Fortune 500 Evolving Net Zero Commitments: Trends, Challenges, and the Growing Role of Carbon Credits

From Goals to Action: The Growing Role of Carbon Credits in Net Zero Plans

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The number of Fortune 500 companies with net zero commitments has increased by 6%, signaling renewed momentum after minimal growth in previous years. From 2022 to 2023, the growth rate stagnated at only 2%. This resurgence reflects the increased urgency among companies to address their climate impact and meet evolving regulatory expectations¹. 

Currently, about half of Fortune 500 companies have established net zero goals, which is a remarkable rise compared to 2020, when only 8% had made such commitments¹. This shift highlights the growing recognition of the importance of tackling climate change through comprehensive strategies that include both internal emission reductions and external offsetting measures. 

Adopting Science-Based Targets for Net Zero 

The Science-Based Target initiative (SBTi) has become a widely respected framework guiding companies on credible net zero claims. Despite its popularity, only 17% of Fortune 500 companies currently use the SBTi Net Zero Standard, slightly down from 18% last year². The SBTi’s stringent requirements pose challenges for some businesses, making compliance more difficult. 

Last year, 15% of companies committed to aligning with SBTi’s net zero targets, but only 4% have since gained approval for their targets, while 3% were removed from the list. The remaining companies are still working toward validation, which must be completed within 24 months of making a commitment. 

Regional Differences in Near-Term Targets 

Approximately 35% of Fortune 500 companies have near-term science-based targets (SBTs), a figure that has remained stable year over year. However, regional variations exist. In Europe, the percentage of companies with near-term targets dropped from 64% to 60%, while in North America, it increased from 38% to 43%³. Europe and Asia have seen new SBT commitments in 2024, with eleven companies from Europe and from Asia setting these goals³. 

The Role of Carbon Credits in Climate Action Plans 

Carbon credits are playing an increasingly prominent role in corporate climate strategies, with only 2% of companies explicitly ruling out their use. Companies that utilise carbon credits are twice as likely to have near-term SBTs and three times more likely to establish net zero targets that cover their entire value chain. 

Contrary to the criticism that carbon credits may delay internal emission reductions, research indicates that companies purchasing credits are accelerating their emission reduction efforts. Those aiming for carbon neutrality by 2030 are nearly twice as likely to have near-term SBTs compared to companies without such targets⁴. 

Carbon Neutrality Progress and Regional Insights 

As of the latest data, 8% of Fortune 500 companies have achieved carbon neutrality, while 9% plan to do so by 2030, and 17% by 2050. Altogether, 34% of companies mention carbon compensation actions such as “carbon neutral” or “100% offset” in their sustainability plans⁵. 

North American companies setting targets for 2050 rose from 30% to 32%, while European companies saw a decline in targets from 59% to 51%. This shift in Europe could be driven by regulatory scrutiny, particularly from the EU’s Green Claims Directive, which may ban carbon-neutral claims on consumer-facing products by 2026⁵. 

Challenges in Reducing Scope 3 Emissions 

Scope 3 emissions, which account for approximately 90% of most companies’ total emissions, remain the most difficult to reduce. These emissions span a company’s value chain and are often outside its direct control. To address this challenge, initiatives like the Voluntary Carbon Markets Integrity Initiative’s (VCMI) Scope 3 Flexibility Claim have emerged⁵. 

The debate around Scope 3 also extends to Beyond Value Chain Mitigation (BVCM), which encourages companies to purchase carbon credits for emissions that are beyond their direct influence. 

Anthesis is Guiding the Future of Corporate Climate Action 

Looking ahead, companies are likely to continue balancing internal emission reduction efforts with the purchase of carbon credits to meet both short- and long-term net zero targets. By purchasing high-quality carbon credits and transparently addressing their emissions, businesses can build trust with stakeholders and ensure sustained progress toward climate goals. 

However, with increased regulatory scrutiny, especially in Europe, companies must refine their climate communication and strategies to align with credible frameworks and avoid accusations of greenwashing. As the landscape of corporate climate action evolves, organisations will need to stay adaptable and ensure their approaches meet the rising standards of accountability and transparency. 

Anthesis offers a range of carbon services that integrate seamlessly into corporate climate strategies, helping businesses adopt net zero targets and utilising carbon credits to accelerate emission reductions. As more companies embrace carbon credits, Anthesis ensures that the credits sourced are of high quality and tied to impactful carbon reduction projects. Anthesis also supports the development and certification of carbon projects that meet international standards, ensuring that companies go beyond simple credit purchases by contributing to projects like reforestation and direct air capture. 

In addition to addressing internal emission reductions, Anthesis provides expert guidance on managing Scope 3 emissions, which are often the largest and most challenging aspect of corporate climate strategies. By helping companies measure, reduce, and report on these indirect emissions, Anthesis ensures alignment with rigorous standards such as the Science-Based Targets initiative (SBTi). Furthermore, Anthesis supports Beyond Value Chain Mitigation (BVCM), encouraging businesses to address emissions beyond their immediate control through strategic carbon credit purchases. 

With increasing regulatory scrutiny, especially in the EU, Anthesis helps companies ensure that their carbon credit use and sustainability claims are both credible and compliant with emerging regulations. By integrating comprehensive reporting and ensuring that climate action aligns with evolving frameworks, Anthesis minimises the risks of greenwashing, enhancing stakeholder trust and long-term sustainability. 

Anthesis also adheres to the Oxford Principles for Net Zero Aligned Carbon Offsetting, which provides a robust framework for companies using offsets. These principles emphasise the need for carbon credits to be used as a complement to deep internal reductions. They focus on the importance of prioritising emissions reductions, using high-quality carbon offsets that genuinely contribute to removing or reducing carbon from the atmosphere, and transparently reporting progress. Anthesis integrates these principles into its services, ensuring that companies not only achieve net zero goals but also contribute meaningfully to long-term climate solutions. 

For more details on how Anthesis can support your carbon reduction goals, visit Anthesis Carbon Credits and Projects or email contact@anthesisgroup.com. 

Footnotes 

  1. Climate Impact Partners, Research on Fortune 500 Companies’ Net Zero Trends, 2023. 
  2. Science-Based Targets Initiative (SBTi), Net Zero Standard Reports and Compliance Challenges, 2024. 
  3. Climate Action Insights, Regional Targets Analysis: North America vs. Europe, 2023. 
  4. CarbonNeutral, The Role of Carbon Credits in Accelerating Corporate Emission Reductions, 2023. 
  5. EU Green Claims Directive Analysis and Scope 3 Emission Reduction Frameworks, Beyond Value Chain Mitigation, 2024. 

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