The seventh edition of the EY Global Climate Action Barometer examines climate action among 857 companies across 50 countries and 13 sectors, focusing on a subset of companies that scored highly in last year’s Barometer study.
Despite growing urgency, corporate progress remains inconsistent. Nearly two-thirds (65%) of companies with net-zero targets lack actionable transition plans, undermining long-term climate goals. Target integrity is also a concern: roughly one-third (34%) of company targets were restated between CDP 2023 and CDP 2024, with 44% weakened through reduced ambition or delayed timelines. Nearly two-fifths (39%) of restated targets deviate from a linear reduction trajectory, signalling gaps in planning and execution.
There are positive developments, however. Almost four out of five companies (78%) have adopted decarbonization levers across all three Scopes, with 96% implementing measures for Scopes 1 and 2. Energy efficiency is the most common lever (75%), while supplier engagement—critical for Scope 3 emissions, which account for 70–90% of a company’s footprint—is cited by 60%. Climate governance is strengthening: 80% of companies link environmental metrics to executive incentives, and those with long-term incentive plans outperform peers on climate goals. Internal carbon pricing is also gaining traction, with 54% of companies integrating it into business strategies.
EY calls for urgent action: embed climate goals into corporate strategy, disclose robust transition plans, reduce reliance on offsets, and conduct quantitative risk assessments. Policymakers should mandate transition plan disclosures, establish consistent regulatory frameworks, and incentivize ambitious action to accelerate progress toward Paris-aligned targets.