Number of firms with net-zero pledges doubles, but questions remain over credibility
The number of the world’s largest companies committing to net-zero targets has surged, nearly doubling over the last two and a half years, according to new research. An analysis by Net Zero Tracker found that 909 of the Forbes Global 2000 companies now have net-zero goals, a 46% increase from 417 in December 2020.
In the UK, 61 Forbes 2000 firms—including Royal Mail, Lloyds Banking Group, Sainsbury’s, and Taylor Wimpey—have pledged net-zero targets, up 60% from 37 companies over the same period. This rise comes as researchers from the Energy and Climate Intelligence Unit and the University of Oxford release their latest stocktake, warning of potential “credibility gaps” that could hinder meaningful progress toward net-zero goals.
Despite the uptick in targets, only 4% of these commitments globally align with the UN Race to Zero campaign’s baseline criteria, which demand comprehensive coverage of greenhouse gases, conditions for offsets, and public action plans. Moreover, just 37% of targets fully address emissions from sold products, and only 13% define quality standards for offsets.
Fossil fuel companies, despite pledging net-zero goals, are lagging on commitments to phase out oil and gas, contrary to UN guidelines which call for specific targets to end fossil fuel reliance. Researchers highlighted that no fossil fuel firm has yet made the necessary steps to transition fully away from extraction and production.
Dr Steve Smith of Oxford Net Zero commented: “Hoping fossil fuel companies commit to net zero is like asking turkeys to vote for Christmas. Yet even in a decarbonised world, we need clean energy solutions and skills from these sectors.” Meanwhile, Alexis McGivern from Oxford Net Zero stressed the importance of consensus-driven, robust standards for net-zero commitments, urging policymakers to create regulations that level the playing field and propel companies towards genuine climate action.
