A report by Bloomberg Intelligence shows that only 25% of the most CO2 intensive industries have set reduction strategies that align by 2030.

The targets fail to align with either the International Energy Agency’s Sustainable Development Scenario or Net Zero by 2050 scenario, and only 40% plan to be net zero by at least 2050.

The analysis of over 270 leading global companies across the most CO2-intensive industries also found that while around 90% of these companies are reporting CO2 emissions data and 70% have set CO2 reduction targets, four out of the top five emitters – Huaneng Power, NTPC, China Petroleum & Chemical, and PetroChina – have yet to establish comprehensive carbon reduction targets.

“Our data suggests that most companies have set goals, but only 25% align with a temperature-aligned benchmark by 2030, and only 40% plan to be net zero by at least 2050. The lack of ambition across the most CO2-intensive industries indicates a risk for investors and a major hurdle in efforts to address climate change”, said Eric Kane, Director of ESG Research, Americas, at Bloomberg Intelligence.

The report forecasts and compares emissions of companies in the airlines, chemicals, marine shipping, metals & mining, oil & gas, steel and utilities industries. It shows that total emissions will fall from over 5.7 billion metric tonnes in the latest year reported to 4.3 billion in 2030, and 1.2 billion in 2050, assuming emissions levels remain constant for those that have yet to set a target.

“As the COP26 negotiations progress and carbon neutrality pledges continue to be made, our research highlights that 22 of 39 oil and gas companies have targets to be carbon neutral in their operations. Six of those 22 plan to be carbon neutral inclusive of the emissions generated from the use of their products. We expect an escalated focus on decarbonisation as firms look to differentiate themselves in their sectors,” added Eric Kane.