As COP26 approaches, momentum to set net-zero emissions targets among large corporations is growing, thanks to initiatives such as the UN Race to Zero Campaign, The Climate Pledge, Business Ambition for 1.5°C, and the Glasgow Financial Alliance for Net Zero. Over 350 of the 2,000 largest listed companies in the world have now announced net-zero targets, covering around a third of total revenues.
However, net-zero ambition varies significantly across sectors. Among the largest listed companies, the Consumer Goods sector has the largest share of revenues – 44% – covered by net-zero targets, which is twice the proportion of Industrial and Materials companies. However, it is in high-emitting, hard to decarbonize sectors such as Industrials & Materials that more ambition is most needed. For example, analysis of European corporates by Oliver Wyman and CDP revealed that the Industrials & Materials sector was responsible for 35% of Scope 1 and 2 emissions, but only 5% of low-carbon investments in 2019.