Climate Impact Partners, a global carbon finance organisation, has unveiled its sixth annual study evaluating the climate commitments of Fortune Global 500 companies. The latest report highlights a significant shift in corporate climate goals, with 45% of the world’s largest companies now aiming for net zero by 2050, up from 39% last year and markedly higher than the 8% recorded in 2020.
The report also explores the types of climate commitments companies are making and their strategies for achieving these goals, including the use of carbon credits.
Despite political and economic uncertainties, North America has seen the largest increase in companies with significant climate targets, with 79% committing to 2050 goals, up from 73% last year. Asia follows with 46% of companies making similar commitments, an increase from 45% last year. In Europe, where over 95% of companies already have significant commitments, there was no notable growth in this area.
The study reveals that 42% of companies now plan to use carbon credits to meet their carbon neutrality or net zero targets, up from 40% last year. By investing in verified carbon projects, companies can enhance their stakeholder engagement, strengthen internal climate support, and contribute to impactful climate initiatives, often in underfunded regions.
The report highlighted that companies incorporating carbon credits into their climate strategies are more likely to adopt rigorous reduction targets. Those using carbon credits are twice as likely to set near-term Science Based Targets and three times more likely to aim for net zero across their entire value chain. Additionally, businesses actively pursuing carbon neutrality are nearly 1.7 times more likely to have comprehensive near-term Science Based Targets compared to those not planning for carbon neutrality by 2030.
“Companies may be continuing their climate action quietly, but we should be celebrating this increase in corporate commitments loudly. 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. The Fortune Global 500 can help lead the way to turn up the volume on climate action and drive impact today,” said Sheri Hickok, CEO of Climate Impact Partners.