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Climate Action

The MSCI Net-Zero Tracker

The COP26 conference last November produced a wealth of commitments from investors and other capital markets participants to cut emissions in line with global temperature goals and make climate change part of every investment decision. The months since then have underscored the imperative of following through.

  • 05 August 2022
  • MSCI

The COP26 conference last November produced a wealth of commitments from investors and other capital markets participants to cut emissions in line with global temperature goals and make climate change part of every investment decision. The months since then have underscored the imperative of following through.

To implement their commitments, investors expect companies to set net-zero targets that are grounded in climate science and make reducing emissions as rapidly as possible the priority.

Reaching net-zero will demand the largest transformation of society since the Industrial Revolution in less than half the time. To compound the challenge, companies and investors also need to navigate the scramble for energy sparked by the Russia-Ukraine war and its potential to distract from the risk of delaying the transition away from fossil fuels.

The MSCI Net-Zero Tracker from MSCI ESG Research looks at the climate impact of listed companies based on their projected emissions and counts down the time remaining to reach net-zero.¹ It shows the companies with the largest carbon footprints, shines a light on corporate leaders and laggards in climate disclosure, and highlights companies whose climate targets are notable for their alignment with global goals.

The Net-Zero Tracker offers an objective gauge of companies’ progress toward an economy that removes as much greenhouse gas from the atmosphere as it puts in. It also underscores both the outsize importance of turning climate commitments into action and the value of disclosure to enable investors to identify companies in every sector that are taking concrete steps to reduce their reliance on fossil fuels and reimagine their businesses for a net-zero world.

Access the tracker here.