Stakeholders and consumers are increasing pressure on companies to reduce their environmental impact and take meaningful climate action. Some of the world’s largest and most profitable corporations are working to meet climate targets, but despite their efforts, emissions remain significant. This analysis examines the efforts made by the 208 largest companies in the Forbes Global 2000 ranking with publicly available data to reduce their emissions.
First, we explore the level of commitment from these companies to the Science-Based Targets initiative (SBTi), a global framework that helps companies set ambitious, science-driven climate goals. The SBTi has become a key benchmark for companies pursuing voluntary, credible, and measurable actions to reduce emissions.
Secondly, we analyse the scope of emissions data coverage in terms of public reporting.
Thirdly, we assess the engagement of companies in the voluntary carbon market (VCM), focusing on those that have retired carbon credits.
Lastly, we examine the involvement of companies in the carbon removals market, focusing on those that have publicly committed to investing in carbon dioxide removal (CDR).
The 2023 Forbes Global 2000 list ranks the largest companies globally by sales, profits, assets, and market value. Robert Höglund of Marginal Carbon compiled emissions data for the top 250 companies on this list. Notably, only 208 of these corporate giants report their Scope 1 and 2 emissions for 2022, highlighting a significant transparency gap. This analysis focuses on these 208 companies with publicly available information for the year 2022.
Data from Höglund’s publicly available profit and emissions database reveals that these 208 companies emit billions of tonnes of CO2 annually. In 2022, they collectively produced over 12.7 billion tonnes of CO2, accounting for 34% of global emissions (IEA), with an overwhelming 91% coming from Scope 3 sources.
The Science-Based Targets initiative (SBTi) was established to help companies set emission reduction targets in line with climate sciences and Paris Agreement goals, and it is recognised for setting the highest bar for net zero goals. Since 2015, almost 10,000 companies have joined the initiative to set a climate target, with 6,194 companies having an approved target set.
The SBTi offers companies a structured and scientifically credible pathway to reduce emissions. With near-term targets (Textbox 1) providing the foundation for significant emission reductions by 2030, companies are encouraged to adopt ambitious net-zero targets. Although the initiative is voluntary, it is one of the few frameworks companies can use to demonstrate alignment with global climate goals.
| Near-term targets outline the amount by which organisations will reduce their emissions, usually over the next 5 to 10 years period. This target helped galvanise the action required for significant emission reductions to be achieved by 2030. Near-term targets are also a requirement for companies wishing to set a net zero target. |
| Net-zero targets indicate the degree of emission reductions organisations need to achieve across all emission scopes to align with net zero no later than 2050 (or 2040 for the power sector). |
Out of the 208 largest companies globally with publicly available data, 80 (38%) have set near-term emission reduction targets under the SBTi, while an additional 23 (11%) are committed to doing so. However, 5 companies (2%) had their commitment removed for failing to present their targets within the required deadline. Meanwhile, 100 companies (48%) still do not commit to the SBTi. Figure 1 illustrates these figures.
The sectors with the highest number of companies with a near-term target set are healthcare & pharmaceuticals, technology hardware & equipment, and consumer goods & retail. The sectors with the highest number of companies committed to setting a target are insurance and automotive. Notably concerning is that high-emission sectors, such as oil and gas and mining, are among those with the fewest companies making any type of commitment.
Banking is also among the sectors with few companies making commitments. However, unlike the oil and gas sector, where emissions are concentrated in Scope 1 and 2, most of the banking sector’s emissions are in Scope 3, due to their investment portfolios.
Among the same 208 companies, 23 (11%) have set targets to achieve net-zero under the SBTi, 29 (14%) are committed to net-zero, 9 (4%) had their commitment removed, and 147 (71%) have no net-zero commitment. Figure 2 illustrates these figures.
Among the companies that have had their net-zero commitment removed are Johnson & Johnson, Microsoft, Netflix, Pfizer, P&G, Unilever, and Walmart.
Until recently, the SBTi held a firm stance against using carbon credits towards emission reductions. However, in a recent statement, the SBTi acknowledged the potential of environmental attribute certificates, including carbon credits, as a tool to address climate change—provided they are supported by scientific evidence and robust policies. The current Corporate Net-Zero Standard (CNZS) is under revision aiming to refine the approach to neutralisation and clarify near-term actions for addressing residual emissions. See our analysis here.
For the companies whose emissions data could be collected, we found that Scope 1 emissions were equivalent to 1.5 billion tCO2e, with the oil & gas sector responsible for more than half of this amount. In this ranking, 20 oil & gas companies are included, such as PetroChina, ExxonMobil, Saudi Aramco, Chevron, and Shell. Other sectors that stand out for their high Scope 1 emissions include utilities (18%) and mining & materials (15%).
Scope 2 emissions totalled 381 million tCO2e. The oil & gas sector remains the largest contributor, accounting for 32% of these emissions. However, in second place comes media & telecommunication services contributing 15%, followed by technology & hardware, with 9%.
Scope 3 was found to be 11.6 billion tCO2e, with the oil & gas sector once again responsible for nearly half (49%) of these emissions, followed by the automotive sector (15%) and technology hardware & equipment (12%). Figure 3 illustrates these figures.
An analysis of both the commitments to the SBTi and the emissions shows that companies with near-term targets set account for 25% of the total Scope 1 and 2 emissions of the most profitable companies’ total emissions, while companies committed to set a near-term target account for only 2%. About 71% of the emissions are not associated with any commitment.
Among the companies committed to net-zero
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