Corporate Climate Ambition Triples In 18 Months

Global corporate climate ambition is accelerating, with a notable rise in the number of businesses setting science-based targets over the past year and a half. According to the latest report from the Science-Based Targets initiative (SBTi), the number of companies committing to both near-term and net-zero science-based targets grew by 227% between the end of 2023 and mid-2025. This trend shows a clear shift from short-term climate goals to long-term strategies, as companies make climate action a priority in their corporate plans.

The report highlights that the share of companies setting near-term targets almost doubled during the same period. This indicates that businesses are moving beyond minor steps and are committing to overall pathways toward achieving net-zero. Such commitments align with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C. This reflects a growing understanding that effective climate planning is not just an environmental duty; it is also essential for business.

Asia has become a major driver of this rapid growth, with a 134% increase in the number of companies having verified science-based targets. China emerged as the global leader, as the number of companies adopting these targets climbed from 137 to 450 in just 18 months, marking an unprecedented 228% increase. This growth has been paralleled by strong adoption in countries such as Thailand, Japan, Taiwan, Hong Kong, and South Korea. Many companies in these regions operate within high-emission sectors. Their commitment to setting targets is influencing both regional and global supply chains. By requiring similar commitments from their suppliers, they are enhancing climate action and extending the impact of decarbonization beyond their own operations.

The broader corporate landscape also highlights the increasing importance of climate targets. By the end of 2024, companies with verified science-based targets represented 41% of global market capitalization and accounted for a quarter of global market revenue, according to consultancy Oliver Wyman. This demonstrates how climate goals are becoming deeply integrated into financial and operational planning. It counters doubts about a supposed decline in corporate commitment to environmental aims. Rather than pulling back, businesses are steadily advancing their climate ambitions and weaving them into long-term strategies that support competitiveness in a low-carbon economy.

Sector dynamics also reveal where the most significant changes are happening. The industrial sector leads, making up nearly one-third of all companies with verified science-based targets. This leadership underscores the sector's vital role in tackling emissions from manufacturing and industrial processes. The Consumer Discretionary sector follows closely, with companies in automotive, retail, and leisure increasingly acknowledging the need to decarbonize their supply chains. The Materials sector also showed strong growth, which is especially important since it deals with raw material extraction and supply—areas that are among the most carbon-intensive globally. Together, these industries form the backbone of global supply chains and economies, so their commitments could significantly impact global decarbonization.

David Kennedy, CEO of the Science-Based Targets initiative, stressed the strong business case behind the surge in climate ambition. “Smart companies see a solid reason to manage transition risks. Incorporating climate action into business strategy helps maintain competitiveness now and in the future, while also allowing companies to take advantage of opportunities in the low-carbon economy. The message is clear: if businesses want to stay ahead, then science-based targets are the starting point,” Kennedy stated.

His comment reflects a growing agreement that setting ambitious climate targets is not just about managing reputation or meeting regulations. For many companies, it is crucial for ensuring resilience in a rapidly evolving global economy, where customer demand, investor expectations, and supply chain pressures are increasingly connected to climate performance. Companies that act early to align with science-based targets are in a better position to reduce transition risks, capture opportunities for innovation, and secure market leadership in a decarbonized future.

The SBTi report arrives amid ongoing discussions about corporate climate commitments, often overshadowed by concerns about greenwashing and the credibility of long-term pledges. By emphasizing verified targets grounded in climate science, the initiative aims to strengthen trust in corporate climate efforts and provide a clear accountability framework. The findings suggest that businesses worldwide recognize the importance of credibility, with more companies committing not just to short-term emission cuts but also to comprehensive net-zero plans.

As the low-carbon transition speeds up, the data indicates a fundamental shift in how corporations approach climate strategy. What once was the goal of a select group of leading firms is now becoming mainstream, with acceptance widening across regions and industries. The growth in Asia, notably in China, highlights the global scope of this movement. Leadership in industrials, consumer goods, and materials illustrates where immediate changes are occurring.

The rise in science-based target adoption over the last 18 months represents more than just an increase in numbers. It marks a turning point in how companies perceive their role in the global climate challenge. By integrating long-term climate goals into their strategies, businesses are preparing for the risks of a warming planet while positioning themselves to seize opportunities in the growing low-carbon economy. The data clearly shows that climate ambition is increasingly essential—it is swiftly becoming a defining aspect of corporate success.