Moody’s ESG Solutions Launches Dataset to Help Investors and Companies Assess Alignment With Net Zero Targets

Moody’s ESG Solutions today announced the launch of its Temperature Alignment Data, a net zero solution which assesses how companies’ emissions targets align with global temperature benchmarks and their progress in meeting those targets.

“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,” said Andrew Grant, Vice President – Climate Solutions in Moody’s ESG Solutions Group. “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.”

Moody’s ESG Solutions’ Temperature Alignment Data currently covers 4,400 of the largest companies globally, and will be expanded over time. Banks and asset managers can use the data to quantify and monitor corporate emissions targets and the temperature alignment of their portfolios, while companies can benchmark their emissions targets against peer targets and market expectations.

Findings from the new dataset include:

• While 42% of the 4,400 covered companies have set emissions targets, only 3% of the 4,400 have targets aligned with achieving 1.5°C by 2050.
• The average implied temperature rise among assessed companies is 2.9°C.
• Sector results vary widely, but every individual sector covered has an implied increase of above 2°C and fails to rise to the ambitions of the Paris agreement.

For more data insights, read a new white paper by Moody’s ESG Solutions: https://assets.website-files.com/5df9172583d7eec04960799a/61b082b66f75e368fd16f536_BX10380_Corporate%20emissions%20targets%20failing%20to%20keep%20pace%20with%201.5C%20trajectory.pdf

The Temperature Alignment data expands upon Moody’s ESG Solutions’ existing data offering for assessing transition risk, including: Carbon Footprint Data, which captures or models scope 1, 2 and 3 emissions; Brown Share/Green Share Data, which assesses corporations’ exposure to fossil fuels; and Climate Controversies Data, which captures entities’ known or reported controversies related to climate change and GHG emissions.

To learn more about Moody’s Climate Solutions visit: https://esg.moodys.io/climate-solutions. For the latest insights and analysis from across Moody’s on climate risks, visit Moody’s Climate Hub.

ABOUT MOODY’S ESG SOLUTIONS

Moody’s ESG Solutions Group is a business unit of Moody’s Corporation serving the growing global demand for ESG and climate insights. The group leverages Moody’s data and expertise across ESG, climate risk, and sustainable finance, and aligns with Moody's Investors Service and Moody's Analytics to deliver a comprehensive, integrated suite of ESG and climate risk solutions including ESG scores, analytics, Sustainability Ratings and Sustainable Finance Reviewer/certifier services. For more information visit Moody’s ESG & Climate Risk hub at www.moodys.com/esg.

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Contact information

Moody’s ESG Solutions:
Lisa Stanton
MD-Global Sales Lead/ESG
+1 (415) 874-6000
Lisa.Stanton@moodys.com

Media inquiries:
Michael Simon
AVP, Communications
+1 (212) 553-0213
michael.simon@moodys.com