A new report has found that nearly three-quarters of the world’s largest companies by revenue now hold at least one climate commitment—a figure three times higher than in 2019—with a growing majority setting net-zero targets and planning to incorporate carbon credits into their strategies.
Net-zero targets have seen rapid adoption, now held by 51% of Fortune Global 500 (FG500) companies compared with just 8% in 2020. The data comes from the seventh annual analysis of FG500 climate strategies published by Climate Impact Partners (CIP), a UK-based carbon removal fund. CIP said the growth ‘shows companies aligning around a common long-term goal, upgrading their ambitions and creating consistency across markets and sectors.’
The report highlights a significant shift in how the world’s largest companies approach carbon credits. 44% of FG500 companies plan to use them as part of their environmental strategies. The figure climbs to 57% among companies with the full combination of Science Based Targets initiative (SBTi) near-term targets, RE100 renewable electricity commitments, and net-zero frameworks. CIP attributed the trend to ‘a growing recognition that high-quality carbon credits play an essential role in addressing hard-to-abate emissions, including managing Scope 3 complexity, and enabling meaningful climate impact alongside direct emissions reductions’. Companies with a net-zero target are 11 times more likely to use carbon credits than those without one.
The geographical distribution of carbon credit adoption is uneven. Europe holds the strongest position, with 82 FG500 companies planning to use carbon credits, a reflection of long-standing market development in the region. North America and Asia saw no growth in 2024 after a surge across 2023 and 2024. Combined, Europe and North America account for 64.9% of all FG500 companies with climate commitments.
54% of North American FG500 companies now operate under a net-zero framework. CIP described the trend as evidence that ‘despite political headwinds, companies in the US are strengthening their climate ambitions and companies in Europe are leading the push for climate action’. Together, SBTi near-term targets and net zero account for 75% of all commitments across both regions. The FG500 spans the world’s largest companies by revenue across technology, automotive, financial services, energy, and other sectors, collectively representing more than one-third of global GDP.