Corporate climate commitments among the world’s largest companies have tripled since 2019, with nearly three-quarters of Fortune Global 500 (FG500) companies now holding at least one sustainability target, according to new research.
Company managers expanding their climate commitments while integrating carbon credits into their sustainability plans. AI generated picture.
UK-based carbon removal fund Climate Impact Partners (CIP) published its seventh annual analysis of FG500 climate strategies last week, describing the scale of change as ‘a landmark shift in corporate climate ambition’. More than half of all FG500 companies (51%) now hold a net-zero target—up from just 8% in 2020. CIP said the growth ‘shows companies aligning around a common long-term goal, upgrading their ambitions and creating consistency across markets and sectors.’
Read more: SBTi launches new corporate net-zero standard
Almost half of FG500 companies (44%) plan to incorporate carbon credits into their environmental strategies. ‘This reflects a growing recognition that high-quality carbon credits play an essential role in addressing hard-to-abate emissions, including managing Scope 3 complexity, and enabling meaningful climate impact alongside direct emissions reductions’, CIP said. Adoption intent rises to 57% among companies with the ‘full stack’ of Science Based Targets initiative (SBTi) near-term targets and RE100 renewable electricity commitments alongside net-zero targets. Companies holding a net-zero target are 11 times more likely to use carbon credits.
Corporate Climate Commitments Have Tripled Since 2019, source Climate Impact Partners.
Europe leads on carbon credit adoption across the FG500, with 82 companies planning to incorporate credits into their strategies. North America and Asia remained flat in 2024, following a surge in adoption between 2023 and 2024. Europe and North America combined account for 64.9% of all FG500 companies with a climate commitment, Europe being the largest contributor.
North America is also gaining momentum: 54% of its FG500 cohort now operate under a net-zero framework. CIP noted that ‘despite political headwinds, companies in the US are strengthening their climate ambitions and companies in Europe are leading the push for climate action’. SBTi near-term targets and net zero together account for 75% of all commitments across both regions.
Read more: The real cost of 1 tonne of CO2: Translating carbon into hectares
The FG500 comprises the world’s largest companies by revenue, spanning technology, automotive, financial services, and energy, collectively representing more than one-third of global GDP. The data signals growing corporate recognition that carbon credits play a central role in sustainability strategies alongside direct emissions reductions.
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