Listed companies are polluting the atmosphere at a rate that would warm the planet by 2.9 degrees Celsius by 2050, according to index compiler MSCI. Only 11% of them are on track to ratchet their carbon emissions down to a level that would limit human-induced temperature increases to the crucial goal of 1.5 degrees Celsius, reports the South China Morning Post.
To meet that goal, listed companies must reduce their carbon intensity by 8 to 10% every year until 2050, MSCI said. Yet only 39% of companies reduced emission intensity by that amount between 2019 and 2020, according to MSCI’s Net-Zero Tracker report, which aims to increase the transparency to investors and policymakers regarding listed companies’ actions to tackle climate change.
Carbon intensity, or emission intensity, is the ratio of every tonne of carbon-dioxide equivalent emitted to every $1 million of company sales, according to MSCI.