New research in MSCI’s Q4 Transition Climate Tracker sheds light on how companies are setting goals, disclosing emissions, and meeting their targets. Some of these trends are positive, others are troubling. Findings point to more companies recognizing the need for carbon reduction goals and data, with companies meeting those goals. To start with, good news, SBTi-approved targets are at an all-time high:
“Nearly one-fifth (19%) of listed companies had a climate target validated by the SBTi as of Dec. 31, 2025, up from 14% a year earlier. Many investors view SBTi-approved targets as a mark of credibility because the initiative assesses whether targets align with climate science.”
Additionally, more companies are disclosing their Scope 1 and Scope 2 emissions than ever before:
“An estimated 79% of listed companies disclosed their Scope 1 and/or Scope 2 emissions as of Dec. 31, 2024, up from 76% a year earlier. We estimate emissions for 2024 because companies vary in the dates of their sustainability disclosures and additional quality checks are ongoing.”
Unfortunately, for all the target setting and disclosures that are happening, companies are failing to make meaningful emissions reductions:
“Twelve percent of listed companies aligned with projected warming of 1.5°C (2.7°F) or less, while an additional 26% aligned with warming between 1.5°C and 2°C (3.6°F). Almost two-thirds (62%) of listed companies are on an emissions trajectory that would breach the 2°C threshold, including 26% of companies whose trajectories would exceed 3.2°C (5.8°F)”
For years now, the mantra has been “what gets measured gets managed.” We’re seeing more measurement than we ever have before. However, management is failing to materialize.
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