Don't take corporate net zero pledges at face value

Very few companies on track to meet targets

The COP26 climate summit underscored the role of the private sector in combatting climate change.

On the surface, corporates seem mobilised. Even the airlines and energy majors have publicly committed to achieving ‘net zero' carbon emissions. Climate-focused investors should not take these pledges at face value. Distant timelines, reliance on unproven carbon removal technologies, and an emphasis on the ‘net' side of the equation are all means of getting a public relations boost while avoiding the difficult work of significant emissions reduction. Morningstar EU climate benchmarks can be used by investors to identify the shares of companies across the globe with credible net zer...