38% of companies’ emissions trajectories are aligned with global climate goals: MSCI

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🗞️ Driving the news: A new MSCI report reveals that just 38% of globally listed companies have emissions trajectories aligned with the global climate goal of limiting temperature rise to 2°C
• Although companies are making progress, with more setting ambitious climate targets, two-thirds of companies are on track to exceed the 2°C target, signaling the urgent need for more ambitious climate action

🔭 The context: The report highlights the pace of target-setting among companies, with 60% of listed companies now publishing climate commitments, up from just 26% in 2020
• Despite this progress, only 12% of companies are aligned with the more ambitious 1.5°C target
• MSCI’s analysis also shows regional differences, with countries like Italy and France on track to limit temperature increases
• Emerging markets like Saudi Arabia, India, and China show higher temperature trajectories

🌍 Why it matters for the planet: The global corporate sector’s emissions trajectory is key to limiting global warming
• If current trends continue, the world’s listed companies are on track to cause a temperature rise of 3°C by the end of the century, far exceeding the climate goals outlined in the Paris Agreement
• Greater alignment with the 1.5°C target is critical to prevent catastrophic climate impacts, and companies need to take more decisive action to meet these targets

⏭️ What's next: As more companies adopt ambitious climate targets, the focus will likely shift to implementing actionable strategies that align with the 1.5°C pathway

💬 One quote: “While most companies are not yet aligned with global climate goals, the integrity of those goals continues to increase,” said MSCI in its report

📈 One stat: The proportion of listed companies with SBTi-approved targets rose to 19% in 2025, up from 14% in 2024

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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