Less than 40% of listed companies globally currently have emissions trajectories aligned with the global climate goal of limiting temperature increase to under 2°C above preindustrial levels this century, although companies have continued to set climate targets over the past year, including a significant increase in companies with SBTi-approved emissions reduction goals, according to a new study released by investment data and research provider MSCI.

For the report, the latest edition of the MSCI Transition Finance Tracker, MSCI assessed the emissions trajectories and climate progress of companies within the MSCI All Country World Investable Market Index (ACWI IMI), and included data from its “Implied Temperature Rise” metric, used to assess the alignment of investment portfolios with global climate goals.

The report found that 38% of companies currently have emissions trajectories aligned with projected warming of 2°C or less, with only 12% of companies aligned with the more ambitious goal of limiting warming to 1.5°C or less.

By contrast, nearly two-thirds (62%) of companies are on course to align with a trajectory that would exceed the 2°C, according to MSCI, with 26% of companies aligned with a temperature increase of more than 3.2°C.

By country, Italy, Germany, France and Japan were among those with companies with the lowest temperature increase trajectories, at 1.8°C, 2.0°C, 2.3°C and 2.4°C, respectively while countries in emerging markets were among those with the most significant increase trajectories, with Saudi Arabia, Indonesia, India and China at 10°C, 7.9°C, 4.9°C, and 4.4°C, respectively.

Overall, the report found that the emissions trajectories of the world’s listed companies currently imply warming of 3°C.

While most companies are not yet aligned with global climate goals, the report found that companies are continuing to set climate-related targets, and that the integrity of those goals continue to increase.

According to the report, as of December 2025, 60% of listed companies have published some form of climate commitments, up slightly from 59% in 2024, and well ahead of 26% in 2020. Similarly, 32% of companies have set company-wide net zero targets, up slightly from 31% in 2024, and from 5% in 2020.

While the pace of target-setting has slowed, however, the report indicated a significant increase in ambition within companies’ climate goals, with the proportion of listed companies with a Science Based Targets initiative (SBTi)-approved target rising to 19% in 2025, up from 14% in 2024, and 9% in 2023.

The report also indicated continues progress in companies’ climate-related reporting practices, finding that an estimated 79% of companies disclosed their Scope 1 and/or Scope 2 emissions as of the end of 2024, up from 76% in the prior year, while 56% reported on at least some Scope 3 emissions, increasing from 51% in the prior year.

Click here to access the report.