Moody’s ESG announced today the launch of Temperature Alignment Data, a new solution aimed at enabling investors and companies to assess the alignment of company climate targets and progress with global net zero goals.

At launch, the new dataset 4,400 of the largest companies globally, with coverage expected to be expanded over time.

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Along with the launch of the new solution, Moody’s ESG published a report highlighting some of the key findings from the temperature alignment dataset. According to the report, of the 4,400 companies examined, 42% have set some form of emissions targets, but only 17% reference net zero. The findings indicate that current corporate goals fall far short of alignment to a 1.5°C temperature rise, with only 3% of companies with targets aligned with this benchmark, and the overall average implied temperature rise among assessed companies is 2.9°C.

By sector, the report found that electric and gas utilities have the best alignment levels, currently at 1.5°C, while the oil and gas sector lags far behind, with only 6% of companies with targets that encompass scope 3 emissions, which represent the vast majority of the sector’s footprint.

Andrew Grant, Vice President – Climate Solutions in Moody’s ESG Solutions Group, said:

“Rising concern about the effects of climate change has increased pressure on investors, companies, and governments to contribute to the energy transition and demonstrate measurable action toward achieving emissions targets. Moody’s ESG Solutions’ Temperature Alignment Data provides greater transparency on whether companies’ net zero commitments are in line with what’s required to keep warming below 1.5°C, highlighting that there is critical need for increased ambition.”

Click here to view the Moody’s ESG report.