The number of companies, cities and regions with net zero commitments has increased by 23%, 8% and 28% respectively since June 2023. This is according to the latest update issued by Net Zero Tracker – a database tracking net zero commitments made by nations, states and regions, cities and major companies. Despite this progress, more than 40% of major non-state and subnational actors are yet to set emission reduction targets. Though the amount of companies with net zero targets meeting all minimum levels of integrity has increased by 63%, the absolute number remains low – just 61 out of 1,145 assessed companies. “Halving global emissions by 2030 and reaching a resilient net zero future by 2050 requires an all-of-society approach,” said Razan Al Mubarak, UN Climate Change High-level Champion for COP28. “We need to scale up policies and regulations, enhance systems of accountability, and ensure that nature and inclusion are centred in a just transition.” Last week, Generation Investment Management (GIM) published its eighth ‘Sustainability Trends’ report, noting that political pressure and “woke capital” attacks over the past two years have contributed to reductions of capital allocated to sustainable investing. The financial services industry has also pulled back from such commitments. “Year after year, the world has increased the number and types of solutions available to solve the climate crisis,” said Al Gore, Chairman and Founding Partner of GIM. “But leaders across government and business have all too frequently failed to match ingenuity with action.” Nonetheless, GIM pointed to the rapid growth of renewable electricity capacity globally, arguing that a step-change is needed to ensure significant grid upgrades are financed and assured to “harness the wave of low-cost solar and wind”. Elsewhere, PwC’s 2024 Net Zero Economy Index estimated the required annual rate of decarbonisation to limit global warming to 1.5°C by 2050 at 20.4% – although no Group of 20 country has achieved an annual rate higher than 11.5% since 2000.
