More than 40% of global market capitalisation is now covered by science-based targets

The number of companies setting near and long-term science-based targets for GHG reduction has grown exponentially over the past 18 months – these now represent 41% of global market capitalisation.

There are now more 8,200 companies with climate targets validated by the Science Based Targets Initiative (SBTi) – 11,000 when including those that have committed to setting the targets but have not received validation yet.

The number of firms with near-term science-based targets grew by 97% between the end of 2023 and the first half of 2025, while those setting both near-term and long-term net zero targets (1,900) increased by 227%.

More and more companies are choosing to set both net zero and interim targets: their proportion went from 17% of the total SBTi-validated group at the end of 2023 to 38% today. This suggests that climate transition plans detailing the pathway to net zero are also gaining ground.

David Kennedy, SBTi CEO, said: “Smart companies continue to see a strong business case to manage transition risk. Building climate action into commercial strategy helps maintain competitiveness now and in the future and allows companies to capitalise on opportunities in the low-carbon economy. That forward-thinking approach has been playing out in the surge in science-based target setting over the past 18 months. The message is clear: if businesses want to be ahead of the curve, then science-based targets are where businesses start.”

Asia driving growth in climate targets

SBTi identifies Asia as a key driver for this growth, with a 134% increase in validated companies over the 18-month period. In China alone, this growth rate reached 228%, with 450 companies now validated, compared to 137 at the end of 2023.

“Businesses in these territories – many of which play a central role in global value chains and carry high scope 3 emissions – are not only setting targets themselves, but actively encouraging suppliers and partners to follow suit. As a result, Asia is becoming a powerful amplifier of climate ambition, catalysing a broader wave of science-based target-setting across supply chains and sectors,” SBTi added.

When it comes to sectors, industrials (defined as manufacturers and distributors of capital goods), consumer discretionary (encompassing automotive, household durable goods, and textiles and apparel producers) and materials take the top three spots for the number of firms with validated science-based targets.

The SBTi Trend Tracker is the first in a new approach to exploring SBTi data insights as part of the organisation’s updated priorities.

Read also: Climate targets are curbing emissions growth – but not fast enough