Net Zero Benchmark Reveals Mixed Progress

Climate Action 100+, an investor-led climate initiative, released this October updated Net Zero Company Benchmark assessments for 168 companies. The Benchmark evaluates corporate progress on governance, emissions reduction and climate disclosures, focusing on alignment with 1.5°C temperature increase goals.

The assessments evidence mixed progress. Most assessed companies have established 2050 net-zero targets, implemented board-level climate oversight and committed to TCFD-aligned disclosures. While emissions intensity is improving and the companies are increasingly transparent about decarbonization plans, the pace of actual emissions reduction falls short of 1.5°C pathways. Key challenges include:

· Declining short-term target setting since 2023, despite maintained medium and long-term commitments;

· Limited concrete implementation plans for net-zero goals;

· Insufficient alignment between company policies and Paris Agreement objectives; and

· Inadequate capital allocation to low-carbon solutions, particularly in oil and gas sectors.

Some sectors show stronger progress than others, with airlines, automotive and utilities demonstrating notable improvements in emissions reduction intensity. However, the assessments emphasize the urgent need to bridge the gap between climate commitments and actual implementation through stronger short-term targets, aligned policies and actionable strategies.