The relentless urgency of the climate crisis has never been clearer, and the latest assessment from the Net Zero Tracker (NZT) underscores both the progress and the profound challenges faced globally in meeting net zero emissions targets. According to the 2025 Stocktake report, national commitments to net zero still cover a substantial 77% of global GDP, a significant decrease from previous years largely attributed to shifts in U.S. federal policy. Despite this, corporate net zero initiatives continue to mature and expand, illustrating a complex and evolving landscape where ambition and implementation intersect.
Net zero has become an entrenched feature of the corporate world, with a majority of the Global Forbes 2000 companies publicly committing to emissions targets. These corporations represent an impressive $36.6 trillion in revenue, accounting for 70% of the total revenue within this index. This mass corporate participation is not limited to Western economies but increasingly finds momentum across Asia, with countries such as China, India, Japan, South Korea, Taiwan, and Thailand marking noticeable rises in net zero target adoption. This geographical diversification signals a broadening of climate mitigation efforts beyond traditional powerhouses, introducing new dynamics into global climate governance.
The Stocktake delineates the drivers of this corporate momentum: clearer regulatory standards, progressive national climate policies, and companies’ realization that sustainable strategies safeguard long-term investment returns. Importantly, over two thirds of the companies with net zero pledges have substantiated their ambitions with credible plans, moving past symbolic commitments toward actionable strategies. This transition signals an industry-wide awakening to the imperative of genuine emissions reductions, though challenges in transparency and accountability persist.
John Lang, Lead of the Net Zero Tracker, poignantly highlights the devastating climate events of 2025—ranging from catastrophic wildfires in Los Angeles to severe flooding in Pakistan—as stark reminders of the stakes involved. Lang dismisses the notion of a ‘net zero recession’ as exaggerated, emphasizing that resistance to decarbonization predominantly originates from fossil fuel sectors and their financiers. Meanwhile, companies committed to net zero are increasingly moving beyond superficial pledges, focusing on tangible emission reductions as part of a necessary recalibration of global climate action.
The corporate response is mirrored by subnational governments, particularly in the United States, where despite the federal government’s withdrawal from a nationwide net zero target, states and local jurisdictions have maintained robust commitments. Nineteen U.S. states currently adhere to net zero targets, which not only cushions the domestic impact of federal policy rollback but also boosts the global share of GDP covered by net zero commitments to 83%. This decentralized approach exemplifies the critical role subnational actors play in sustaining climate momentum amid national policy vacillations.
Furthermore, U.S.-based companies have notably increased their net zero commitments by 9% over the past year, encompassing major corporations such as eBay, Merck & Co, and Goodyear. Together, these companies account for $12 trillion in global revenue, representing an overwhelming 64% of the corporate revenue assessed within the United States and the largest share globally. Notably, slightly over half of America’s largest companies now endorse net zero targets, underscoring a burgeoning corporate consensus on the strategic importance of climate responsibility.
Despite this overall positive trend, the NZT’s analysis of commitment quality reveals a sobering reality: only a small fraction of net zero targets fully meet the ‘Starting Line’ criteria established by the Race to Zero campaign. This rigorous benchmark demands comprehensive scope coverage, concrete plans, and transparent annual progress reporting. Currently, a mere 7% of corporate targets and similarly low percentages among cities and regions meet these integrity standards. The slow improvement in target robustness evidences a persistent gap between pledges and effective climate governance.
This integrity deficit is further highlighted by the revelation that nearly half of the assessed subnational governments and companies have yet to establish any emissions reduction targets. Of particular concern is the fact that 424 companies continue to operate entirely without climate goals, potentially jeopardizing their economic viability and environmental responsibilities. This lag in ambition amidst mounting climate risks raises pressing questions about accountability and the future resilience of industries resistant to transformation.
A crucial focus of the 2025 Stocktake is the increasing reliance on nature-based solutions, such as reforestation and peatland restoration, within corporate strategies. Approximately one-third of companies with net zero commitments indicate plans to utilize such natural carbon removals. However, only 4% explicitly set separate, transparent targets for removals, a practice critical for ensuring credibility and preventing overdependence on limited natural resources. The integration of nature into corporate climate strategies is complex, offering vital biodiversity co-benefits but also carrying risks if used as an alternative to deep emission cuts.
In particular, among the world’s thirty largest food and agriculture firms, there is a notable shift in strategic focus. These companies have retained their climate targets in 2025 but are evolving their approach by moving away from short-term goals toward longer-term pledges aligned with the Science Based Targets initiative’s FLAG (Forest, Land and Agriculture) guidance. While increasing reliance on land-based carbon removals aligns with an ecosystem-centric view, it must not detract from decisive decarbonization of fossil fuel emissions to meet climate imperatives effectively.
Experts contributing to the Stocktake report affirm that climate policy is increasingly intertwined with economic competitiveness in global markets. Professor Thomas Hale of Oxford University characterizes net zero as less a partisan issue than a strategic race for investment, innovation, and jobs. Meanwhile, analysts from NewClimate Institute underscore the urgency for companies to transition from mere pledges to robust implementation—time is short to capitalize on the remaining decade critical for limiting global warming to safe thresholds.
The Net Zero Tracker remains the world’s most comprehensive database cataloguing net zero commitments across nations, regions, cities, and corporations, covering over 4,000 entities worldwide. This systematic analysis not only highlights prevailing trends but also identifies the maturing nature of the net zero movement. Collectively, it presents a nuanced picture: meaningful progress is being made, particularly within the corporate sector and subnational governance, yet considerable work remains to translate commitments into tangible emission reductions.
In essence, the 2025 Stocktake report delivers both a message of hope and a stark warning. Despite broadening adherence to net zero across diverse sectors and geographies, the precarious quality of many targets and the absence of commitments in sizeable segments present significant barriers. The accelerating impacts of climate change demand intensified urgency, transparency, and accountability to transform pledges into measurable climate outcomes, ensuring a livable planet for future generations.
Subject of Research: Global net zero commitments and their effectiveness in mitigating climate change
Article Title: The Global Race to Net Zero: Progress, Pitfalls, and the Path Ahead
News Publication Date: 2025
Web References: Net Zero Tracker (NZT) reports and databases
References: UN Expert Group recommendations, Race to Zero campaign criteria, Science Based Targets initiative (SBTi) FLAG guidance
Keywords: Climate change mitigation, net zero targets, corporate sustainability, subnational climate action, nature-based solutions, climate policy
