Less Than Half of Companies Have Net-Zero Goals

Jennifer Post


June 11, 2024

Various green energy symbols with factory stack in background

As regulatory and consumer pressure grows for companies to increase their sustainability efforts, many are taking steps to cut their greenhouse gas emissions. However, according to S&P data, only 45% of U.S. organizations have made any net-zero commitments. The utilities, communications and consumer discretionary sectors have the highest percentage of companies with net-zero commitments, while consumer staples, real estate and materials have the lowest.

To spur climate action, 15% of S&P 500 companies now link CEO compensation incentives to emissions reduction goals (up from 9% in 2021), while 27% have established incentives for other executives (up from 19%).

“As investors obtain more climate-related information and more transparency into corporate emissions, companies could face more market pressure to build transition plans that include decarbonization or a net-zero goal,” the report said. “Net-zero target-setting could evolve to become the norm.”

Jennifer Post is an editor at Risk Management.