The Transition Pathway Initiative (TPI) has published its annual report: The State of Transition 2021, a major gauge on whether high-emitting sectors are on track to fulfil the goals of the Paris Agreement.

The data shows growing momentum behind net-zero targets, with the number of companies committing to credible net-zero targets more than doubling in one year (from 14 to 35). These are companies whose targets include the most material emissions of their company and many of which have intermediate targets for significant decarbonisation before 2050.

Assessing over 400 of the world’s biggest companies from the highest-emitting sectors on climate governance and management and 292 companies on actual and projected emissions intensity, the report finds progress with 17 per cent of companies assessed aligned with a pathway to keep temperature rises to 2C or below by 2050.

Adam Matthews, chair of TPI and chief responsible investment officer, Church of England Pensions Board said, “The decade of transition has started, and equity and debt investors can now clearly identify those companies who are serious about taking action on climate change and those that are not. These are companies with long-term climate commitments accompanied by clear milestones that don’t kick tough decisions into the long grass, and a comprehensive scope that covers all material emissions in a firm’s supply chain.”

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