Report Finds World’s Largest Private Firms Have Not Established Climate Targets

The world’s largest private firms are falling behind in setting climate targets, with only 40 out of the top 100 private companies committing to net-zero carbon emissions, a new report revealed on Monday. This stark contrast with publicly-listed companies highlights the urgent need for all businesses to reduce their planet-heating emissions to meet the goals of the 2015 Paris Agreement.

According to the report by Net Zero Tracker, the lack of market pressures, reputational risks, and regulatory oversight are the main reasons behind the slow progress of private firms in addressing climate change. However, the tide may be turning as more companies are starting to recognize the importance of sustainability.

The report compared 200 of the world’s largest public and private companies and found that only 40 private firms had set net-zero targets, with just eight of them having detailed plans on how to achieve them. This lack of concrete action has been criticized as mere PR stunts by the report.

Interestingly, only two firms, Ikea and Bechtel, have ruled out using controversial carbon credits to reach their net-zero goals. Carbon credits have been a subject of debate as they allow companies to offset their emissions by investing in emission-reducing projects, but critics argue that they enable continued pollution.

With new regulations on the horizon in various jurisdictions, including the EU, the pressure is mounting on private firms to step up their climate efforts. The enforcement of these regulations will have far-reaching effects, not only within the EU but also on companies operating globally.

As the largest private firms account for a significant portion of the global economy, any changes they make to reduce emissions will have a ripple effect across industries. The time for action is now, and private firms can no longer afford to ignore their climate responsibilities.