Climate Impact Partners' Annual Fortune Global 500 Report Shows Quiet Climate Action

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Sep 17, 2024, 08:56 ET

Despite external crises and ESG backlash, net zero commitments are up six percentage points this year among the world's largest companies.

NEW YORK, Sept. 17, 2024 /PRNewswire/ -- Climate Impact Partners, a leading global carbon finance organization, today released the sixth annual study assessing the climate commitments of Fortune Global 500 companies. The latest report reveals that the world's largest companies are quietly setting more significant, ambitious targets: 45% of companies plan to be net zero by 2050, up from 39% last year and dramatically up from 8% since 2020.

"Companies may be continuing their climate action quietly, but we should be celebrating this increase in corporate commitments loudly," said 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. The Fortune Global 500 can help lead the way to turn up the volume on climate action and drive impact today."

The report examined the type of climate commitments being made, as well as how companies are planning to utilize tools like carbon credits to reach their goals:

Despite ESG politicization, North America has seen the biggest increase in companies with significant targets.
Companies today are still pursuing ambitious climate targets in spite of economic uncertainty and intensified ESG backlash. In North America, companies are stepping into action - 79% have a significant commitment by 2050. This is up from 73% last year. In Asia, 46% of companies have a significant commitment by 2050, up from 45% last year. In Europe, where over 95% of companies already have a significant commitment, there was no growth in the number of companies with one.

More companies are planning to use carbon credits to reach their climate targets.
42% of companies explicitly state they will use carbon credits to meet a carbon neutral or net zero target. This is up from 40% last year. Purchasing carbon credits and compensating for residual emissions offers companies a competitive advantage. By supporting verified carbon projects, businesses can enhance stakeholder communication, foster internal climate support and meet their climate objectives. Credits also enable companies to direct funds to impactful climate projects, often located in regions with a lack of investment in climate solutions.

Companies with carbon credits as part of their climate action plan are more likely to have more rigorous reduction targets.
Companies committed to using 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.

By putting a price on carbon in the business through carbon credits, companies pursuing carbon neutrality and taking action now are almost twice (1.7x) as likely to have near term Science Based Targets across the entire value chain (including Scope 3) than companies that are not carbon neutral or do not plan to be by 2030.

To view the full report and methodology follow this link.

About Climate Impact Partners:
Climate Impact Partners is a leader in developing and delivering high-quality, high-impact carbon market solutions for climate action. For more than 25 years, the company, which is committed to delivering 1 billion tonnes of CO₂, has worked with climate-leading businesses to support more than 600 carbon removal and reduction projects in 56 countries. With a focus on helping to transform the global economy, improve health and livelihoods and restore a thriving planet, Climate Impact Partners develops and delivers the highest quality carbon-financed projects. It creates and manages carbon credit and energy attribute certificate portfolios that enable its clients to offset emissions they can't yet reduce, put a price on carbon to incentivize change, and meet ambitious climate goals. Climate Impact Partners builds on the expertise, integrity, and innovation of two companies that have led the voluntary carbon market – Natural Capital Partners and ClimateCare. Learn more at www.climateimpact.com.

Media Contact:
Mehak Chadha
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SOURCE Climate Impact Partners