84% of S&P 500 firms have climate targets but most fail to cut emissions

2 min read Updated on 15 Jul 2026, 09:52 PM

Reviewed by

Shriram SScanX News Team

AI Summary

A report by The Conference Board and ESGAUGE found that 84% of S&P 500 companies have set climate targets, but most are failing to reduce emissions. 58% of firms with Scope 1 targets and 62% with Scope 3 targets report flat or rising emissions since 2021. Financial constraints, particularly cost and capital allocation, are the primary reasons for potential delays, with only 24% of executives fully confident in meeting their goals.

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A report by The Conference Board and ESGAUGE indicates that while 84% of S&P 500 companies disclosed climate targets in 2025, a majority are struggling to reduce their greenhouse gas emissions. The findings highlight a significant gap between corporate climate ambition and actual emission reductions, with financial constraints emerging as the primary barrier to progress.

The report analyzes S&P 500 and Russell 3000 public company disclosures from the 2021 to 2025 reporting years, alongside a poll of over 50 sustainability executives from large multinational US companies conducted in January 2026. It reveals that 68% of companies have emissions-reduction targets and 53% have net-zero targets. However, execution remains a challenge, particularly for direct and indirect emissions.

Emission Reduction Progress

Most companies with Scope 1 targets, covering emissions from their own operations, have not meaningfully reduced emissions since 2021. Specifically, 58% of companies with Scope 1 targets report flat or rising emissions. The situation is more pronounced for Scope 3 emissions, which include suppliers, transportation, and product use, where 62% of companies with targets report flat or rising emissions.

Emission Scope	Definition	% with Flat or Rising Emissions
Scope 1	Direct emissions from company operations	58%
Scope 2	Indirect emissions from purchased electricity	40%
Scope 3	Indirect emissions across the value chain	62%

Scope 2 emissions, which are indirect emissions from purchased electricity, heating, and cooling, represent an exception. Only 40% of companies with Scope 2 targets report flat or rising emissions, indicating better progress in this area compared to Scope 1 and Scope 3.

Executive Confidence and Barriers

The report finds that executive confidence in achieving these targets is low. Only 24% of polled sustainability executives say they are fully confident their companies will achieve their goals across most emissions categories. In contrast, 59% report mixed or low confidence.

Financial concerns are the leading source of this uncertainty. Most executives (55%) cite cost, capital allocation, or ROI as the top reason their companies may delay or adjust climate targets. Other significant concerns include evolving regulatory requirements (45%) and technological readiness (37%).

"Many corporate climate targets are entering a more difficult phase. As 2030 moves from a long-term milestone to a near-term deadline, companies may need more capital, clearer execution plans, or recalibration—but recalibration isn't automatically a rollback," said Andrew Jones, author of the report and Principal Researcher at The Conference Board.

Brian Campbell, Leader of The Conference Board Governance & Sustainability Center, noted that climate investments are increasingly competing with AI, infrastructure, and other business-critical initiatives for capital. "The challenge for many companies isn't a lack of climate ambition, but competing priorities," he said.