Highlights

• 69% of high-emitting companies pared down Scope 1 and 2 emissions, but only 32% matched 1.5°C-aligned intensity targets.
• Only 8% of companies disclosed realistic transition plans, with less transparency into capital allocation for decarbonisation.
• The steel sector leads in 1.5°C-aligned long-term GHG targets owing to investor engagement in Europe and Asia.

The Climate Action 100+ Benchmark results for 2025 signal mixed progress among the world’s highest-emitting companies.

As part of its ongoing investor engagement, Climate Action 100+, known as the world’s largest investor-led climate initiative, evaluated 164 companies based on emissions reduction, climate governance, and climate-related disclosure.

The Net Zero Company Benchmark is an independent assessment tool that helps investors and corporations understand climate-related financial risks and opportunities.

There has been, says the Benchmark, improvement in emissions reduction and decarbonisation disclosures, with several firms showing better alignment with 1.5°C sectoral benchmarks. Yet, the progress is disproportionate, as many companies still lack detailed capital allocation plans to back their net zero targets.

Read More: SBTi Launches Net-Zero Guidelines for Financial Sector

These findings indicate that although investor engagement has intensified, corporate actions need to accelerate for alignment with the Paris Agreement goals.

Important findings for 2025

Emissions Reductions

According to the Benchmark, 69% of companies logged a fall in their Scope 1 and 2 emissions in the past three years. However, only 32% managed to lower their emissions intensity in line with a 1.5°C benchmark.

This is a small increase from last year’s figures, meaning there is progress but at a snail’s pace. To align with global climate objectives, emissions cuts must continue at a faster rate.

Climate Plans and Disclosures

On decarbonisation strategy disclosures, only 8% of companies have shared promising transition plans for their medium- and long-term GHG reduction targets, which marks a 4% improvement from 2024.

Companies are also providing more detail on offsets, abatement measures, and climate solutions, though many still fail to explain how financial investments link to these commitments. This lack of transparency in capital allocation is a profound difference.

Also Read: FCA Plans to Relax Climate Reporting Rules for Financial Firms

Targets

In terms of target setting, 85% of assessed companies have medium-term targets, 80% have long-term targets, and only 41% have short-term goals. This marks a small decline from the previous year, yet six more companies now have short-term targets consistent with credible 1.5°C pathways.

The Benchmark suggests that short-term targets are vital for tracking progress toward net zero ambitions.

Climate Accounting and Audits

Performance in climate accounting and audit disclosures showed little change from last year. Still, European and UK companies lead in this area, with 81% meeting part of the Carbon Tracker assessment criteria. Their methodology could be used as a model for others looking to improve the incorporation of climate factors into corporate audits.

Climate Policy Engagement

Corporate progress on climate policy engagement also plateaued this year. The proportion of companies aligning their direct policy engagement with the Paris Agreement stayed the same as in 2024, whereas alignment through industry associations dropped by 2%.

As a result, only 2% of firms now meet InfluenceMap’s top standard for policy engagement alignment. This shows that companies need to make stronger connections between their public policy activities and climate goals.

See Also: Malaysia Charts Steel Industry Roadmap 2035 for Low-Carbon Future

Other Important Insights

Several positive developments were noted within certain industry sectors. The steel sector, for instance, shows encouraging ambition as all assessed companies have set 1.5°C-aligned long-term GHG reduction targets, a result linked to focused investor interactions in Europe and Asia.

Overview

Overall, the 2025 Benchmark findings signal an increasing awareness among high-emitting companies about the importance of transparent climate action and credible decarbonisation planning.

Nevertheless, progress is inconsistent, as many firms are yet to match commitments with financial and operational implementation. For investors, these results keep them abreast of which sectors are aligning more closely with global net zero ambitions and where lagging progress still persists.

***

Looking for sustainability and ESG specialists to support your business?

Explore our ESG Marketplace or solutions page, which features over 1000 providers who offer affordable solutions and services tailored to your business.

Stay updated with our Climate & Environment News for the latest insights.

Also, don’t miss our upcoming ESG Events for fresh perspectives.

Source: Climate Action 100+