More than a third of S&P 500 companies have monetary incentives linked to emissions reduction. However, fewer senior executives have such incentives, including only 15% of CEOs. Notably, 48% of energy companies link CEO compensation to emissions reductions. The study also found that less than half of large U.S. companies have set net zero targets. These targets focus primarily on Scope 1 and 2 emissions, with much lower ambitions for Scope 3 value chain emissions. The report warns that companies’ net zero commitments often lack ambitious near-term goals. Overall, companies aim to cut Scope 1 and 2 emissions by an average of 51%, but only have targets to cut Scope 3 emissions by an average of 11%.

Source: ESG Today