2021 Reports

Corporate Net-Zero Pledges: The Bad and the Ugly

Arnold, Jack Nicholas; Toledano, Perrine

The Paris Agreement on Climate Change, adopted in 2015 and ratified or acceded to by 192 states and the European Union (EU), marked a historic turning point on global climate action. Achieving the agreement’s goal of limiting global warming to not more than 1.5 °C relative to the industrial era (1880-1900) will require a transformation of global energy systems, with the active participation and contribution of all actors in the economy. Many companies have pledged to reach netzero direct and indirect greenhouse gas (GHG) emissions by 2050. This report analyzes such pledges by 35 companies across seven industries—oil and gas, mining, chemicals, utilities, cement, steel, and food processing—that jointly represent 64% of global GHG emissions on a direct emissions (scope 1) basis