In 2024, global companies demonstrated a notable shift in their climate ambitions, as revealed by a recent MSCI report. Despite policy challenges, there was a marked rise in companies with validated science-based emission goals, while efforts to separate revenue growth from greenhouse gas emissions continued to gain traction. The MSCI Transition Finance Tracker, which studied companies in the MSCI All Country World Investable Market Index (ACWI IMI), highlights not only the rise in environmental commitments but also the evolving landscape of corporate responsibility in terms of emissions reduction and financial strategy.
Similar assessments conducted over previous years highlight a trend where companies, despite a stable commitment rate, increased their level of ambition. Reports consistently show that companies have demonstrated a growing awareness and willingness to address climate change, with rising commitments to either science-based targets or net zero goals. Although these reports demonstrate progress, challenges like regional disparities and differences across sectors remain persistent issues.
How are emissions targets being set?
The recent MSCI report identified a significant increase in companies setting science-based targets, with 14.2% of listed companies adopting validated goals in 2025, up from 9.3% the previous year. Additionally, those setting companywide net zero targets increased to 29.3%. However, the momentum of setting new commitments has slowed compared to past years, highlighting a focus on increasing the stringency of existing goals.
What role do sectors play in setting climate goals?
Sectors distinctly vary in their climate commitment strategies. Industrial companies showed the highest share of adherence to science-based emissions targets at 21.5%, followed by consumer discretionary and information technology. By contrast, the utilities sector showed minimal involvement, and the energy sector had no participation in SBTi-validated targets, highlighting gaps in climate accountability within certain industries.
On a regional scale, differences were apparent as well. Developed markets such as the U.S., Japan, Germany, and the UK successfully separated revenue growth from emission increases. The U.S. led with a notable 10% decline in emissions since 2015. Contrastingly, emissions in emerging markets like China saw a significant increase, primarily linked to industrial activity expansion.
When assessing global climate goal alignment, the report found that only a small fraction of companies are currently on track to limit temperature rise to 1.5°C, evidencing a gap between corporate ambition and international environmental targets. Companies across Germany, for instance, are among the most aligned, whereas Saudi Arabian companies face the largest discrepancies with much higher temperature rise projections.
As companies around the globe navigate the complexities of climate change, MSCI’s report demonstrates the mixed progress in corporate climate goals. Despite increased commitment and ambition, a significant number of companies still lag behind international climate targets. Continuous enhancement and execution of effective climate strategies remain critical to bridging the existing gaps between ambition and action.
