The way companies aim for net zero is flawed. It’s also working

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Two newly published academic studies suggest that despite criticism of corporate net-zero strategies and carbon markets, many climate initiatives are still producing measurable environmental benefits, particularly in reducing deforestation and supporting long-term emissions cuts

🔭 The context: One study published in Nature evaluated 44 REDD+ forest carbon projects and found that most helped avoid deforestation, despite longstanding concerns around overstated carbon credits and governance issues
• A second study from the Grantham Research Institute on Climate Change found that companies with long-term net-zero targets tend to reduce emissions more over time than firms without such commitments, even if short-term impacts are limited

🌍 Why it matters for the planet: The findings challenge simplistic narratives that corporate climate commitments are either complete greenwashing or immediate solutions
• Instead, the research suggests that imperfect mechanisms such as carbon credits and net-zero targets may still play an important role in financing forest protection, shifting corporate behavior and accelerating organizational transition over decades

⏭️ What’s next: Researchers and climate experts argue that stronger standards, interim targets, transition plans and improved carbon accounting will be necessary to increase credibility and effectiveness
• The debate is likely to intensify as companies face growing scrutiny over climate claims while navigating political backlash and evolving disclosure requirements

💬 One quote: “They don’t support the view that these are just empty promises.” — Simon Dietz, Grantham Research Institute

📈 One stat: Researchers assessed 44 REDD+ projects, finding that most contributed to avoiding deforestation

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