Some 45% of Fortune Global 500 companies are planning to be net zero by 2050, up from 39% last year, and from 8% in 2020, a new study by Climate Impact Partners has found.
Climate Impact Partners’ sixth annual study into the climate commitments of Fortune 500 companies found that firms are ramping up their net zero initiatives despite external crises and a growing backlash against ESG.
Future-proofing business
“Companies may be continuing their climate action quietly, but we should be celebrating this increase in corporate commitments loudly,” commented Sheri Hickok, CEO of Climate Impact Partners. “The top earning companies know that despite economic headwinds and ESG backlash, tackling the climate crisis is critical to future-proofing their businesses.
“Companies need to act now, setting more ambitious targets and using vital tools such as carbon credits to accelerate progress.”
Hickok suggested that the actions of the Fortune Global 500 can “turn up the volume on climate action”, and help to drive wider impact.
Increased activity
North America is seeing a significant increase in firms taking action – some 79% have a 2050 commitment in place, up from 73% last year.
In Asia, meanwhile, 46% of companies have a net zero commitment (up from 45% last year), while in Europe, an impressive 95% of companies already have a significant commitment in place (this has remained unchanged, year-on-year).
Elsewhere, across all companies, 42% said that they intend to use carbon credits to achieve a carbon neutral or net zero target, believing that the purchase of said credits enables them to compensate for residual emissions.
Firms that are committed to the use of carbon credits are twice as likely to have a near term Science Based Target and three times more likely to have a net zero target for their entire value chain, Climate Impact Partners commented.
The full report can be found here.
