Earth Day: Private Firms Failing in the Race to Net-Zero, Finds Report

As per a new report by the group Net Zero Tracker, 60 of the world’s 100 largest private firms are falling behind their public counterparts in committing to net-zero carbon emissions.

As per the report, for the world to meet the 2015 Paris Agreement to limit global warming 1.5 degree Celsius, all companies need to reduce their planet-heating emissions.

Only 40% of the top 100 private firms have set net-zero targets, compared to 70% of publicly-listed companies. Just 8% of these private firms have detailed plans on how they intend to achieve their targets.

As per John Lange of Net Zero Tracker, private firms face fewer market and reputational pressures compared to public companies, making them less inclined to set ambitious climate commitments.

Only two private firms, Ikea and Bechtel, have ruled out using carbon credits to achieve their net-zero goals. Carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases by directing money toward a project that reduces or avoids emissions.