What makes today's climate leaders tomorrow's business leaders?
Companies that act early on climate are building advantages others will struggle to match.
Climate action barometer
Proactive climate action can be a valuable strategic opportunity.
What is a transition plan?
A time-bound plan that sets out how a company will align its strategy, operations and investments with a low-carbon economy.
About this research
We analyzed climate disclosures and transition plans from large companies across sectors and regions.
Companies are making limited progress on climate action
Many companies have set targets, but fewer have credible plans to meet them, and reported emissions reductions remain modest.
Disclosure can be contagious, in both directions
When peers hold back on climate risk disclosure, others may follow, slowing collective progress.
Decarbonization levers and the challenge of value chain emissions
Value chain emissions are often the largest share and the hardest to influence.
Understanding emissions scopes
Scope 1 covers direct emissions, scope 2 purchased energy and scope 3 the wider value chain.
Governance
Board oversight and management incentives linked to climate goals are associated with stronger action.
How to lead on climate action
Top three actions for policymakers and regulators:
- Provide stable, long-term policy signals.
- Align disclosure requirements internationally.
- Support transition finance and infrastructure.
Top five actions for companies:
- Publish a credible transition plan.
- Integrate climate into strategy and capital allocation.
- Engage suppliers on value chain emissions.
- Link incentives to climate goals.
- Report transparently on progress and setbacks.
Previous reports
Summary
Climate leaders are building resilience and finding growth. The gap between leaders and laggards is likely to widen.
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