Better understanding of corporate net-zero commitments and use of carbon credits will help reduce investors’ overall climate risk, Ceres said, while weak commitments or intentions put both companies and investors at risk.
It also urges companies to prioritize decarbonizing their value chain emissions, which are emissions associated with the other entities a with which a company interacts.
According to February data from the Net Zero Tracker, 34% of the world’s 2,000 largest publicly traded companies have made net-zero commitments.
That makes the integrity of corporate net-zero commitments critical, said Carolyn Ching, senior manager of food and forests at Ceres and lead author of the guide.