Most Corporate Net-Zero Pledges Fail To Meet 1.5°C Target: UN Report

Despite a 23% increase in corporate net-zero pledges since June 2023, only a few meet the high standards needed to align with the 1.5°C target, according to a new UN report released at the COP29 climate summit in Baku. The report, titled "Integrity Matters: The Hard Work Is Now," was prepared by the UN High-Level Expert Group on Net Zero Emissions Commitments of Non-State Entities and highlights the need for stronger, transparent climate actions from businesses, cities, and financial institutions to prevent global warming from exceeding 1.5°C.

The report reveals that while more corporations are pledging to reach net-zero, most of these commitments lack key elements such as clear fossil fuel phase-out plans, detailed Scope 3 emissions tracking, and "just transition" principles, which ensure fair impacts on workers and communities. The report also points to a concerning forecast from the UN Environment Programme’s recent Emissions Gap Report, which predicts a 3.1°C temperature rise if current policies continue. UN Secretary-General Antonio Guterres emphasized the urgency, saying, "Closing the emissions gap means closing the ambition gap, the implementation gap, and the finance gap."

While some entities are taking the lead, like the Net Zero Asset Owner Alliance, which has achieved a 6% reduction in financed emissions annually, the report highlights broader gaps in global efforts to phase out fossil fuels and expand renewable energy. Nearly 100 cities are now aligning their climate action plans with the Paris Agreement, and California and the European Union have introduced mandatory climate disclosures, setting new standards for climate accountability.

Catherine McKenna, chair of the High-Level Expert Group, emphasized the importance of scaling up these efforts, noting, “The leaders highlighted in this review show that high-integrity net zero can be achieved. It’s no longer credible for companies, investors, cities and regions to claim that moving faster on the climate crisis is too difficult or expensive.” McKenna added, “However, to meet the 1.5C Paris Agreement target, we need a much broader range of companies, investors, and cities.”

The report calls for decisive action at COP29, urging global leaders to implement mandatory, transparent climate transition policies to close the gap between climate commitments and the urgent action required.

(This story has been slightly reworked from an auto-generated PTI feed.)