Half of Fortune 2000 Companies Promise Net Zero Emissions but Only 4% Meet UN Guidelines: Study

Companies increasingly rely on low-quality offset credits instead of emissions reductions to meet net-zero goals, making pledges 'credibility light'.

Half of the companies listed in Fortune 2000 have committed to net-zero emissions, but only 4% meet the criteria outlined by the United Nations, according to a study by Net Zero Tracker.
The study finds that only 37% of corporate net-zero targets include all emission stages in the total value chain, leaving a significant gap in the carbon offset accounting.
Researchers warn of an over-reliance on low-quality offset credits, instead of significant reductions in emissions, contributing to 'credibility light' net-zero pledges.
A significant increase in companies setting net-zero targets was observed with a 40% rise since June 2022, however, the overall robustness of these targets is questioned due to the lack of measures for actual emissions reductions.
The world is projected to every year increase its use of fossil fuels until 2030, suggesting corporations will need to continue relying on renewable energy offsets, potentially exacerbating the credibility issue of current net-zero pledges.