The race to net zero has never been more crowded, but it has also never been more uneven. That is the central message running through the Net Zero Stocktake 2025, a report launched by New Climate Institute, Oxford Net Zero, Energy & Climate Intelligence Unit and Data-Driven EnviroLab, a document that avoids soft assurances and instead lays bare how far companies have come — and how far they still need to go.
The report tracks corporate climate commitments across sectors and geographies. It shows encouraging momentum on one hand and serious credibility gaps on the other. It reads almost like a mirror held up to the global private sector: some companies are sprinting, some are strolling, and some are standing still despite loud promises.
This story unpacks what the findings mean, who is actually moving, and why corporate climate action in 2025 is a mix of progress and hesitation.
Momentum is growing, but credibility is not guaranteed
One of the report’s most telling lines states that “net zero commitments have more than doubled since 2021, but the quality of these commitments remains highly variable.” That variability is what makes the corporate climate landscape messy.
More companies today talk about net zero than ever before. They publish glossy sustainability reports, declare multi-decade goals, and join alliances. But when the Stocktake examines those commitments closely, many fall short of basic expectations: clear interim targets, clarity on Scope 3, and a concrete plan for cutting emissions rather than depending on offsets.
For many firms, the gap lies not in intention but in follow-through. The report notes that “only a minority of corporate pledges include detailed plans covering all major emission sources,” a reminder that ambition without structure remains just that — ambition.
Who is moving faster? The leaders are widening the gap
The report does not name and shame individual companies, but it identifies patterns. Firms with strong public pressure, investor scrutiny and energy-intensive operations tend to move faster. So do companies in regions with stronger regulation.
One line stands out: “Companies operating in jurisdictions with mandatory disclosure rules show significantly higher alignment with net zero pathways.” Regulation acts as a floor, not a ceiling, and it forces companies to move even if voluntarily, they might not.
Large global consumer brands, technology companies, and some heavy industry players are showing visible progress. Where they differ is in the speed and maturity of their plans.
The report highlights that companies with credible transition plans “share common characteristics: robust governance, science-based interim targets, and transparent reporting.” These are not glamorous elements, but they are the backbone of real progress.
Who is delaying? The quiet majority
The Stocktake does not mince words here. “Most companies globally still lack a credible net zero strategy,” it says plainly. That sentence reflects the reality that while corporate enthusiasm has grown, action has not kept pace.
Many firms continue to:
– treat climate goals as voluntary add-ons,
– rely on offsets instead of cutting emissions at source,
– avoid addressing Scope 3, the largest part of their footprint,
– focus on long-term goals rather than near-term reductions.
This pattern is especially visible in emerging markets, mid-sized companies, and sectors with fewer regulatory pressures. The report warns that “delayed action now will lock companies into higher transition risks later,” especially as global markets tighten standards and investors demand better disclosure.
Offsets vs real cuts — the credibility divide
One of the most important sections of the Stocktake warns that “overreliance on carbon credits risks undermining corporate climate integrity.” Companies that lean too heavily on offsets tend to delay the hard work: redesigning processes, switching fuels, improving efficiency and rethinking supply chains.
Credible companies treat offsets as a last resort, not a first option. The Stocktake puts it bluntly: “Deep, real-world emissions reductions remain non-negotiable.”
For many firms, this message hits a nerve. Reducing emissions inside the business model demands capital, time, and uncomfortable strategic choices — far harder than buying offsets. But the report makes it clear that companies cannot outsource their way to net zero.
Scope 3: the elephant that companies keep walking around
No corporate climate plan is complete without Scope 3 emissions, which often form 70–90% of a company’s footprint. The Stocktake says: “Fewer than half of companies with net zero targets include Scope 3 emissions with measurable commitments.”
This gap is especially visible in sectors with complex supply chains — retail, food, construction materials, and energy. Without tackling this piece, corporate climate promises stay shallow.
The report stresses that transparency is improving, but too slowly. Companies naming Scope 3 without clear targets are “creating a façade of ambition,” it warns.
Investor pressure is reshaping behaviour — quietly but firmly
A striking insight from the Stocktake is that investor expectations are now as influential as government regulations. The report notes that “companies that disclose transition plans to investors are significantly more likely to adopt science-based targets.”
What this signals is a shift in where climate accountability sits. Markets now reward preparation and penalise delay. Even if no new policy emerges, the financial sector alone is pushing companies to act.
Transparency on transition financing — how companies plan to pay for their climate promises — is growing, but still inconsistent.
Sector winners and laggards: the divide is widening
The Stocktake points to sectoral patterns:
Sectors accelerating:
– electricity generation,
– steel and cement (select leaders),
– consumer-facing brands,
– global tech companies.
Sectors lagging:
– aviation and shipping,
– chemicals,
– agrifood and livestock,
– small and mid-sized manufacturing firms.
The report says: “Sectors with clear technological pathways are moving faster than sectors where alternatives remain uncertain or costly.” This is perhaps the simplest explanation for the uneven pace.
What does credible leadership look like in 2025?
The Stocktake lays down a straightforward checklist:
- Clear interim targets before 2030.
- Coverage of all scopes, especially Scope 3.
- Transparent transition financing.
- Minimal dependency on offsets.
- Annual reporting linked to science-based pathways.
Any company ticking these boxes is ahead of most.
But what stands out in the report is its subtle warning: “Leadership today does not guarantee alignment tomorrow unless companies keep strengthening their plans.”
In other words, even the frontrunners cannot become complacent.
Why the next five years matter more than the next twenty
This is the thread running throughout the report. The world does not have the luxury of focusing on 2040 and 2050 targets without clear action this decade.
The Stocktake states that “2030 is the pivotal milestone for corporate climate action, determining whether net zero pathways remain within reach.” Companies delaying action today will find the door closing — politically, technologically and financially.
The climate transition is already reshaping supply chains, export markets and investor behaviour. Companies waiting for perfect conditions may find themselves outpaced by those that move with imperfect but earnest steps.
Conclusion: A race where speed and sincerity matter
The Net Zero Stocktake 2025 is not a celebratory document. It is a reality check. It shows that the world has more corporate climate commitments than ever, but commitment is no longer the problem. Credibility is.
Some companies are treating climate action as core strategy. Others still treat it as marketing. The gulf between these two groups is widening.
Yet the report also carries a quiet optimism. It notes that “momentum continues to build, and the foundations for credible corporate action are stronger than ever.”
The world is moving — just not fast enough. And the companies that move now will lead the markets of tomorrow.
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