Are investors right to worry about waning corporate climate commitments?

THE Paris Climate Agreement, signed in 2015, marked a turning point in global climate policy, urging nations and businesses to take more aggressive actions to combat climate change. The agreement set the stage for heightened corporate engagement in climate action, leading to a surge in climate commitments from companies worldwide.

Following the Paris Agreement, the Science-Based Targets initiative (SBTi) emerged as a framework for companies to set targets aligned with the latest climate science. By providing clear guidelines for emissions reductions, the SBTi encouraged companies to commit to ambitious climate goals.

As at late 2023, more than 2,000 companies had signed up to the SBTi, reflecting a broad and growing corporate commitment to addressing climate change.