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Climate target credibility on the rise – but transition gaps remain

"Awareness of what constitutes credible corporate climate action is growing among companies and standard setters."
Melodie Michel
Climate target credibility on the rise – but transition gaps remain
Photo by Mick Haupt on Unsplash

The corporate world is increasingly aware of what constitutes a credible climate strategy – but few companies have achieved a high level of climate target integrity.

This is according to the 2025 Corporate Climate Responsibility Monitor (CCRM), published today (July 10) by NewClimate Institute. Of the 55 global companies assessed, none has achieved a ‘high integrity’ or ‘reasonable integrity’ ranking. 

But some frontrunners, including H&M, Inditex and Stellantis, are standing out for their transparency around climate goals, as well as early progress on robust strategies and piloting high-integrity approaches.

"While awareness of what constitutes credible corporate climate action is growing among companies and standard setters, even the most ambitious companies often fail to align their business models with the speed and scale needed to meet the Paris Agreement’s 1.5°C goal,” commented Frederic Hans, NewClimate Institute.

Issues around transparency and target validation

This year’s report highlights several issues blocking integrity improvements when it comes to climate targets. First, incomplete emissions disclosure, sector-specific accounting malpractices and data limitations continue to undermine transparency, making it difficult to assess what targets really mean and how companies progress to achieve them.

Second, standard setters often validate climate strategies and targets without addressing persistent structural shortcomings, such as inconsistent metrics and accounting approaches.

The study also identifies transition-specific alignment targets as essential to complement GHG targets and accelerate near-term emissions reductions. “These metrics directly reflect companies’ key transitions to decarbonise their business models and should become a cornerstone of credible corporate climate strategies,” says the NGO.

Examples of these transition-specific alignment targets include Stellantis and General Motors’ targets for electric vehicle sales, Google and Microsoft’s 24/7 carbon-free energy strategies, H&M’s commitment to 100% renewable electricity across its supplier base by 2030, and Danone’s target to reduce methane emissions in fresh milk production.

Assessing individual sectors

This year, the report also dives into four specific sectors to highlight issues and best practices around climate strategies. In the food and agriculture sector, the CCRM finds that while some companies have taken initial steps with targets around methane reduction and deforestation, efforts overall “fall short on supporting the key transitions needed for sectoral decarbonisation”. 

The top-rated company in this sector is Danone with a ‘moderate integrity’ strategy – while JBS is deemed ‘very low integrity’.

In the tech sector, the CCRM finds that the climate strategies of Amazon, Apple, Google, Meta and Microsoft fall short of demonstrating “credible leadership”, with outdated emissions accounting methods and surging energy demand undermining the meaning of GHG targets. 

But the report also recognises efforts by Google and Microsoft to implement hourly renewable energy matching or Apple’s approach to renewable energy in the supply chain as “early signs of leadership”.

A similar conclusion comes out of the analysis of the fashion and automotive sectors, with targets and strategies that are deemed insufficiently credible.