Carbon budget of listed firms to run out by Oct 2026 - research

The tracker revealed "a significant gap" between the climate pledges of listed firms and their actual emissions, said Sylvain Vanston, executive director of Climate Change Investment Research at MSCI. "Public and private companies and investors must act urgently, as this report clearly shows that time is running out and we are not on track to limit global warming to 1.5 degrees," Vanston said.

The world's listed firms are set to exceed their carbon budget - the amount of carbon dioxide emissions that would limit global temperature rises to 1.5 degrees Celsius (2.7 Fahrenheit) - by as early as Oct. 2026, new research showed on Monday. The expiry date is two months sooner than a previous estimate made in October last year, even though the number of global companies making commitments to combat climate change has risen 8 percentage points to 44% over the period, investment data provider MSCI said in its latest Net-Zero Tracker.

It said only 17% of listed firms have set targets ambitious enough that align emissions with the 1.5C target set in the 2015 Paris Agreement, up 10 percentage points compared to last year. The tracker revealed "a significant gap" between the climate pledges of listed firms and their actual emissions, said Sylvain Vanston, executive director of Climate Change Investment Research at MSCI.

"Public and private companies and investors must act urgently, as this report clearly shows that time is running out and we are not on track to limit global warming to 1.5 degrees," Vanston said. Despite new pledges, public companies were expected to emit 11.2 gigatonnes of direct greenhouse gas emissions into the atmosphere this year, the same as 2022, putting them on track to warm the planet by 2.7 degrees by the end of the century, the report said.

Climate change is expected to become significantly more extreme if temperatures rise by more than 1.5C above industrial levels by the end of this century. Global mean temperatures in 2022 were 1.15C above the 1850-1900 average, according to the World Meteorological Organization.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)