Public companies globally are making strides in disclosing their greenhouse gas emissions, with approximately 60% reporting direct Scope 1 and 2 emissions and over 40% disclosing some Scope 3 emissions, reveals the latest MSCI Net-Zero Tracker. This report assesses the climate progress of companies in the MSCI All Country World Investable Market Index using MSCI’s “”Implied Temperature Rise”” metric. It highlights significant advances in emissions reporting and target setting, with an increase in science-backed decarbonization goals. However, there’s a marked disparity in climate reporting practices between U.S. companies and their global peers; only 45% of U.S. public companies report on Scope 1 and 2 emissions, compared to 73% in other developed markets, and 29% report on Scope 3 emissions, versus 54% abroad. Despite these disclosures, the pace of setting climate targets has slowed, but the quality has improved, indicating a deliberate shift towards more substantial, science-aligned commitments.
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