Corporate regulators worldwide now mandate that companies proactively assess, disclose, and manage the key climate risks they face as the world rapidly transitions towards a net-zero emissions future.

Beyond this regulatory expectation, companies face increased pressure from customers, suppliers, bankers, and insurers to not only inform the market of their climate risks but also to set emissions reduction targets and transition away from both direct emissions and exposure to high-emitting customers and suppliers within their value chain.

With this unprecedented momentum in both the public and private sectors, companies will face significant business and liability risks as they navigate the dynamic and continually evolving regulatory, market, and community expectations regarding climate change – particularly when setting their own emissions reduction goals and implementing climate transition plans and targets.

Achieving net-zero carbon emissions is a formidable challenge that requires coordinated action from governments, businesses, and individuals worldwide. This goal necessitates substantial changes to current industry structures and practices, as well as the adoption of new technologies and business models.

A study of Fortune 500 companies’ greenhouse gas emissions reveals significant inconsistencies and underreporting in emissions inventories. Given that these companies account for approximately 27% of global emissions, addressing global climate change hinges on our ability to accurately measure and report the carbon footprints of large enterprises.