Breaking Down Corporate Net-Zero Climate Targets

An increasing number of companies are setting “net-zero” climate targets. In this guide, we offer an analytical framework to assess companies’ decarbonization targets, including net-zero targets. The framework is intended to help institutional investors answer questions such as: What percentage of total emissions do the company’s targets aim to reduce? How quickly does the company intend to achieve its emissions reductions? How much confidence can one have that a target will be met, given the target’s key characteristics and what we know about the company’s track record and strategy for meeting climate targets?