Credible climate transition plans: Insights from an AI-driven analysis of corporate disclosures
Only 40% of companies disclose their decarbonization measures and quantify their contribution to emission targets
Investors are increasingly focused on analyzing corporate climate transition plans due to their expected impact on long-term financial performance and sustainability. As the world grapples with climate change, companies’ strategies for managing carbon emissions, adapting to regulatory changes, and transitioning to a low-carbon economy are becoming crucial indicators of resilience and competitiveness. Clarity AI has used a Large Language Model (LLM) to examine the credibility of climate transition plans for several hundred high-impact companies regarding their reported decarbonization measures, as well as their use of carbon credits and Carbon Capture and Storage (CCS) to achieve emission targets.
Our findings reveal that globally, only 40% of companies disclose their decarbonization measures and quantify their contribution to emission targets. Notably, European and Japanese companies quantify their measures more frequently than companies elsewhere.
Moreover, the controversial use of carbon credits and negative emission technologies to achieve emission targets is not widespread among many high-emitting companies. However, significant sectoral differences exist, which may interest investors assessing credible climate transition plans.
Download the whitepaper to:
Gain insights into current challenges in assessing climate transition plans
Explore corporate decarbonization measures and the need for quantification
Understand the use of carbon credits and negative emissions technologies
