Listed companies breaching net-zero emissions budgets
The latest MSCI Net-Zero Tracker has been published on 31 October, 2022. The tracker, which is a quarly analysis of 9,300 public companies’ climate change progress based on the MSCI All Country World Investable Market Index (ACWI IMI), warns that companies look set to overshoot a collective carbon budget. The research found that listed companies look set to emit almost 11 gigatons of direct emissions this year. This, MSCI warns, is a 1% increase compared to 2021 levels, but is still 4.4% lower compared to pre-pandemic levels. However, the overall message is bleak, listed companies are on track to make the world 2.9C warmer by the end of the century, significantly missing the Paris Agreement targets. MSCI’s executive director of climate change investment research Sylvain Vanston said: “The MSCI Net-Zero Tracker shows that 1.5C waits for no one and our analysis reveals that not all targets are equal. With major inconsistencies across all sectors and regions, investors are presented with a major challenge at a crucial point where transparency of data is critical.