Moody’s ESG Solutions has launched Temperature Alignment Data, a product that assesses how companies’ emissions targets align with net zero.

Temperature Alignment Data covers 4400 companies globally and can used to quantify and monitor corporate emissions targets and the temperature alignment of their portfolios, while companies can benchmark their emissions targets against peer targets and market expectations.

Findings from the new dataset include:

• While 42% of the 4,400 covered companies have set emissions targets, only 3% of the 4,400 have targets aligned with achieving 1.5°C by 2050.
• The average implied temperature rise among assessed companies is 2.9°C.
• Sector results vary widely, but every individual sector covered has an implied increase of above 2°C and fails to rise to the ambitions of the Paris agreement.

The data includes Carbon Footprint Data, which captures or models scope 1, 2 and 3 emissions; Brown Share/Green Share Data, which assesses corporations’ exposure to fossil fuels; and Climate Controversies Data, which captures entities’ known or reported controversies related to climate change and GHG emissions.

“Rising concern about the effects of climate change has increased pressure on investors, companies, and governments to contribute to the energy transition and demonstrate measurable action toward achieving emissions targets,” said Andrew Grant, Vice President – Climate Solutions in Moody’s ESG Solutions Group. “Moody’s ESG Solutions’ Temperature Alignment Data provides greater transparency on whether companies’ net zero commitments are in line with what’s required to keep warming below 1.5°C, highlighting that there is critical need for increased ambition.”