The number of companies setting both near-term and net-zero science-based climate targets rose by 227% between the end of 2023 and the second quarter of 2025, new data from the Science Based Targets initiative (SBTi) has revealed.
According to the SBTi’s Trend Tracker, there has been ‘rapid growth’ in science-based target setting worldwide, with Asian markets leading the charge.
The number of companies setting near-term science-based targets nearly doubled (+97%) in the 18-month period, it noted.
‘A strong business case’
“Smart companies continue to see a strong business case to manage transition risk,” commented David Kennedy, CEO, Science-Based Targets initiative. “Building climate action into commercial strategy helps maintain competitiveness now and in the future and allows companies to capitalise on opportunities in the low-carbon economy. That forward-thinking approach has been playing out in the surge in science-based target setting over the past 18 months.”
As of the end of 2023, the number of companies with both near-term and net-zero targets stood at 17%, growing to 33% by the end of 2024 and 38% as of Q2 2025, ‘indicating increasing commitment to long-term strategic transformation that builds climate resilience’, SBTi said.
‘Exceptional momentum’
Asia demonstrated ‘exceptional momentum’ in terms of the adoption of science-based targets, with the number of validated companies in the region rising 134%, and the number in China growing from 137 to 450, a growth rate of 228%.
Elsewhere, Thailand, Japan, Taiwan, Hong Kong, and Korea accounted for six of the top 20 fastest-growing markets over the 18-month period.
On a sector-by-sector basis, meanwhile, the Industrials sector led the way in terms of adoption, accounting for nearly one-third of all companies with targets. This was followed by the Consumer Discretionary sector (encompassing automotive, household durable goods, and textiles and apparel producers), and Materials.
Companies with validated targets or commitments represented more than two fifths (41%) of global market capitalisation at the end of 2024, up from 39% in 2023.
“The message is clear: if businesses want to be ahead of the curve, then science-based targets are where businesses start,” Kennedy added. Read more here.
