbon emissions (Scope 1 & Scope 2) across all global operations by 2050, and a pledge to achieve net zero carbon emissions (Scope 1 & Scope 2) for all operations in its consumer electronics businesses (its “Device eXperience Division”) by 2030. The company also joined RE100 and committed to “match electric power needs of all international markets where it operates, outside of Korea, with renewable energy within five years.” Samsung Electronics will invest over $5 billion by 2030 to advance its environmental initiatives, which include reducing process gases from semiconductor manufacturing, conserving water, expanding electronic waste collection, and reducing pollutants. Samsung plans to run all operations outside of Korea and its DX Division on renewable energy within 5 years. (Sept 2022)
HEWLETT PACKARD ENTERPRISE — Accelerated its commitment to net zero across its entire value chain (Scopes 1–3) by 2040, ten years ahead of its original commitment. The goal is backed by SBTi-approved 2030 targets to reduce Scope 1 and Scope 2 emissions by 70% and Scope 3 emissions by 42% (2020 baseline for both targets). By 2040 the company also plans to reduce its entire global footprint by 90%. HPE has introduced two new initiatives that will drive progress toward these targets and commitments at the leadership level (June 2022):
- In 2022, all company leaders at the VP level and higher will complete a mandatory climate training program, which the company hopes will empower them to create action/impact plans within their respective purviews.
- A new compensation metric for the company’s Executive Committee that ties a portion of variable pay to HPE’s management of carbon emissions across its value chain.
NEXTERA ENERGY — Announced RealZero™, a first-of-its-kind goal to eliminate the company’s Scope 1 and Scope 2 emissions by 2045—without the use of carbon offsets. The RealZero goal comes with 5-year interim milestones, the next of which is a 70% reduction of emissions (2005 adjusted baseline) by 2025. RealZero is predicated on its companion plan, the Zero Carbon Blueprint™, which lays out the transition of NextEra’s power generation to 100% carbon-free sources like solar, wind, nuclear, and green hydrogen, as well as advances in energy storage. The transition will not only cut the company’s operational emissions with no incremental cost increase to customers; NextGen anticipates that the company’s ambition in achieving RealZero will position it as the “preferred partner” for companies across industries looking to cut their carbon footprint. (June 2022)
NORTHROP GRUMMAN (CEF MEMBER) — Announced new environmental sustainability goals, including to (April 2022):
- Achieve net zero greenhouse gas emissions in operations by 2035.
- Source 50% of total electricity from renewable sources by 2030.
- Develop a “pioneering product stewardship program” with key customers focused on material efficiency, product design and life cycle assessment.
- Expand Technology for Conservation initiatives in proximity to U.S. locations by 2030.
DUKE ENERGY — Expanded its 2050 net-zero goals to include Scope 2 and certain Scope 3 emissions (Feb 2022):
- For its electric business, it committed to reaching net-zero GHG emissions from the power it purchases for resale, the electricity it purchases for its own use, and the procurement of fossil fuels used for generation
- For its natural gas business, it committed to reaching net-zero upstream methane and carbon emissions related to purchased gas, and net-zero downstream carbon emissions from customers’ consumption
EXXONMOBIL — Committed to reaching net-zero GHG emissions for its operated assets (Scopes 1 and 2) by 2050, with plans to develop “comprehensive roadmaps” that address about 90% of such emissions by year-end (and the remainder in 2023). (Jan 2022)
EXXONMOBIL — Committed to reaching net-zero GHG emissions for operated assets in the U.S. Permian Basin (in Texas and New Mexico) by 2030, with an interim goal of eliminating all routine flaring in Permian Basin operations by year-end 2022. (Dec 2021)
SCHNEIDER ELECTRIC — Has made the following decarbonization commitments in recent years:
- Become carbon neutral in its operations by 2025
- Achieve net-zero operational emissions (Scope 1 and 2) and reduce Scope 3 emissions by 35% (2017 baseline) by 2030
- Achieve carbon neutrality in its end-to-end value chain by 2040
- Achieve a net-zero supply chain by 2050
TRANE TECHNOLOGIES —
Committed to
reaching net zero by 2050 in line with the 1.5°C pathway.
(Nov 2021)
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MASTERCARD —
Accelerated its net-zero commitment from 2050 to
2040. (Nov 2021)
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JPMORGAN CHASE & CO. — Joined the
Net-Zero Banking Alliance, committing to reaching net-zero emissions across its lending and investment portfolios by 2050,
setting science-based 2030 targets,
and annually reporting
on its absolute emissions and emissions intensity. (Oct 2021)
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CHEVRON —
Unveiled a new
“aspiration” to achieve net-zero upstream Scope 1 and Scope 2 emissions by 2050. It also committed to
reducing its portfolio carbon intensity by at least 5% (Scopes 1-3), including the use of its products,
by 2028 (2016 baseline). (Oct 2021)
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MCDONALD’S —
Committed to
achieving net-zero emissions across its global operations by 2050,
with plans to
increase its existing 2030 science-based targets for Scopes 1-3 and set a long-term reduction target to reach net zero. It also
joined the UN Race to Zero
and the Business Ambition for 1.5°C campaign.
(Oct 2021)
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MARRIOTT INTERNATIONAL —
Committed to reaching
net-zero emissions across its value chain by 2050 and to
setting SBTi-aligned interim targets for Scopes 1-3. It also
joined the UN Race to Zero
and the Business Ambition for 1.5°C campaign.
(Sept 2021)
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86 NEW COMPANIES SIGN “THE CLIMATE PLEDGE” — Amazon announced that
over 86 companies worldwide joined
“The Climate Pledge,” thereby
committing to reach net-zero emissions by 2040.
New signatories include CEF members
CBRE, HP, and
Procter & Gamble.
The Pledge now has
200 signatories representing over $1.8 trillion in annual revenue, 21 countries, 26 industries, and over 7 million employees.
(Sept 2021)
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MORE 2 »
DELTA — Joined the
Race to Zero and
committed to setting a 2050 net-zero target and interim targets through the SBTi. It also
joined the steering committee of the
Clean Skies for Tomorrow Coalition, which is developing the sustainable aviation fuel (SAF) market, and sent a letter of intent to
become the first airline in the
LEAF Coalition, a public-private effort to mobilize $1 billion to end tropical deforestation by 2030. (Sept 2021)
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PROCTER & GAMBLE —
Committed to
achieving net-zero emissions across its operations and supply chain—from raw material to retailer—by 2040, and to removing and storing carbon from any residual emissions that can’t be eliminated.
Interim science-based targets, which have been submitted for SBTi approval, include reducing operations emissions by 50% and supply chain emissions by 40% by 2030. It also
joined the UN Race to Zero and the Business Ambition for 1.5°C campaign
and released its new
Climate Transition Action Plan. (Sept 2021)
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CISCO —
Committed to achieving
net-zero by 2040 across all scopes of emissions—including product use, operations, and supply chain—with an interim target of net-zero Scope 1 and 2 emissions by 2025. (Sept 2021)
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FIDELITY INTERNATIONAL — Committed to
reaching net zero across its operations by 2030.
(Aug 2021)
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GENERAL ELECTRIC —
Committed to
being a
net-zero company by 2050,
including operations and Scope 3 emissions from the use of its products. (July 2021)
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Schlumberger — Committed to achieving net zero by 2050 with minimal reliance on offsets.
It also announced interim goals of
achieving a 30% reduction in Scopes 1 and 2 by 2025 and a
50% reduction in Scopes 1 and 2; and a
30% reduction in Scope 3 by 2030.
(June 2021)
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»
HP — Committed to achieving net-zero emissions across its value chain by 2040 (April 2021)
Bank of America committed to achieving net-zero GHG emissions in its financing activities, operations, and supply chain before 2050. It announced interim steps towards the 2050 goal, including (February 2021):
- Helping clients accelerate their own transition to net-zero
- Establishing interim science-based targets for high-emitting portfolios
- Helping to create the Global GHG Accounting and Reporting Standard for the Financial Industry, and disclosing financed emissions no later than 2023
- New 2030 operational and supply chain goals to maintain carbon neutrality for its operations (achieved in 2019), reduce energy use by 55%, and ensure 70% of global vendors set GHG emissions reduction or renewable energy targets
HP — Committed to achieving net-zero emissions across its value chain by 2040.
(April 2021)
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»
VISA — Committed to achieving net-zero emissions by 2040
and setting Science-Based Targets in line with the
Business Ambition for 1.5 °C level. (April 2021)
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MCKINSEY & CO. — Committed to achieving net-zero climate impact as a firm by 2030 and announced it had joined the Business Ambition for 1.5 °C campaign. Its 2025 interim SBTi-approved targets include reducing absolute Scope 1 and 2 GHG emissions by 25% (2019 baseline) and Scope 3 emissions from business travel per employee by 30%. It will utilize nature-based solutions such as reforestation projects to neutralize its remaining footprint by 2030. (April 2021)
JETBLUE — Announced a set of short and medium-term ESG targets, including achieving net-zero carbon emissions by 2040. Interim goals include: (April 2021):
- Decreasing aircraft emissions 25% per available seat mile by 2030 from 2015 levels, excluding offsets
- Converting 10% of total jet fuel to be from blended sustainable aviation fuel by 2030
- Converting 40% of 3 main ground service equipment vehicle types to electric by 2025 and 50% by 2030
UNILEVER — Announced its Climate Transition Action Plan to achieve net-zero GHG emissions across its Scope 1, 2, and 3 by 2039; in a first for a company of its size, Unilever will put the plan before a shareholder vote in May. Interim steps include reducing Scope 1 and 2 emissions by 70% by 2025 and 100% by 2030 (2015 baseline), reducing the footprint of its products by half by 2030 (2010 baseline), and investing over $1 billion in consumer-relevant climate and nature programs. It plans to report annually on its progress in line with TCFD guidance. (March 2021)
NETFLIX — Announced its “Net Zero + Nature” plan, committing to achieving net-zero GHG emissions by the end of 2022 and every year thereafter. The company pledged to:
- Reduce Scope 1 and 2 emissions by 45% by 2030
- By the end of 2021, neutralize emissions it cannot reduce internally through investments in projects that protect existing, at-risk natural carbon sinks like tropical forests
- By the end of 2022, invest in regenerative projects that remove carbon from the atmosphere by restoring ecosystems that capture and store carbon, including grasslands, mangroves, and healthy soils.
MORE » (March, 2021)
BASF — Committed to reducing its global GHG emissions by 25% by 2030 (2018 baseline) and achieving net-zero CO2 emissions globally by 2050. It plans to invest up to $4.7 billion by 2030 to support its climate targets. (March 2021)
WELLS FARGO — Committed to achieving net-zero GHG emissions across its Scope 1, 2, and 3 by 2050. Interim goals include (March 2021):
- Disclosing its financed emissions measurement approach and providing more robust emissions data by 2022
- Setting interim emission reduction targets for select carbon-intensive portfolios—including oil and gas, and power—by 2022
- Establishing an Institute for Sustainable Finance to manage the deployment of an additional $500 billion to sustainable businesses and projects by 2030 and support science-based research and innovation in climate finance
- Integrating climate considerations into its Risk Management Framework
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Bank of America committed to achieving net-zero GHG emissions in its financing activities, operations, and supply chain before 2050. It announced interim steps towards the 2050 goal, including (February 2021):
- Helping clients accelerate their own transition to net-zero
- Establishing interim science-based targets for high-emitting portfolios
- Helping to create the Global GHG Accounting and Reporting Standard for the Financial Industry, and disclosing financed emissions no later than 2023
- New 2030 operational and supply chain goals to maintain carbon neutrality for its operations (achieved in 2019), reduce energy use by 55%, and ensure 70% of global vendors set GHG emissions reduction or renewable energy targets
Bloomberg committed to achieving net-zero carbon emissions by 2025. The announcement complements the company’s existing RE100 target to reach 100% renewable energy by 2025. (February 2021)
Mastercard pledged to become net-zero by 2050, and will focus initially on two priority areas: decarbonizing its own operations and leading on supplier sustainability. (January 2021)
PepsiCo announced new climate goals, including plans to double the reduction of absolute GHG emissions from 20% to at least 40% by 2030, source 100% renewable electricity for global operations by 2030, and achieve net-zero emissions across its entire franchise and third-party operations by 2040. (January 2021)
TD Bank Group committed to achieve net-zero carbon emissions for its operations and financing activities by 2050. To support its clients, TD Securities has established a Sustainable Finance and Corporate Transitions Group to provide clients with advisory services and important transition and sustainability-focused financing globally. The company will also end new project-specific financial services for activities that are directly related to the exploration, development, or production of oil and gas within the Arctic Circle. (November 2020)
Duke Energy set a target to reduce methane emissions in its natural gas business to net-zero by 2030. (October 2020)
Unilever announced new commitments to reach net-zero emissions for all of the company’s products by 2039 with an ambition to communicate the carbon footprint of every product sold, achieve a deforestation-free supply chain by 2023, and invest $1.1 billion in climate-friendly initiatives — such as reforestation, water preservation, and carbon sequestration — over the next decade. (June 2020)
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British media company Sky (parent company Comcast NBCUniversal) has pledged to achieve net-zero carbon emissions by 2030. (Feb 2020)
Delta Airlines announced a 10-year, $1 billion commitment to “mitigate all emissions from its global business” beginning March 2020. (Feb 2020)
Microsoft announced plans to be a carbon negative company by 2030. The company also plans to remove all of the carbon that it has emitted, since it was founded, by 2050. (2019)
Amazon has set a goal to make 50% of all shipments net zero by 2030, with a vision for 100% of Amazon shipments to be net zero carbon. (2019)
Amazon announced a set of new sustainability commitments, which include plans to become net zero carbon by 2040, achieve 100% renewable energy by 2030, invest $100 million to restore and protect forests, wetlands, and peatlands, and deploy 100,000 fully-electric delivery vehicles by 2030. The company also partnered with Global Optimism to create “The Climate Pledge,” which aims to boost corporate action to help achieve the goals set out by the Paris Agreement 10 years early. (2019)
NRG Energy has accelerated its science-based GHG emissions reduction goals to align with limiting global temperature rise to 1.5°C above pre-industrial levels. The company’s accelerated targets include plans to achieve its 50% reduction target by 2025 (five years ahead of schedule) and achieve net-zero emissions by 2050, surpassing its original goal of a 90% reduction. (2019)
Duke Energy announced a new goal to achieve net-zero carbon emissions from electric generation by 2050. The company also accelerated its near-term carbon goal, with plans to cut its CO2 emissions by at least 50% by 2030, compared to 2005 levels. (2019)
Other Companies
SOFIDEL — Paper manufacturer Sofidel committed to Net Zero by 2050 with an interim 2030 target of a reduction of 40% in Scope 1 and 2 emissions and a 24% reduction in Scope 3 emissions (2018 baseline), all approved by SBTi. The company’s decarbonization plan includes improved energy efficiency and sustainable forest management, and increasing renewable electricity, biofuels, and green hydrogen. (Jan 2024)
UBER FREIGHT — Announced company-wide sustainability commitments, including achieving net-zero climate emissions in global corporate operations by 2030, and aiming to shift 80% of its global brokerage shipments to clean transportation by 2040. This includes both the use of more sustainable shipping options such as rail and electric trucks, as well as network optimization tools. (Nov 2023)
NUCOR — Set net-zero science-based greenhouse gas targets for 2050 and established a new interim target for 2030, which includes Scopes 1, 2, and 3 emissions from the production of hot rolled steel. According to the company, this is more ambitious than its previous 2030 target (aligning with the Paris Agreement’s emission reduction goals for the steel sector by 2050), and makes Nucor the first steelmaker in the U.S. to set GHG reduction targets encompassing all three scopes. (Nov 2023)
DEUTSCHE BANK — Published new net-zero targets for three additional carbon-intensive sectors: coal mining, cement, and shipping. Targets include: a 49% reduction in Scope 3 financed emissions by 2030 and 97% reduction by 2050 for coal mining; a 29% reduction in Scope 1 and 2 emission intensity by 2030 and 98% reduction by 2050 for cement; and for shipping: Scope 1 scoring of 0% achieved by 2030 and 2050 based on the Poseidon Principles Portfolio Level Alignment Score. This expands the financed emissions in the Bank’s €107 billion ($113 billion) corporate loan portfolio covered by net-zero pathways to 55%. The bank also announced it would increase its reduction of total energy consumption from 20% to 30% by 2025 (2019 baseline), and have 80% of total vendor spend submit greenhouse gas emissions to CDP by 2025. (October 2023)
EXPEDIA GROUP — Committed to reach Net Zero across its operations by 2040 (2022 baseline). It also committed to reducing Scope 1 and 2 emissions by 75% by 2030; continuing to match 100% of electricity usage with renewable purchases through 2030; and engage with its value chain to ensure 75% of its suppliers (by emissions) have set science-based targets by 2028.
FUJITSU — Announced it aims to achieve net zero greenhouse gas emissions across its operations by 2030 and across the company’s value chain by 2040 (2020 baseline). The company also now aims to source 100% of electricity used in operations by 2030, 20 years ahead of its previous schedule. (Sept 2023)
LEGO GROUP — Pledged to achieve net-zero greenhouse gas emissions by 2050, extending its near-term target to reduce emissions by 37% by 2032 (2019 baseline). LEGO will work with the Science Based Target initiative (SBTi) to develop targets for Scopes 1, 2, and 3 emissions. The company also plans to triple its investment in sustainability over the next three years, spending $1.4 billion, including: buildings and factories that are carbon neutral in operations; increased on-site renewable energy; working with suppliers to reduce emissions; and adding responsible business travel policies, a shadow carbon pricing to key investments, and a carbon KPI that will be tied to executive remuneration from 2024. (Sept 2023)
MAGNA — Automotive supplier Magna committed to achieve net-zero by 2050, submitting its targets for validation by SBTi. The company also aims to use 100% renewable electricity, reduce Scope 1 and 2 emissions by 42% and reduce Scope 3 emissions by 25%, all by 2030. (Sept 2023)
BERRY GLOBAL GROUP — Plastic packaging manufacturer Berry Global Group committed to achieving net-zero emissions across its global operations and value chain by 2030. The company aims to reduce its total Scope 1, 2, and 3 emissions over 90% and “neutralize” its remaining emissions. Reduction strategies include moving toward circular plastics, engaging its value-chain, and shifting to renewable energy. It has also set a target of a 25% reduction of all scopes by 2025 (2019 baseline). (July 2023)
PRYSMIAN GROUP — Energy and telecom company Prysmian Group committed to a net-zero target of reducing all GHG emissions through its value chain by 2050, and cutting Scope 1 and 2 by 90% by 2035. The company will aim to cut Scope 3 emissions by 90% by 2050 and offset the remaining 10%. SBTi approved these targets. (July 2023)
INTUIT — Announced a new target to reach net-zero greenhouse gas (GHG) emissions across its value chain by FY2040, a target validated by the Science Based Targets initiative (SBTi) and in line with the Paris Agreement to limit global warming to 1.5°C. (June 2023)
L’OCCITANE GROUP — Released its Climate Strategy, outlining a roadmap of targets and initiatives, including achieving net zero value chain emissions by 2050. Other targets include sourcing 100% renewable electricity across its facilities by 2026, reducing Scope 1 emissions by 46% by 2031, and reducing absolute emissions across Scope 1 and 2 by 90% by 2050. Science Based Targets initiative (SBTi) validated all the goals. (May 2023)
ACER — Pledged to achieve net-zero carbon emissions by 2050, outlining nine strategies to achieve this, falling under operations, products and services, and value chain. Under operations, Acer aims to use 100% renewable electricity by 2035 and aims for a 50% emissions reduction by 2039 compared to 2019. (April 2023)
DANA — Automotive supplier Dana announced it has accelerated its climate commitments with a goal of achieving net-zero by 2040. It aims to reduce scope 1 and 2 greenhouse gas emissions by 75% (up from 50%) and scope 3 emissions by more than 25% by 2030. To do this, Dana will improve efficiency and reduce energy consumption, and add on-site renewable energy projects and renewable power purchase agreements (PPAs). This includes a renewable PPA with Enel Green Power signed last month that will supply 240,000 MWh/year starting in 2025, enough to offset 100% of the company’s emissions from purchased electricity in Europe. (March 2023)
CARRIER — HVAC and refrigeration company Carrier announced a new target to achieve net-zero greenhouse gas emissions across its value chain (Scopes 1, 2, and 3) by 2050, in line with the Science Based Targets initiative (SBTi) to limit warming to 1.5°C. Near and long-term goals have yet to be published but will be developed in accordance to the SBTi validation process. (Feb 2023)
UNICREDIT — Announced 2030 targets for the three most carbon intensive sectors within its portfolio, including Oil & Gas, Power Generation, and Automotive. These are in line with the bank’s goal of bringing its own emissions to net-zero by 2030 and its financed emissions to net-zero by 2050. Specific targets include: a 29% reduction in Scope 3 financed emissions in Oil & Gas as well as preventing all support for Arctic activities and new exploration and expansion of oil reserves (plus a full phase out of coal by 2028); a 47% reduction in Scope 1 weighted physical intensity in Power Generation; and a 41% reduction in Scope 3 “Tank to Wheel” intensity in Automotive. (Feb 2023)
T-MOBILE — Announced its commitment to achieve net-zero across its entire value chain by 2040. This will make T-Mobile the first U.S. wireless company to set a net-zero goal for all three emissions scopes that has been validated by SBTi. The company also signed onto The Climate Pledge. (Feb 2023)
LENOVO — Announced its goal to reach net zero across its value chain by 2050, validated and approved by SBTi. The company has committed to reduce absolute Scope 1 and 2 emissions by 50% by 2030 and Scope 3 emissions from the use of sold products by 35% (from a 2019 baseline). It also commits to reduce Scope 3 emissions from purchased goods and services 66.5% per million US$ gross profit and reduce Scope 3 emissions from upstream transportation and distribution 25% per tonne-km of transported product by 2030. (Jan 2023)
ALLSTATE — Announced it has committed to achieve net zero emissions for direct, indirect and value-chain greenhouse gas emissions by 2030. It will achieve this by reducing its office space and building emissions; purchasing renewable energy; reducing emissions of suppliers; and offsetting remaining real estate impacts. It will also set a target year for achieving a net zero investment portfolio by the end of 2025. (Jan 2023)
LOWE’S — Announced its goal to reach net-zero emissions across the company's Scope 1, 2 and 3 greenhouse gas emissions by 2050. It has also set targets to reduce Scope 1 and 2 emissions by 40%, and Scope 3 emissions by 22.5% below 2021 levels by 2030. To do so, it will increase operational efficiency and renewable energy; expand sustainable products and services offered; and partner with suppliers to reduce upstream emissions. (Dec 2022)
EASYJET — Launched a roadmap to achieve net-zero carbon emissions by 2050. easyJet’s ultimate aim is to become zero carbon using hydrogen-powered aircraft. In the shorter term, the company announced it will scrap its carbon offsetting scheme at the end of 2022, and focus on investments in more efficient aircraft, sustainable aviation fuels, and operating improvements. (Oct 2022)
LEVI STRAUSS & CO. —
Aims to
achieve net-zero GHG emissions by no later than 2050.
(Oct 2022)
UNDER ARMOUR — Is targeting net zero emissions by 2050. (Oct 2022)
ING — Has strengthened its decarbonization goals from a 2°C trajectory to a 1.5°C trajectory across nine high-emitting priority sectors, totaling more than $324 billion in activity. Eight of these sectors, other than shipping, are aligned with net-zero by 2050 along a 1.5°C pathway. The sectors were also given 2030 goals for the first time, en route to 2050 net zero targets (other than power generation, which has a net zero goal date of 2040). Five of the nine sectors are currently on track for achieving net zero by 2050. Residential real estate, which makes up 88% of activity, is within 5% of its pathway. (Sept 2022)
FORTESCUE METALS GROUP — Updated its decarbonization strategy, aiming to eliminate fossil fuel use and achieve real zero terrestrial emissions (Scope 1 and 2) across its iron ore operations by 2030. The Science Based Targets Initiative (SBTi) will verify and audit its emissions reduction. The company will invest $6.2 billion by 2030 in renewable energy generation, battery storage, and a greener mining fleet and locomotives. It expects to avoid 3 million metric tons of CO2 per year and save $818 million in operating costs per year from fossil fuel costs and carbon fees. (Sept 2022)
GAM — Investment company GAM committed to new Net Zero targets for 2030, including:
- A 50% reduction in financed carbon emissions (emissions/USD million invested) from a 2019 baseline;
- Having 75% of assets under management in materials sectors aligning with net zero by 2030;
- Engaging directly or collaboratively with 90% of the company’s financed emissions to ensure they are aligned or in the process of aligning with net zero.
GAM is also becoming a signatory to the Powering Past Coal Alliance Finance Principles, to accelerate the transition beyond coal. (Sept 2022)
CARLSBERG GROUP — Launched its new ESG program, “Together Towards ZERO and Beyond,” which updates its ESG targets and adds new focus areas. New suite of targets includes achieving (Aug 2022):
- Net-zero carbon emissions across its entire value chain by 2040.
- 100% of raw materials from regenerative agriculture and sustainably sourced by 2040.
- 100% of packaging recyclable, reusable, or renewable by 2030.
- 100% replenishment of water consumption at breweries in high-risk areas.
- 35% of its global beer portfolio to be low-alcohol or no-alcohol by 2030.
PROLOGIS — Logistics real estate company Prologis announced its commitment to achieve net zero emissions across its value chain (Scopes 1-3) by 2040. The commitment—which contains interim targets to achieve a) 1 gigawatt of solar generation capacity, supported by storage, by 2025; b) carbon-neutral construction by 2025; and c) net zero for operations by 2030—has been submitted to the Science Based Targets initiative (SBTi) for validation. (June 2022)
MAZDA — Commits to make all its factories worldwide carbon neutral by 2035. The company plans to achieve this through a combination of energy conservation, process & technology upgrades, renewable energy generation & procurement, and use of biofuels for on-site transportation. (June 2022)
VIRGIN MEDIA O2 (VMO2) — Committed to achieving net zero emissions across operations, products, and supply chain by 2040, subject to the standards and certification processes of the Science Based Target initiative (SBTi) and the Carbon Trust. Interim targets include (May 2022):
- 60% reduction of Scope 1 and Scope 2 emissions by 2025, and 90% reduction by 2030.
- 15% reduction of Scope 3 emissions by 2025, and 50% reduction by 2030.
ALLIANZ — Will reduce GHG emissions from its sites and activities in over 70 markets to net-zero by 2030, instead of 2050 as originally planned. Within its core business, Allianz will no longer invest in or underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and the Antarctic, or extra-heavy oil and ultra-deep-sea risks. In addition, as of January 1, 2025, Allianz will (May 2022):
- Require a robust "net-zero by 2050" commitment, across Scopes 1–3, from oil and gas companies as a pre-condition for company-level insurance coverage and investments.
- Cut off “insurance, facultative reinsurance, or funding” for companies with more than 10% of revenue coming from tar sands across their entire business profile.
ASTON MARTIN — Launched a “Racing.Green.” sustainability strategy that includes ambitions for net-zero manufacturing facilities by 2030, a 30% reduction in supply chain emissions by 2030 (2020 baseline), and net-zero emissions across its entire supply chain by 2039. (April 2022)
ALBERTSONS — Pledged to achieve net zero emissions in company operations by 2040. (April 2022)
INTEL — Committed to achieve net zero GHG emissions in its global operations (Scope 1 and 2) by 2040 and set several interim goals for 2030, including (April 2022):
- Achieve 100% renewable electricity use across its global operations.
- Invest approx. $300 million in energy conservation at its facilities to achieve 4 billion cumulative kilowatt-hours of energy savings.
- Build new factories and facilities to meet LEED® program standards.
- Work with suppliers to reduce supply chain (Scope 3) GHG emissions by 30%.
- Launch a cross-industry R&D initiative to identify greener chemicals with lower global warming potential and develop new abatement equipment.
DEL MONTE FOODS — Registered its commitment to achieve net-zero emissions by 2050 with the Science Based Targets initiative (SBTi). In keeping with SBTi requirements, Del Monte will focus on minimizing or eliminating its existing emissions rather than buying carbon credit offsets. The company will now focus on setting its interim 2030 targets for Scopes 1, 2, and 3 emissions reduction for SBTi validation. (April 2022)
RYANAIR — Announced its decarbonization strategy, Pathway to Net Zero. The planned carbon reductions break down as follows (March 2022):
- 34% through the increased use of sustainable aviation fuels (SAFs). Ryanair is partnering with the EU and fuel suppliers to accelerate availability of SAFs and has partnered with Trinity College in Dublin to establish the Ryanair Sustainable Aviation Research Centre.
- 32% through technological and operational improvements.
- 24% through offsetting and other economic measures.
- 10% through the introduction of better air traffic management.
COSTA COFFEE — The world’s second largest coffee chain (owned by parent company Coca Cola), Costa Coffee, has committed to become Net Zero by 2040. Toward that end, it has set an SBTi-approved target to halve emissions per serving of coffee by 2030. To address Scope 3 emissions, which comprise 95% of their total emissions, the company will closely engage with suppliers, partners, and NGOs such as the Rainforest Alliance. (March 2022)
HSBC — Announced new plans to help meet its goal of net zero by 2050, including to (March 2022):
- Phase down its financing of fossil fuels “to what is required to limit the global temperature rise to 1.5°C.”
- Review and update its “wider financing and investment policies critical to achieving net zero by 2050” this year.
- Publish a bank-wide Climate Transition Plan in 2023.
- Review clients’ climate transition plans and to formally assess whether to keep providing financing for clients “if no transition plans are produced” or “if after continued engagement” the plans aren’t compatible with HSBC’s net-zero target.
AIG — Committed to reaching net-zero GHG emissions across its global underwriting and investment portfolios by 2050 and announced related new commitments, including to (March 2022):
- No longer invest in or provide insurance for the construction of new coal-fired power plants, thermal coal mines, oil sands, or new Arctic energy exploration activities
- No longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines, or oil sands for clients that 1) derive 30% or more of their revenues “from these industries” or 2) generate over 30% of their energy production from coal
- Phase out the underwriting of all existing operation insurance risks and cease new investments in the aforementioned clients by January 1, 2030
- Use 100% renewable energy for its operations by 2030
- Use science-based emission-reduction targets and share such targets in upcoming months
DOMINION ENERGY — Expanded its 2050 net-zero commitment to emissions generated by its customers and suppliers, including electricity purchased for grid power, fuel for its power stations and gas distribution systems, and consumption by natural gas customers. The company will also support federal methane regulation, encourage enhanced supplier emission disclosures, show preference for “Responsibly Sourced Gas” and/or suppliers committed to net zero, increase access to renewable natural gas for customers, and “pursue clean-burning hydrogen.” (Feb 2022)
BP — Committed to reaching net zero across its operations, production, and sales by 2050 (up from its initial 2020 commitment) and announced new details in its plan to accelerate its ambitions, including (Feb 2022):
- Halving operational emissions by 2030
- Allocating over 40% of capital investments by 2025 toward its "transition growth businesses" (including renewables, EV charging, hydrogen, and bioenergy) and around 50% by 2030
- Generating $9 billion-$10 billion in earnings from transition growth businesses by 2030
- Reaching net zero lifecycle emissions from the energy products it sells by 2050
- Increasing its EV charging points to over 100,000 by 2030 and increasing energy sold across its EV charging networks 100-fold by 2030 (2019 baseline)
NEW LOOK — The British fashion retailer committed to becoming “climate positive” by 2040. (Feb 2022)
CARLYLE — Committed to reaching net-zero GHG emissions across its investments by 2050. Interim targets include having 75% of its majority-owned private equity, power, and energy portfolio companies’ Scope 1 and Scope 2 emissions covered by Paris-aligned climate goals by 2025, and having all such companies set Paris-aligned climate goals within two years of ownership after 2025. (Feb 2022)
TRUIST FINANCIAL CORPORATION — Committed to achieving net zero GHG emissions by 2050. It will also work to measure and report on “enhanced” Scope 3 emissions by calculating a financed-emissions baseline, setting interim targets, and investing in low-carbon technologies. (Jan 2022)
MAERSK — Accelerated its commitment to reach net-zero GHG emissions across its entire business (Scopes 1-3) and deliver “100% green solutions to customers” by 10 years, to 2040. (Jan 2022)
List of Corporate Net Zero Commitments, Non-CEF Members, 2021-2019 (PDF)
Government Carbon Neutral & Net Zero Commitments
Return to Top Index
GAIL, India’s state-owned natural gas utility, has set a target to achieve net zero carbon emissions from its operations by 2040. Specifically it intends to achieve a 100% reduction in Scope 1 and Scope 2 emissions and a 35% reduction in Scope 3 emissions. GAIL aims to produce green hydrogen and install 3 GW of renewable energy capacity by 2030. (Aug 2022)
MORE »
Vietnam — Committed to reaching net zero by 2050. (Nov 2021)
MORE »
India — Committed to reaching net zero by 2070. It also committed to reducing the carbon intensity
of its economy by 25%.
(Nov 2021)
MORE » MORE 2 »
Australia committed to achieving net-zero carbon emissions by 2050. Bloomberg reports that the target will not be enshrined into law and the country will keep “relying on fossil fuels and projects designed to offset planet-warming pollution.” (Nov 2021)
MORE»
Israel committed to reducing carbon emissions to net-zero by 2050. (Nov 2021)
MORE »
Bahrain committed to reaching net-zero carbon emissions by 2060. (Nov 2021)
MORE »
The United Arab Emirates committed to reaching net-zero by 2050 and plans to invest $163 billion in renewable energy. (Nov 2021)
MORE »
Saudi Arabia committed to net-zero GHG emissions by 2060 and reducing 278 million metric tons of emissions annually by 2030. Axios notes that the commitments “apply only to Saudi Arabia's internal emissions, which are roughly 2% of global CO2 emissions.” (Nov 2021)
MORE »
Bank of England —
England’s central bank committed to achieving net-zero emissions for its physical operations by 2050 at the latest. (June 2021)
MORE »
The UK’s Environment Agency unveiled its
roadmap to reaching net-zero by 2030, including pledging to use low-carbon concrete for critical infrastructure projects, switching to only electric cars by 2023, and reducing the overall number of vehicles. (May 2021)
Spain announced a goal of achieving a circular and carbon-neutral economy by 2050. (May 2021)
3 of the U.K.’s nuclear, wind, and solar industry groups—Nuclear Industry Association, RenewableUK, and Solar Energy UK—called on lawmakers to accelerate renewable energy capacity and adopt a 2035 net-zero grid target. (May 2021)
Germany announced accelerated emissions reduction goals, including reducing carbon emissions 65% (previously 55%) by 2030 and 88% by 2040, and achieving net-zero by 2045 (previously 2050). (May 2021)
The U.S. and China issued a joint statement to work together to hold global average temperature increase to well below 2 °C and pursue efforts to limit it to 1.5 °C. Both countries intend to develop long-term net-zero strategies before COP26 and maximize international investment to support a green, low-carbon transition in developing economies. (April 2021)
New Government Climate Goals
(April 2021)
- U.K. — Committed to reducing emissions 78% by 2035 (1990 baseline), building on its current pledge of 68% by 2030. The new pledge will incorporate the U.K.’s share of international aviation and shipping emissions for the first time MORE »
- E.U. — Committed to reducing emissions by at least 55% by 2030 (1990 baseline) to achieve climate neutrality by 2050 MORE »
- JAPAN — Raised its 2030 emissions reduction goal from 26% to 46% (2013 baseline) and pledged to achieve net-zero emissions by 2050 MORE »
- CANADA — Increased its 2030 emissions reduction goal from 40% to 45% (2005 baseline) and pledged to achieve net-zero emissions by 2050 MORE »
- SOUTH KOREA — Pledged to end all new public financing for overseas coal projects and plans to submit new emissions targets later this year MORE »
- BRAZIL — Pledged to end illegal deforestation by 2030 and achieve carbon neutrality by 2050 MORE »
- CHINA — Announced it would attempt to "strictly limit increasing coal consumption” over the next 5 years MORE »
India is considering a net-zero pledge, with a possible 2047 target date to mark the centenary of India’s independence from British rule. (March 2021)
Notable climate-related U.S. policy developments
(March 2021):
- House Democrats proposed The CLEAN Future Act to achieve net-zero GHG by 2050, including requiring utilities to supply 80% of clean power from zero-carbon sources by 2030 and 100% by 2035. MORE »
- Chair of the Energy Committee, Senator Joe Manchin, introduced a bill providing $8 billion in new tax credits to spur domestic manufacturing of climate-friendly technologies. MORE »
- House Democrats put forward a set of bills to reform federal oil and gas leasing regulations, including raising royalty rates and toughening cleanup requirements. MORE »
- Energy Secretary Jennifer Granholm signaled reactivation of a $40 billion loan program to boost clean energy transition. MORE »
- Biden administration backed Trump’s tariffs on imported solar panels. MORE »
- Climate Czar John Kerry urged the oil and gas industry to accelerate diversification and adoption of low-carbon technologies. MORE »
- American Petroleum Institute is considering endorsing a price on carbon emissions. MORE »
- Wall Street veteran Mark Gallogly joined John Kerry’s international climate team to focus on business community outreach. MORE »
- Additional climate experts joined the Biden Administration, including:
- Catherine Wolfram, Deputy Assistant Secretary for Climate and Energy Economics, Treasury Department
- Noah Kaufman, Senior Economist, White House Council of Economic Advisers.
- Jane Flegal, Senior Director for Industrial Emissions, White House Council on Environmental Quality
- Jigar Shah, head of loan programs, Department of Energy. MORE »
U.K. Chancellor Rishi Sunak announced a $90 billion plan to support the region’s pandemic recovery and drive green growth, which includes (March 2021):
- Creating the U.K.’s first-ever Infrastructure Bank to finance green infrastructure and emerging low-carbon technologies like hydrogen and carbon capture
- Establishing green savings bonds linked to the country’s sovereign green bond framework to allow citizens to support green projects
- Changing the Bank of England’s remit to include the responsibility to support the government’s net-zero carbon ambition
- Maintaining Britain's carbon tax at $25.12 per ton and establishing a new working group to advance London as a global trading hub for voluntary carbon offsets.
China’s State Council released a guideline for all levels of government to accelerate the development of a green and low-carbon circular economy to peak carbon emissions around 2030 and achieve carbon neutrality by 2060. (March 2021)
The
Biden-Harris Administration formed the
Climate Innovation Working Group to
accelerate R&D investments in “affordable, game-changing technologies” to help America become more
climate-resilient
and
achieve net-zero by 2050. Key planks of agenda include: (February 2021)
- Carbon-neutral construction materials
- Cheaper energy storage systems (one-tenth the cost of today’s alternatives)
- Zero-carbon power plants
- Low-cost zero-carbon vehicles and transit systems
- New, sustainable fuels and efficiencies for aircraft and ships
- Air conditioning and refrigeration that does not use planet-warming gases
- Carbon-free heat and industrial processes for heavy industries like cement and chemicals
- Affordable carbon-free hydrogen
- Advanced soil management and other farming practices that remove CO2
- Ways to retrofit existing industrial and power plants with CO2 capture
Members of the European Parliament (MEPs) adopted the European Commission’s Circular Economy Action Plan to achieve a carbon-neutral, sustainable, toxic-free, and fully circular economy by 2050 at the latest. MEPs requested the Commission to submit new legislation in 2021 that broadens the scope of targets for materials use and consumption, covering the entire lifecycle of each product placed on the E.U. market no later than 2030. (February 2021)
Japan’s Central Government announced plans to ban the sale of new gasoline-powered vehicles by 2035, as part of the country's goal to become carbon neutral by 2050. In December,
Tokyo Governor Yuriko Koike
announced a similar ban
starting in 2030. (January 2021)
Canadian Prime Minister Justin Trudeau
introduced a bill that details the country’s plans to reach net zero emissions by 2050. (November 2020)
UK Prime Minister Boris Johnson unveiled the details behind his £12 billion, 10-point plan to reach net-zero emissions. The plan includes a ban on the sale of petrol and diesel vehicles by 2030, a previously announced pledge to quadruple offshore wind power by 2030, a £525 million investment in new nuclear power based on “the next generation of small and advanced reactors,” a £1 billion investment to insulate homes and public buildings, a £200 million investment in carbon capture initiatives, and more. (November 2020)
The UK government launched a Green Jobs Taskforce, which aims to “support the creation of 2 million skilled jobs to build back greener and reach net-zero emissions by 2050.” (November 2020)
Japan set a target to achieve net-zero emissions by 2050. (November 2020)
China will aim to achieve peak CO2 emissions before 2030 and carbon neutrality by 2060. (September 2020)
House Democrats released a new climate plan that calls for net-zero U.S. emissions by 2050, net-zero power-sector emissions by 2040, a zero-emissions requirement for 100% of light-duty vehicle sales by 2035, and more. (July 2020)
New York Governor Andrew Cuomo unveiled New York’s Green New Deal, which includes plans to achieve 100% clean power by 2040, invest $1.5 billion in 20 large-scale renewable energy projects across upstate New York, develop an implementation plan to make New York carbon neutral, and more. (2019)
The New York State Assembly passed a bill that establishes targets for the state to achieve 100% carbon-free electricity by 2040 and economy-wide net-zero carbon emissions by 2050. (2019)
Britain set a target to achieve
net-zero GHG emissions by 2050, becoming the
first G7 nation to do so. (2019)
The European Union became the first major economic bloc to propose reaching net zero carbon by 2050, with interim intentions to reduce emissions 50% by 2030. (2019)
New Zealand lawmakers adopted a new measure to achieve net zero carbon emissions by 2050. (2019)
The European Commission unveiled the Sustainable Europe Investment Plan, a 10-year plan aimed at mobilizing around $1.1 trillion to help Europe achieve net zero GHG emissions by 2050. (Jan 2020)
Research
Corporate Decarbonization Performance and Progress
Return to Top Index
The MSCI Net-Zero Tracker (MSCI Sustainability Institute) — Assesses the climate change progress of companies within the MSCI All Country World Investable Market Index. Key findings in this latest update (April 2024):
- Listed companies are on track to use up their share of the global carbon budget for limiting increases to 1.5°C by July 2026.
- Listed companies will produce 11.8 gigatons of Scope 1 emissions in 2024, about as much as in 2023.
- Nearly 38% of listed companies have set net-zero targets, up from 37%, while 52% have disclosed an emissions-reduction commitment.
- Nearly 60% of listed companies disclosed Scope 1 and/or Scope 2 emissions, and nearly 42% reported at least some of their Scope 3 emissions, up 16% and 17% respectively over the past two years.
- The decarbonization trajectories of listed companies place them on a path to warm the planet by 3°C this century.
Corporate Climate Responsibility Monitor 2024 (New Climate Institute and Carbon Market Watch) — Assesses the 2030 net-zero climate targets of 51 companies with combined revenues of $6.1 trillion in 2022 and responsible for 16% of global GHG emissions. It finds that while “modest progress” has been made over the past two years, the companies’ median absolute emission reduction commitment is just 30-33% of the full value chain emissions between 2019 and 2030. This falls short of the 43% decrease in GHG emissions needed for a 1.5°C pathway (according to the IPCC). The report does find that 29 companies have committed to emission reduction targets alongside their net-zero pledges and 18 of those 29 have committed to deep decarbonization along their value chain, aiming for close to a 90% reduction. The report also assesses the impact of using carbon offsetting for Scope 3 emissions (for 14 companies) and finds that this could enable companies to plateau or even increase their Scope 3 emissions, making their Scope 3 targets “meaningless,” and thus reducing their 2030 commitments to cover only Scope 1 and 2 emissions. (April 2024)
Net-Zero Industry Tracker 2023 Edition (World Economic Forum (WEF)) — Provides a detailed analysis of progress towards net-zero emissions for eight industries (steel, cement, aluminum, ammonia, oil and gas, aviation, shipping, and trucking), which together emit 40% of global greenhouse gases. The report finds that these sectors are not aligned with reaching net-zero by 2050, with absolute emissions having grown 8% on average over the past three years. Transitioning these sectors will require a collective investment of approximately $13.5 trillion, with a blend of electrification (clean power), clean hydrogen, and carbon capture utilization and storage (CCUS) forming the basis of decarbonization across these sectors. However, to succeed, this investment must be complemented with policies and incentives that can help the industries make the shift. (Dec 2023)
Only 18% of companies are currently on track to reach net zero emissions in their operations by 2050, according to research on 2,000 companies from Accenture. 38% say they cannot make further investments in decarbonization in the current economic environment. The number of companies setting net zero targets has risen from 34% to 37% over the past year. However, 49.6% of companies that disclose emissions data have reported increasing emissions since 2016. 32.5% are cutting emissions, but not on track to reach net-zero by 2050. (Nov 2023)
Net Zero Readiness Report 2023 (KPMG) — Examines steps taken by 24 countries as well as key economic sectors to reduce greenhouse gas (GHG) emissions. The report, based on interviews with KPMG experts, provides national profiles including total emissions, emissions intensity, and how different economic sectors contributed to national GHG emissions (between 2005 and 2022). Key insights include (Nov 2023):
- Several of the world’s largest emitting countries have increased their net zero ambitions.
- Production of low carbon energy is growing rapidly.
- Electric vehicle sales show how rapidly some sectors can decarbonize.
- Impacts of low carbon power projects on local environments are causing “green on green” conflict and local opposition.
- Net Zero backlashes occur when people fear costs and bans rather than see the opportunities.
More than 1,000 companies out of the Forbes Global 2000 list of the world’s largest companies have now set net zero targets. This is a 40% increase over the past 16 months (from 702 to 1,003), covering $27 trillion of aggregate annual revenue, 88% of global GHG emissions, and 92% of the global economy. (Nov 2023)
NET-ZERO ASSET OWNER ALLIANCE (NZAOA) — Grew its membership to 86 firms (up from 76 in 2022), which collectively manage $9.5 trillion in assets (up from $9.4 trillion), according to its latest progress report. 69 of these firms (managing $8.4 trillion) have set intermediate targets, up from 44 in 2022. From 2021 to 2022, members’ combined absolute financed emissions fell from 221.2 million tons of CO2 equivalent to 213.4 million tons of CO2e. $380 billion has been dedicated to investments in climate solutions in December 2022 by the Alliance’s members, up from $253 billion in December 2021. (October 2023)
Analysis: How some of the world’s largest companies rely on carbon offsets to ‘reach net-zero’ (CarbonBrief) — Finds that two-thirds of the world’s 50 biggest companies with net-zero targets are using carbon offsets to help meet their climate goals. These 34 companies have used credits to offset 38 million metric tons of CO2 during 2020-2022, equivalent to the annual emissions of Ethiopia and Kenya combined. Fossil-fuel companies used half of these offsets and car manufacturers used 28% (78% combined). And half of the offsets were from REDD+ forest protection projects, while only 8% were from projects that removed CO2 from the atmosphere (primarily tree-planting). 93% of these offsets were based in developing countries, with Indonesia (9.2 million), China (6 million), and Colombia (5.8 million) providing the most. (Oct 2023)
Net-Zero commitments have more than tripled in the last three years in the Russell 1000, growing from 110 in 2020 to 357 in 2022, according to a new report by JUST Capital. Those verified 1.5-Degree by SBTi grew as well, from 65 in 2020 to 123 in 2022. (Sept 2023)
Only 4% of banks disclose a net-zero target covering all financing activities, which include lending, capital markets activity, investment banking, asset management, and advisory activities, according to analysis from the Transition Pathway Initiative’s (TPI) Global Climate Transition Centre. 77% have disclosed a commitment to net-zero financed emissions by 2050 (up from 69% in 2022), but only half of these banks detail which on- and off-balance sheet activities are included in these commitments. (Sept 2023)
The Road to Net Zero Starts with Your Core Business (CDP and Bain & Company) — 64% of Scope 1 and 2 emissions and 69% of Scope 3 emissions by UK companies are not covered by a decarbonization target. Among UK companies that are setting targets, 21% are currently expected to miss their 2030 targets for Scope 1 and 2 emissions, and 31% are expected to miss Scope 3 targets. However, UK businesses are decarbonizing faster than companies in Europe and North America. On average, UK companies have cut emissions by 8% since they began reporting through CDP, compared with just 4% for both their North American and European counterparts. (Aug 2023)
Finance for Zero (Columbia Center on Sustainable Investment) — Analyzes the extent to which the financial system is aligned with a 1.5°C global warming pathway. While the ratio of clean energy to fossil fuels needs to reach 4 to 1 by 2030, in an assessment of 1,142 banks, the ratio was between 0.8 and 1 at the end of 2021. In the absence of government leadership, many bottom-up methodologies and initiatives have proliferated, which, while showing the sector’s engagement, meaningful progress has been limited. The report urges financial institutions to be clear in their commitments, limitations, and how they measure success. It also proposes a series of actions to contribute to climate goals under current policy conditions, including ceasing anti-climate lobbying, and shifting finance to support a rapid and just transition. And the report recognizes the importance of more robust accountability and oversight mechanisms for financial institutions and their alliances regarding their climate-related strategies in properly incentivizing the difficult changes needed in business plans and models. (June 2023)
Net Zero Stocktake 2023 (Net Zero Tracker) — Of the world’s largest 2,000 listed companies, 929 have set net-zero targets, more than 200 of which were set in the past 12 months. This aggregates to annual revenue of $26.4 trillion, up from $3.8 trillion in December 2020. However, only 4% of the net zero commitments meet the UN Race to Zero Campaign’s revised “Starting Line criteria;” only 37% cover Scope 3 emissions; and 26% of companies report planning to use CDR (CO2 removal) in some way. The report also covers national net zero targets, which now collectively represent 88% of global GHG emissions, 92% of global GDP, and 89% of global population, up from 61%, 68%, and 52% respectively from December 2020. (June 2023)
The MSCI Net-Zero Tracker (MSCI) — Reveals that the 9,300 public companies listed on the MSCI All Country World Investable Market Index are on track to depleting their share of the global emissions budget for limiting temperature rise to 1.5°C by December 2026, two months earlier than previously estimated by MSCI. At the current rate of emissions (10.9 gigatons of Scope 1 greenhouse gas emissions in 2022), listed companies are on track to make the world 2.9°C warmer by 2100. Only 36% of these have set a decarbonization target and 46% have declared a net-zero target. Just 41 companies have set a net-zero target approved by SBTi. (Nov 2022)
Accelerating global companies toward net zero by 2050 (Accenture) — While 34% of the world’s 2000 largest companies are now committed to net-zero, 93% will fail to achieve their goals if they don’t at least double the pace of emissions reduction by 2030. The report finds that setting net-zero targets, especially supported by multiple intermediate targets and level-specific goals (such as renewable energy targets) leads to faster emissions reductions. (Nov 2022)
An Investor’s Guide to Net Zero by 2050 (BNY Mellon Investment Management / Fathom Consulting) — Finds that $100 trillion in capital investment is needed to achieve net-zero global emissions by 2050. This is about a fifth of total anticipated investments over that period. Much of these investments will add to the world’s existing capital stock (supporting future economic growth) or replace existing assets as they depreciate. Thus this investment will mostly take the place of otherwise planned investment, according to the report. However, this $100 trillion includes about $20 trillion of stranded assets that may need to be scrapped or retrofitted before the end of their useful life. About half of all corporate investment required for net-zero will need to be spent by firms in the energy and utilities sector. (Oct 2022)
2022 Climate and Energy Benchmark on the Transport Sector (World Benchmarking Alliance) — Assesses the action toward decarbonization of 90 global transport companies and finds that progress is limited. Some key findings (Oct 2022):
- 51% of the companies have set net-zero goals, with only 9% having set more than one intermediate target;
- Currently more than 90% of transport energy comes from crude oil-derived products, but only 7% of these companies have committed to phasing out fossil fuels;
- 85% of companies have fleets that are incompatible with a low-carbon future but the majority fail to disclose any plans for changing this;
- An average of 0.3% of total transport related revenues are invested in R&D into low-carbon technologies and fuels;
- Only 3 of these companies showed significant support for low-carbon policy;
- While these companies employ 9.6 million people globally, only 43% have a publicly available statement committing to respect the health and safety of their workers.
Everybody’s Business: The Net Zero Blind Spot (Net Zero Tracker) —69% of publicly listed companies have a publicly disclosed net zero target, compared to just 32% of privately owned companies, according to this comparison of climate plans of the world’s 100 largest private and 100 largest public firms. Of those companies 72% of public (50 companies), and 13% of private companies (4) have published a plan on how to achieve net zero. 55% of public companies with goals have interim targets while only 34% of private companies do. Private companies are also less likely to include Scope 3 emissions and provide clarity on their planned use of offsets. (Oct 2022)
Net-Zero Owner Alliance — The UN-convened alliance published its second Progress Report, showing significant membership growth matched by credible intermediate decarbonization targets. The alliance now totals 74 institutional investors, six times its membership at formation, and represents over $10.6 trillion in assets under management. 44 members, representing $7.1 trillion, are setting 2025 targets in line with the Paris Agreement. In an additional announcement, the alliance also called on companies in sectors that included oil and gas, utilities, transportation, cement, steel, agriculture, forestry and construction to disseminate key climate metrics; transparently disclose forward-looking decarbonization transition plans; and provide current data as well as 5- and 10- year targets. (Sept 2022)
Institutional decarbonisation scenarios evaluated against the Paris Agreement 1.5°C goal (Nature Communications) — Found that of six institutional decarbonization scenarios produced by oil companies (including BP, Royal Dutch Shell, and Equinor) and the International Energy Agency (IEA), five were incompatible with the Paris Agreement, as they failed to limit warming “well below 2 degrees Celsius” and none successfully kept warming below 1.5°C. Only the IEA’s Net Zero 2050 scenario, which had a peak warming of 1.65°C, came close. All other scenarios brought warming beyond 1.73°C. The research was led by the NGO, Climate Analytics. (Aug 2022)
Net Zero: Syncing ambition with outcomes across the consumer packaged goods value chain (AlixPartners) — Examines carbon reduction commitments made by 235 of the largest food and beverage companies in North America, Europe the Middle East and Africa, including suppliers, manufacturers, and food retailers. Research also reviewed financial indicators and included executive surveys with industry leaders. The key finding is that the food and beverage industry must make substantial changes to meet a 1.5C scenario, and that collaboration will be required “along every step of the value chain.” (June 2022)
Net Zero Stocktake 2022 (Net Zero Tracker (NZT)) — Provides a snapshot of the current global state of net-zero pledges and targets by companies and governments, as well as an analysis of trends and, critically, target credibility. The study is based on 4,000 entities tracked by NZT, 1,180 of which have some form of 2050 net-zero target. While there has been a dramatic recent increase in the number of net-zero targets set across all actor categories—now collectively covering 91% of global GDP and 65% of GHG emissions—the report’s authors note that “an alarming lack of credibility still pervades the entire landscape.” In making that determination, NZT looked for the presence of clear science-based interim goals, whether all emitted GHGs are covered, clear language about the extent and quality of offsets (if used), coverage of companies’ Scope 3 emissions, and robustness of reporting. Key findings include (June 2022):
- Less than 20% of net zero targets set by governments (all types combined) and only a third set by companies meet minimum procedural standards as defined by the UN Framework Convention of Climate Change’s (UNFCC) Race to Zero entry criteria.
- More than 75% of governments and 60% of companies have not stated whether they intend to use external offset credits and/or carbon dioxide removal (CDR)—neither of which are verifiably effective at required scale or timeline yet—to meet their net zero targets. Nearly 40% of companies have stated they do intend to use external offsets credits to achieve net zero.
- Only around half of companies with 2050 net-zero commitments have set near-term targets, weakening alignment with the scientific consensus that global emissions must be roughly halved by 2030 if global temperature rise is to be held to 1.5°C.
- Only 38% of companies account for Scope 3 emissions, which in some cases may account for the majority of a company’s overall carbon footprint. Of the companies that do report on Scope 3, many do not subject their accounting to third-party verification.
The Net Zero Asset Managers initiative (NZAM) — An alliance of asset managers committed to achieving net-zero emissions across their entire portfolios by 2050. Since November, NZAM has added 53 new signatories for a total of 273, representing more than USD 61.3 trillion in assets under management. In that same time frame 43 signatories—including CEF member BlackRock—have disclosed the initial percentage of their portfolios that will be managed in alignment with net zero. The total number of signatories to have done so stands at 84, with 39% ($16 trillion) of their combined assets under management committed. (June 2022)
“Net Zero Company Benchmark” assessments (Climate Action 100+) — Initiative led by 700 investors representing $68 trillion in assets under management finds that 166 companies are collectively responsible for up to 80% of global corporate GHG emissions, and need to quickly ramp up their actions to limit global temperature rise to 1.5°C. Of those companies (April 2022):
- 42% have comprehensive net-zero-by-2050 commitments that cover all material GHG emissions, including Scope 3.
- 17% have set medium-term targets aligned with the International Energy Agency’s (IEA) 1.5°C scenario and covering all material emissions.
- 17% have robust, quantified decarbonization strategies in place to reduce their GHG emissions.
- 5% explicitly commit to align their capital expenditure plans with their long-term GHG reduction targets.
- No company has demonstrated that its financial statements are drawn up using assumptions consistent with net zero by 2050.
Some findings indicate that many companies are positioned to step up their efforts if/when they are compelled to do so. Of the companies assessed (April 2022):
- 90% have some level of board oversight for climate-related business matters.
89% are aligned with Task Force on Climate-related Financial Disclosure (TCFD) recommendations, either by supporting the TCFD principles or by employing climate-scenario planning.
The NewClimate Institute and Carbon Market Watch published a new report analyzing the “transparency and integrity” of net-zero pledges made by 25 global companies that together accounted for about 5% of global GHG emissions in 2020. Twelve companies have no specific emission-reduction commitments for their net-zero target year, and the other 13 have only committed to reducing their full value chain emissions by 40% on average (2019 baseline). Maersk’s net-zero pledge is the only one ranked as having "reasonable integrity." (Feb 2022)
List of Corporate Decarbonization Performance & Progress, 2021 (PDF)
Net Zero Guidance
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Corporate Climate Targets: ensuring the credibility of EU-regulated commitments (WWF France) — Provides companies and financial institutions with recommendations for setting ambitious and credible climate targets, required under EU law. It also provides methodological recommendations, including showing how the use of the Science Based Targets initiative (SBTi) methodology facilitates target setting and EU compliance. (March 2024)
Oxford Principles for Net Zero Aligned Carbon Offsetting (University of Oxford) — Updates the 2020 Principles, including these significant additions: 1) Reinforcing that reducing emissions must be the priority; 2) Increasing availability of high-quality carbon removal and storage; 3) Highlighting that nature-based solutions are critical for addressing the drivers and impacts of climate change; 4) Clarifying the risks and co-benefits of different types of removal and storage; 5) Defining terms to reflect new international guidance; and 6) Recognizing the value of mitigation outside of organizational net zero targets. (March 2024)
Net Zero Voting Guidance (Institutional Investor Group on Climate Change (IIGCC)) — Supports asset owners and managers in developing their own net zero voting policies and practices, providing implementation guidance. The guidance, which aligns with the Net Zero Investment Framework, outlines three core principles for a voting policy consistent with assets in the portfolio achieving net zero emissions by 2050 or sooner: 1) voting aligns with the investor’s own net zero objectives and targets; 2) voting communicates net zero expectations to companies and clients; and 3) voting supports net zero stewardship, engagement and investment approaches. (Feb 2024)
Industry Brief for the SBTi Financial Institutions Net-Zero Insurance Standard (Underwriting Portfolios) (Science Based Targets initiative (SBTi)) — This new brief provides background information on different approaches and potential methods for setting science-based targets to decarbonize insurance underwriting portfolios. It also provides context for how the standard will fit into the SBTi’s existing target-setting framework for financial institutions, and highlights core principles and the next steps in the process for developing a standard for insured emissions. (Dec 2023)
The Climate Drive (World Business Council for Sustainable Development (WBCSD)) — This online platform supports businesses and their suppliers in speeding up decarbonization efforts. Launched as a beta version in May 2023, this new version now includes a Net Zero Guidebook, which covers the fundamentals of the decarbonization journey for businesses, and an Action Library of almost 100 decarbonization actions and case studies across various sectors. It also includes the Net Zero Readiness Check, to help businesses self-assess progress against expectations from Top 30 Net Zero initiatives and standards. (Dec 2023)
The State of Climate Action: Major Course Correction Needed from +1.5% to -7% Annual Emissions (Alliance of CEO Climate Leaders) — Finds that in order to limit global warming to 1.5°C, emissions must be cut back by 7% each year from now until 2030. This will require “dramatic action,” including shorter-term net zero national and corporate commitments, faster deployment and funding of green technologies, and stronger global collaboration. As the report notes, only 35% of global emissions are covered by net-zero targets for 2050, and fewer than 20% of corporate targets of the world’s 1,000 largest companies align with a 1.5°C target. Additionally, the report points to a $2 trillion gap in yearly climate funding, with critical gaps in early technologies and infrastructure. To shift this trajectory, the report proposes a series of actions including: bolder national and corporate commitments; carbon pricing; strengthened incentives for technology and infrastructure; and increased climate financing for the Global South. (Nov 2023)
The Glasgow Financial Alliance for Net Zero (GFANZ) Secretariat launched a consultation to further refine the definitions of its transition finance strategies, to make them consistent and applicable across markets and sectors, and thus help to scale transition finance. The consultation will run until 2 November 2023. Feedback can be provided here. (Sept 2023)
Target Setting Protocol Version 4 (Net-Zero Asset Owner Alliance (NZAOA)) — NZAOA published a draft of the fourth edition of its Target Setting Protocol that includes new methodologies for private debt funds, real estate debt funds, residential mortgages, and sovereign debt. The public is invited to provide feedback until 29 September 2023. There will also be a webinar with NZAOA’s technical experts on 5 September at 17:00 CEST to learn more. (Sept 2023)
Net Zero Standard for North American Banks (Ceres) — This new guide adapts the Net Zero Standard for Banks by the Institutional Investor Group on Climate Change (IIGCC) for U.S. and Canadian banks to help with their transition to a net zero economy and understand investor expectations. The guide focuses on financed and facilitated emissions and includes guidance in ten areas in which investors expect banks to perform. These include: bank commitments; targets; exposure and emissions disclosure; historical emissions performance; decarbonization strategy; climate solutions; policy engagement; climate governance; just transition; and annual reporting and accounting disclosures. (Aug 2023)
Net-Zero Insurance Alliance (NZIA)— Ended the requirement that members set or publish greenhouse gas emission-reduction targets. NZIA, which is convened by the United Nations Environment Programme (UNEP), released its Target-Setting Protocol in January, setting a requirement for member companies to publish 2030 emissions targets by July. Press reports said only 12 of its peak 30 members remain following regulatory and litigation blowback after attorneys general from 23 U.S. states threatened legal action. UNEP encouraged all insurance market participants, not just remaining NZIA members, to continue to use the NZIA Target-Setting Protocol and the methodologies it outlines unilaterally and independently. (July 2023)
The Institutional Investors Group on Climate Change (IIGCC) launched a Net Zero Standard for Banks that sets out investor expectations on the transition to Net Zero. Launched in consultation with the Transition Pathway Initiative Global Climate Transition Centre (TPI Centre), the Standard is intended to support engagement with banks to aid implementation of climate commitments. It is built around 10 areas: bank commitments; targets; exposure and emissions disclosure; emissions performance; decarbonization strategy; climate solutions; policy engagement; climate governance; just transition; and annual reporting and accounting disclosures. The Standard complements the Net-Zero Investment Framework (NZIF). The TPI Centre also launched the Net Zero Banking Assessment Framework (NZBAF), a set of indicators and scoring guidance for assessing the alignment of banks with the Paris Agreement. The TPI Centre will use the NZBAF, which it produced in consultation with IIGCC and Ceres, to assess 26 global banks across Europe, North America, and Asia annually, starting in summer 2023. (June 2023)
Emissions from Oil and Gas Operations in Net Zero Transitions (International Energy Agency (IEA)) — The production, transport, and processing of oil and gas accounted for nearly 15% of energy-related greenhouse gas (GHG) emissions, the equivalent of 5.1 billion metric tons of CO2, in 2022. The report details five key levers to reduce emissions intensity by 50% by 2030, including:
- Tackling methane emissions;
- Eliminating all non-emergency flaring;
- Electrifying upstream facilities with low-emissions electricity;
- Equipping oil and gas processes with carbon capture, utilization and storage; and
- Expanding the use of low-emissions hydrogen in refineries.
IEA estimates these measures would cost $600 billion upfront (65% in capital expenditure, 35% operating costs) — only a fraction the record windfall income that oil and gas producers accrued in 2022, as the agency notes. However, electrification, methane, and flaring would generate more than $200 billion in new income, reducing costs further. (May 2023)
The Climate Drive (WBCSD) — The beta version of a digital platform designed to “support companies across all sectors to implement their emissions reduction targets, by centralizing and simplifying access to the latest knowledge on corporate net-zero and linking it to trusted, actionable, and industry-specific decarbonization guidance.” Over 40 global companies and the University of Oxford’s Net Zero research initiative helped develop the platform. The platform features four main components:
- A “Net Zero Readiness Check” for companies to self-assess the preparedness of their organization against common expectations from over 30 net zero initiatives and standards and identify opportunities to align with them.”
- A “Guidebook” detailing how to design and execute the net-zero corporate journey.
- An “Action Library” of decarbonization solutions with implementation guidance.
- A “Collaboration Hub” to host knowledge peer exchanges and events (not yet available).
WBCSD plans to release the first fully-functioning version of The Climate Drive by 2024. (May 2023)
Climate Action 100+ — Released an updated Net Zero Company Benchmark 2.0. The benchmark is categorized into two types of indicators: Disclosure Framework Indicators (evaluating the adequacy of corporate disclosures) and Alignment Assessments (evaluating alignment of company actions with Paris Agreement goals). The updates focus on emissions reductions, evaluating alignment with 1.5°C pathways, and assessing net-zero planning. It has also been redesigned to help investors better understand and communicate the benchmark, structuring assessments into indicators, sub-indicators, and metrics. Several Disclosure Framework Indicators have been added or significantly amended including: decarbonization strategy (Indicator 5); Capital Allocation (6); Climate Policy Engagement (7); and Just Transition (9). Under climate governance (8), the benchmark will now assess Board climate competencies and capabilities (8.3). Under Alignment Assessments, Climate Policy Engagement Alignment Assessments are being expanded to evaluate climate lobbying performance; and Capital Allocation Alignment Assessments are being expanded for utility and auto companies. Moving forward, the company review period for the Disclosure Framework will run for four weeks from the end of April and assessments using Benchmark 2.0 will be released in September/October 2023. (April 2023)
Decarbonization Guide for Members (Sustainable Apparel Coalition (SAC)) — Provides a six-step process by which organizations can commit and set science-based targets (SBTs) and develop action plans to deliver individual targets. This guide is part of SAC’s Decarbonization Program, launched last year to drive SBTs adoption and emissions reductions in the textile and apparel industries. The steps include: getting internal buy-in for SBTs, making a commitment, developing SBTs, submitting and validating the SBTs, communicating and disclosing SBTs (within six months of approval), and developing an action plan and taking actions. (March 2023)
Copper: The Pathway to Net Zero — In a new roadmap, the International Copper Association has set out plans to reduce members’ Scope 1 and 2 emissions by 30-40% by 2030, by 70-80% by 2040, and reach net-zero by 2050, even as demand for copper doubles by 2050. Members would also aim to reduce scope 3 emissions by 10% by 2030, 30-40% by 2040, and 60-70% by 2050, resulting in a collective emissions reduction of up to 85% by 2050. The roadmap details four levers based on market-ready and developing technologies: alternative fuels, equipment electrification, green electricity, and energy efficiency. Carbon capture and offsets would be limited to minimal, highly specific cases. (March 2023)
Decarbonization Fundamentals in Manufacturing (ENGIE Impact) — This guidebook provides practical lessons on decarbonizing a company's operations, including energy efficiency, heat decarbonization, renewable electricity, and scalability of implementation. It also addresses common challenges, such as delays, uncertainties, rising energy costs, geopolitical issues, stakeholder misalignment, lack of technology, and the need for large capital investments. The guidebook was developed from key takeaways from the Net Zero Manufacturing Masterclass series, a joint effort from ENGIE Impact and the World Business Council for Sustainable Development. (Feb 2023)
Technical Report: The SBTi Interim 1.5°C Sector Pathway for Aviation (Science Based Targets initiative) — Details a robust and credible interim pathway for aviation companies to set 1.5°C-aligned targets, in line with industry expectations for technology deployment and airline traffic. This interim pathway will be used until updated sector guidance is developed in consultation with an Expert Advisory Group and public consultation. (Note that targets set using the interim pathway before the update is released will remain valid.) (Feb 2023)
Target Setting Protocol Third Edition (Net Zero Asset Owner Alliance (NZAOA)) — NZAOA released a significant update to its Target Setting Protocol. Key changes (Feb 2023):
- Guides members to encourage investee companies to prioritize emission reductions and disallows the use of carbon removals to achieve intermediary emission targets that detract from these efforts (until at least 2030);
- Formulates a methodology for direct private equity investments and requires members to start setting targets in 2023 and cover all new private equity assets by 2025;
- Provides guidance on carbon accounting for sovereign debt;
- Asks members to begin phasing in target-setting on new commercial real estate loans;
- Explicitly asks members to consider Just Transition impacts — ensuring the benefits of the low carbon transition are widely and fairly shared — to their decarbonization targets. Members are also encouraged to focus on emerging markets when setting climate solutions investment targets, to address these markets' increased vulnerability to climate change and fewer resources to transition from fossil fuels.
Financial innovation for SME net zero transition: Role of banks and buyers — The University of Cambridge Institute for Sustainability Leadership and others published a new report highlighting the role of commercial banks and multinational corporations in helping small and medium sized businesses (SMEs) reach net zero. The report specifically explores several ways to help including (Jan 2023):
- Creating a climate readiness classification process that provides SMEs appropriately calibrated transition resources;
- Establishing a centralized, shared ESG/emissions data repository to help facilitate and incentivize SME reporting;
- Creating SME decarbonization roadmaps and benchmarks to incentivize behavior change;
- And setting up a marketplace to provide net zero transition support services for SMEs.
NZIA Target-Setting Protocol Version 1.0 (Net-Zero Insurance Alliance (NZIA)) — NZIA launched the Alliance’s first Target-Setting Protocol. This will enable NZIA members to begin to independently set science-based, intermediate targets for their respective insurance and reinsurance underwriting portfolios in line with a net-zero transition pathway consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. Existing NZIA members (29 total representing 15% of world premium volume) are required to set and disclose their initial targets by July 31, 2023. (Jan 2023)
The role of Nature-based Solutions in strategies for Net Zero, Nature Positive and addressing Inequality (WBCSD) — Presents the role of companies’ actions on Nature-based Solutions (NbS) and how this can be leveraged to address climate, nature, and equity issues. The report, which also includes four supporting technical papers, looks at NbS’s role in achieving Net Zero and looks at how NbS can be used to support corporate sustainability action. (Nov 2022)
Net Zero Playbook for Consumer Industries (The Consumer Goods Forum (CGF), Accenture, and the Race to Zero) — This playbook contains practical solutions to help consumer-facing companies address complex emission challenges and develop decarbonization roadmaps. It outlines opportunities for companies as they move toward net zero, and provides case studies on how industry leaders are taking action across key decarbonization levers, including sustainable agriculture, plastics and packaging, transport and logistics, consumer use, and supplier enablement. CGF also launched a Carbon Solutions Hub that aggregates resources and case studies to help companies navigate their climate journeys. (Nov 2022)
Net Zero Guidelines (The International Organization for Standardization, Race to Zero, and the UNFCCC’s Global Innovation Hub) — Developed by more than 1,200 experts from over 100 countries, these guidelines serve as a “core reference text” on what to include in companies’ net-zero plans. Specifically, these guidelines help provide a common definition of net-zero and related terms, provide high-level principles, actionable guidance on getting to net-zero as soon as possible, and how to communicate transparently, consistently, and credibly. (Nov 2022)
A UN panel comprised of 17 environmental and finance experts delivered a report to the UN Secretary-General providing 10 practical recommendations “to bring integrity, transparency and accountability to net zero by establishing clear standards and criteria.” Seeking to rein in false claims by non-state actors (industry, financial institutions, cities and regions), the recommendations advocate that these entities do the following (Nov 2022):
- Make a net zero pledge with supporting targets and transition plans and disclose these annually;
- Not buy cheap carbon credits with low integrity nor reduce emissions intensity instead of reducing absolute emissions;
- Phase out use and support of fossil fuels;
- Not lobby to undermine government climate policies, directly or indirectly;
- Avoid the destruction of remaining natural ecosystems from operations and supply chain operations;
- Shift from voluntary initiatives to regulated, and less fragmented, requirements for net zero.
Glasgow Financial Alliance for Net Zero (GFANZ) — Released its recommended pan-sector framework for Financial Institution Net-Zero Transition Planning, and voluntary guidance on measuring portfolio alignment. This includes four aspects of enabling “transition finance,” including investing in climate solutions, in business models aligned with net zero, and in companies in the process of aligning, and a managed phase-out of high-emitting assets that will become stranded. GFANZ also issued a Call to Action to G20 governments to publish more robust transition plans with sector-specific strategies and provide clarity on the policies that would be enacted to support them. (Nov 2022)
Net Zero Investor Playbook —
An open-source resource from the Investor Leadership Network that offers institutional investors a synopsis of current approaches, methodologies, and frameworks to help implement net zero transition programs.
Insights are categorized into four themes: (1) Portfolio emissions forecasting and target setting; (2) Alignment with broader portfolio construction and risk parameters; (3) Portfolio transition taxonomies; and (4) Portfolio holdings’ transition capacity metrics. (Oct 2022)
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The Science Based Targets initiative (SBTi) launched the Cement Science Based Target Setting Guidance to enable cement, concrete, and clinker manufacturers to set near- and long-term science-based targets in line with 1.5°C for the first time. The guidance also supports companies that purchase cement in the target setting process for their scope 3 emissions. (Sept 2022)
Mission Possible Partnership — New Sector Transition Strategies (STS) reports released for production of near-zero emissions materials — aluminium, ammonia, and steel — have won support from 60 companies, bringing the total endorsements to 200. The new STS reports follow earlier reports for aviation, shipping, and trucking. Strategies for concrete and cement and the chemicals sector are planned for release later this year. (Sept 2022)
Measuring corporate Paris Compliance using a strict science-based approach(Nature Communications) — Academics proposed a new set of conditions any emissions allocation methodology must meet before being classified as Paris-Compliant, and compared it against an initial scope of global companies. The proposal included four operationalization requirements for companies to declare they are on “Paris-Compliant Pathways,” including calculations of their carbon budgets. Of the ten global cement companies and ten Australian energy companies analyzed with the conditions, all but one of the companies (Engie) failed to be Paris-complaint. (Aug 2022)
Glasgow Financial Alliance for Net Zero (GFANZ) — The world’s largest coalition of financial institutions committed to a net-zero economy is seeking feedback on proposed new and enhanced guidance on measuring the alignment of financial institutions’ investments, lending, and underwriting activities with their net-zero commitments. The public consultation runs until September 12, 2022. (Aug 2022)
The Net-Zero Industry Tracker 2022 Edition (World Economic Forum) — Presents a tracking platform for heavy industries to transparently measure progress toward a net-zero-by-2050 scenario. The report is predicated on the dual premises that a) industrial sectors account for nearly 40% of global energy consumption and more than 30% of GHG emissions, and b) no industry is currently on track to achieve decarbonization levels necessary for a 2050 net-zero target. In that context, the authors highlight sector-specific "accelerators" and priorities for the steel, cement, aluminum, oil, natural gas, and ammonia sectors, and outline seven cross-sectoral recommendations for immediate action (see pages 5–6). (Aug 2021)
Carbon Solutions Hub (The Consumer Goods Forum (CGF) / Accenture) — Helps the retail and fast-moving consumer goods sectors “navigate the sustainability landscape, find inspiration, and set and perform against net-zero targets.” The Hub, designed to support CGF’s work as an official Accelerator of the UN’s Race to Zero initiative, consists of three sections (June 2022):
- An introduction to Net Zero providing context and rationale for decarbonization.
- A guide to the Race to Zero campaign and how to join.
- A Knowledge Repository to learn more. This comprises the bulk of the hub and is updated continually to feature the latest scientific research about decarbonization, case studies, and resources to help businesses—all categorized by type of decarbonization lever. There is also a content submission form on the site for third parties wishing to contribute.
Decarbonizing Petrochemicals: A Net Zero Pathway (BloombergNEF) — Reasons that
almost-net-zero emissions from the petrochemicals industry is possible with an
extra investment of $759 billion, but large-scale spending toward this goal
must start before 2030. In its low-emissions scenario, the report says carbon capture, utilization, and storage
(CCUS) could abate 40% of industry emissions. (May 2022)
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Navigating America’s Net-Zero Frontier: A Guide for Business Leaders (McKinsey & Company) — Provides guidance for business leaders to create effective strategies for achieving net-zero commitments within the context of the United States government’s goal to reach net-zero emissions by 2050. Authors encourage leaders to imagine “where their business would stand in a net-zero economy” that favors low-emissions goods and services, and how they could realize opportunities by “overhauling” their business models, including portfolio transformation, green business building, premiums on green attributes, and decarbonized operations. The analysis (May 2022):
- Maps emission sources and models a pathway for the U.S. to address its 7.2 billion metric tons of annual GHG emissions, including retrofitting facilities and infrastructure, decarbonizing transportation, and replacing 60% of the natural gas now in use with zero-carbon energy sources.
- Suggests that “transformation of every sector” will be required for the U.S. to meet a 1.5C scenario and highlights five climate solutions with enormous potential for both emissions abatement and economic growth through 2025: renewable power, electrification, operational efficiency, clean fuels, and carbon capture.
- Describes macro trends to help companies anticipate risks and opportunities, such as the accelerating deployment of tech and infrastructure to enable climate solutions, and declining costs that suggest “organizations could presently abate some 40 percent of US GHG emissions at no net additional cost.”
WWF, in partnership with H&M and Ikea, has produced a new set of climate action guidelines for “ambitious, credible corporate climate leadership” in a new publication entitled Beyond Net-Zero: A Business Pathway to Spur Urgent Climate Action Toward 2030. The guidance, which includes key tracking metrics, is based on the following 7 action steps (May 2022):
- Account and disclose consistently and transparently according to best available practices and against all commitments.
- Set climate targets in line with 1.5°C according to the SBTi near-term and Net-Zero criteria.
- Reduce value chain emission (scope 1-3) in line with the 1.5°C trajectory.
- Finance and support climate and nature solutions across and beyond the value chain.
- Engage responsibly and actively in climate policy in line with 1.5°C and ensure internal and external corporate policy alignment.
- Collaborate with value chain partners, peers, employees, and other key stakeholders.
- Enable and inspire customers through sustainable products and services, education and campaigns, and transparent and accessible information.
The Science Based Targets initiative (SBTi) launched a net zero standard development process for the finance industry by publishing initial concepts in its “Net-Zero Foundations for Financial Institutions” paper. The paper addresses several pertinent issues for financial institutions, including a standard definition for net zero, the use of offsets and carbon credits, and fossil fuel phase-out approaches. SBTi expects to launch the official standard in early 2023 and encourages financial institutions to engage in the standard development process. (April 2022)
The High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities, launched by UN Secretary-General António Guterres, will develop stronger and clearer standards for net-zero emissions pledges by businesses, investors, cities, and regions, and aim to increase ambition, accelerate implementation, and minimize “greenwashing.” Recommendations will be made by year-end and address four areas (April 2022):
- Current standards and definitions for setting net-zero targets.
- Credibility criteria to assess the objectives, measurement, and reporting of net-zero pledges.
- Verification and accounting processes to assess progress.
- A roadmap to translate standards and criteria into international- and national-level regulations.
The UK National Standards Body (BSI) announced the formation of a new Net Zero Strategic Advisory Group (SAG), which will provide guidance to BSI regarding net zero-related industry requirements and policy ambitions in an effort to ensure international standards for net zero are poised to support meaningful action. (April 2022)
Paris Aligned Investment Initiative’s (PAII) private equity guidance (the IIGCC) — New proposed guidance within the PAII’s Net Zero Investment Framework (NZIF) to help general partners and limited partners align their private equity portfolios with net zero by 2050. The first-of-its-kind guidance covers the scope of portfolio companies to be considered for measurement/management, metrics, targets, and implementation actions. It is open for public consultation until February 27, with the final component expected to be published in Q2. (Feb 2022)
List of Net Zero Guidance, 2021 (PDF)
Collaboration
Net Zero Collaboration
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Net-Zero Transition Charter: Accountability mobilization for the private sector (COP28 Presidency) — This charter is designed to help the private sector take bolder climate action and commit to greater transparency and integrity in their net-zero emissions pledges. To be part, signatories will have to commit to a series of actions, including making net-zero and interim targets with an existing, high-integrity body; producing a credible net-zero transition plan; reporting annual progress and committing to robust validations processes. Companies that sign the Charter by 15 November and meet all accountability criteria will be featured on the COP28 website. (Nov 2023)
Net Zero Innovation Hub for Data Centers — This new consortium aims to accelerate the European data center industry toward Net Zero. The Hub will foster knowledge sharing, set up innovation programs with academic and industry partners, identify challenges and facilitate calls for innovation projects to address these. It will also aims to provide a platform for engagement between data center operators and the public. The Hub is exploring projects to replace diesel generation at data centers, reuse heat, use renewables, and decarbonize building raw materials. Founding members include CEF members Google, Microsoft, and Schneider Electric.
Transitioning Industrial Clusters towards Net Zero (World Economic Forum) — Nine industrial clusters in China, Indonesia, Japan, Spain, and the United States have joined this initiative, which aims to connect 100 industrial clusters globally and reduce CO2 emissions from these clusters by 1.6 billion metric tons. This brings the total to 17 clusters, and includes new greenfield operations, particularly a number of hydrogen clusters. The initiative has also just published its first report, Transitioning Industrial Clusters towards Net Zero, and will host a number of public-private roundtables and regional workshops in 2023. (Jan 2023)
Glasgow Financial Alliance for Net Zero (GFANZ) — Published a draft Net zero Transition Plan (NZTP), a common framework for financial institutions to disclose plans to increase financing in alignment with the clean energy transition and 1.5C temperature rise. The NZTP is intended to make those plans consistent and comparable for evaluation by stakeholders, ultimately driving capital to companies with the most robust and credible plans and accelerating the overall transition. GFANZ has identified four essential approaches for financial institutions to support the real-economy transition to net-zero emissions (June 2022):
- Finance the development and scaling of net-zero technologies or services to replace high-emitting sources.
- Increase support for companies that are already aligned to a 1.5C scenario.
- Enable high and low-emitting real-economy companies to align business activity consistent with a 1.5 degrees C pathway for their sector.
- Accelerate managed phaseout of high-emitting assets.
Race to Zero (UN High Level Climate Champions for Climate Action) — The global campaign, designed to advance climate action by non-state actors, announced updated criteria for entities to join and remain in the group, following an international consultation with over 200 experts and civil society groups. The new criteria will be managed by the Partner initiatives, reviewed by an independent Expert Peer Review Group, and will come into effect for new members joining the campaign beginning June 15, 2022, while existing members will have until June 15, 2023 to comply. Updates include (June 2022):
- Two previously implicit requirements have been made explicit: 1) members must phase down and out all unabated fossil fuels by restricting the development, financing, and facilitation of new fossil fuel assets, including no new coal projects, and 2) members must publicly disclose a Transition Plan (or equivalent) within twelve months of joining Race to Zero.
- Members must align lobbying and advocacy activities with net zero by proactively supporting climate policies consistent with a 1.5% scenario at the subnational and national level.
Powering Net Zero Pact — A new collaboration focused on delivering a fair and just transition to net zero carbon emissions. The initiative is led by Scottish-based energy company SSE plc and includes 10 additional founding corporate partners from across the power sector, including CEF member GE Renewable Energy, Siemens Energy, Siemens Gamesa, Balfour Beatty, DEME Offshore, GE Renewable Energy, Hitachi Energy, NKT, RJ McLeod, subsea7 and Vestas. Partners have committed to investing at least £16 billion ($19.6 billion) in net zero and have identified five areas for collaboration: 1) Quantification of scope 3 carbon emissions; 2) Frameworks for achieving Biodiversity Net Gain; 3) Innovative products and methods for reducing waste; 4) Human rights risk mitigation across global supply chains; and 5) Support for competitive, local supply chains close to assets. (May 2022)
List of Net Zero Collaboration, 2021-2019 (PDF)