Tracking Emissions: Corporate Concentration and Climate Progress
The world’s public companies are responsible for nearly one-fifth of global greenhouse gas (GHG) emissions, but some companies emit far more than others. Notably, just 1% of companies are responsible for 55% of all public company GHG emissions. Nearly all of the heaviest polluters are in the energy, utilities, and materials sectors.
This graphic, in collaboration with the MSCI Sustainability Institute, takes a closer look at the progress companies are making and the warming that could occur on current trajectories.
Are Companies Taking Steps to Reduce Their Emissions?
Among the heaviest emitters, the materials sector leads on targets, but only 9% of companies have them.
The below data shows the share of targets approved by the Science-Based Targets Initiative (SBTi) for each sector. SBTi-approved targets ensure that the target is consistent with the aim of limiting warming to 1.5℃.
| Sector | Share of Companies With SBTi-approved Targets |
|---|---|
| Industrials | 22% |
| Consumer Discretionary | 16% |
| Information Technology | 14% |
| Consumer Staples | 9% |
| Materials | 9% |
| Real Estate | 8% |
| Health Care | 7% |
| Financials | 6% |
| Communication Services | 6% |
| Utilities | 3% |
| Energy | 0% |
Source: MSCI ESG Research. Data as of March 31, 2025. The absence of energy companies reflects the fact that SBTi does not currently validate targets from oil and gas companies.
While some targets are in place, most companies are on track to cause warming that exceeds 1.5℃.
Where Are Current Corporate Commitments Leading Us?
In fact, only 12% of companies are set to keep below 1.5℃ warming. Below, we show the projected warming of the world’s listed companies measured with implied temperature rise.
Implied temperature rise indicates the warming above pre-industrial levels that would occur if the whole economy had the same carbon budget overshoot or undershoot as the company in question.
| Implied Temperature Rise Band | Percentage of Listed Companies Globally |
|---|---|
| <=1.5℃ | 11% |
| >1.5℃ <=2℃ | 27% |
| >2℃ <=3.2℃ | 38% |
| >3.2℃ | 24% |
Source: MSCI Sustainability Institute. Data as of March 31, 2025 and not index weighted. Numbers may not sum to 100 due to rounding. The Paris Agreement aims to limit global warming to well below 2℃ (3.6°F) from pre-industrial times.
On their current trajectory, companies will use up their remaining emissions budget in 2 years and 8 months to limit warming to 1.5℃. The timeline extends to 8 years and 11 months for limiting warming to 2℃.
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