Although more companies are setting climate targets, most of them lack Paris Agreement compatible decarbonisation plans; they also lack detailed and quantified action plans to reduce emissions (ClimateAction100+, Net Zero Company Benchmark 2023).
Without a technically feasible decarbonisation plan, companies are at significant risk of missing climate targets and facing increased exposition to regulatory, legal, market, and reputational transition risks. Furthermore, the disclosure of transition plans is no longer a voluntary exercise, which will enable large organisations to demand detailed and quantified emission mitigation plans from their supply chains.
