Against the backdrop of deepening global climate action, the role of corporations in addressing climate change is becoming increasingly prominent. As significant sources of greenhouse gas emissions, companies not only directly impact the global decarbonization process but also largely determine whether low-carbon technology innovation, industrial transformation, and climate goals can be genuinely realized. Driven by a combination of government policies, capital market pressures, and supply chain requirements, corporations have become a critical nexus connecting macro-level climate targets with tangible emission reduction actions.
To limit global warming to within 1.5°C above pre-industrial levels, corporate-level net-zero actions are widely considered an indispensable component. Only by embedding the net-zero transition from "visionary commitments" into core strategies and daily operations can the world achieve the necessary deep decarbonization within the limited time window available. Looking back at 2025, the corporate path to net-zero has not been linear: on one hand, external environmental changes have introduced significant twists and challenges; on the other, corporate participation, target coverage, and action depth continue to evolve, presenting a mix of realistic pressures and positive signals.
The global corporate net-zero journey advanced through setbacks in 2025.
In recent years, the global sustainability process has faced increasingly complex and volatile external conditions, with growing uncertainties and challenges emerging in political and economic spheres. Consequently, 2025 proved to be an inauspicious start for the corporate net-zero action ecosystem.
From late December 2024 to early 2025, six major U.S. banks—including Goldman Sachs, Wells Fargo, and Citigroup—successively withdrew from the United Nations-supported Net-Zero Banking Alliance (NZBA). This triggered subsequent withdrawals by banks from other regions, ultimately leading to the alliance announcing its cessation of operations and transformation into a non-membership framework in October 2025. This event was seen as a symbolic manifestation of setbacks encountered in the sustainability field.
In 2025, several large corporations also demonstrated shifts in their climate targets. For instance, UK-based supermarket chain Morrisons postponed its original 2035 net-zero carbon emissions target to 2050; Norwegian energy company Equinor scaled back its climate ambitions, abandoning its commitment to allocate over 50% of investments to renewable energy and low-carbon technologies by 2030, while also lowering its mid-term emission reduction targets. These cases illustrate that corporate net-zero commitments continue to face practical tests amid global geopolitical tensions and increasing economic uncertainties.
However, these setbacks do not tell the whole story. Overall, global corporations made positive strides in net-zero actions throughout 2025.
Accenture's "Net-Zero Target 2025" report, released in November 2025, revealed that 41% of the world's largest 2,000 companies had established net-zero targets covering their entire value chain (Scope 1, 2, and 3 emissions), marking the fourth consecutive year of growth—up from just 27% in 2021. Regionally, European companies showed the most significant increase, rising from 38% in 2021 to 65% in 2025; the Asia-Pacific region followed, growing from 24% to 35%; notably, North America reversed its two-year declining trend in 2025, achieving growth from 23% to 29%.
Furthermore, the SBTi Trend Tracker released in August 2025 indicated that by the end of the second quarter of 2025, nearly 11,000 companies globally had obtained validation for science-based targets (including near-term or net-zero targets). Compared to the end of 2023, the number of companies with validated near-term emission reduction targets grew by 97%, while the number of companies that had both set and validated both near-term and net-zero targets surged by 227%. This suggests that more companies are not only accelerating actions on short-term emission reduction pathways but also strengthening their commitment to long-term net-zero pledges.
Another increasingly evident trend is the adoption of a "do more, say less" strategy in sustainability practices by a growing number of corporations, a phenomenon termed "Greenhushing." Greenhushing refers to companies continuing to advance emission reductions and climate targets while choosing to underreport or withhold public information to mitigate external pressure or controversy. A July 2025 article in The Economist, "The remarkable rise of 'greenhushing'," noted that compared to past controversies over inflated commitments leading to frequent "greenwashing" allegations, many companies now opt for greenhushing to maintain a low profile, focusing on actual emission reductions rather than public statements. This reflects a more pragmatic and cautious corporate approach to climate action amid intensified external scrutiny.
Chinese corporations demonstrate strong momentum in net-zero actions.
Compared to the divergent and slowing net-zero actions observed in some regions, Chinese companies overall exhibit robust momentum in their net-zero transition. This drive stems from both continuously improving policies and disclosure frameworks, as well as heightened corporate attention to sustainability and net-zero issues driven by dual pressures of international market competition and domestic compliance requirements. The accelerating formation of policy frameworks, combined with proactive corporate responses, positions China as one of the more active markets in the current global corporate net-zero landscape.
On the policy front, China has been progressively enhancing its corporate sustainability and information disclosure framework in recent years, with relevant regulations showing a clear trend of systematic advancement and international alignment. Since 2024, the three major stock exchanges, along with ministries including the Ministry of Finance and the Ministry of Ecology and Environment, have successively issued guidelines for listed companies' sustainability reports, compilation manuals, and disclosure standards, gradually building a disclosure system covering overall corporate sustainability performance and climate issues.
Notably, the "Corporate Sustainable Disclosure Standard No. 1 – Climate (Trial)" jointly released by nine departments including the Ministry of Finance and the Ministry of Ecology and Environment in 2025 maintains overall alignment in principles with the IFRS S2 "Climate-related Disclosures" issued by the International Sustainability Standards Board (ISSB), reflecting an accelerating trend of convergence between Chinese disclosure standards and international rules. This alignment helps reduce costs for companies meeting both domestic and international disclosure requirements and facilitates Chinese companies' participation in international markets and global supply chains.
At the net-zero action level, Chinese corporations generally demonstrate strong proactiveness, driven by both external pressures from international market access and supply chain requirements, and internal drivers from the gradual improvement of domestic information disclosure and regulatory systems.
From an international perspective, as major markets like Europe continue to strengthen climate and sustainability requirements, possessing credible, verifiable emission reduction targets is increasingly becoming a critical "threshold" for participating in global competition. For example, joining the Science Based Targets initiative (SBTi) helps companies signal to overseas customers, investors, and financial institutions that their emission reduction pathways align with international climate science, thereby reducing communication costs. Consequently, companies with international operations or plans to expand overseas show particularly strong willingness to participate. According to SBTi Trend Tracker data, the number of Chinese companies with science-based targets grew by 228% over the 18 months from the end of 2023 to the second quarter of 2025—the highest growth rate globally.
Domestically, with the implementation of sustainability report guidelines for listed companies and related disclosure standards, sustainability and climate information is gradually shifting from "voluntary disclosure" to "institutional requirements." This objectively pressures relevant companies to proactively map out emission reduction pathways, improve data systems, and integrate net-zero targets more closely with daily operations and strategic planning. For instance, the 2024 sustainability report guidelines require constituent companies of the SSE 180 Index, STAR 50 Index, and companies listed both domestically and overseas to publish sustainability reports, specifying that they "shall release the 2025 Sustainability Report by April 30, 2026," with relevant compilation guidelines already issued in 2025.
Corporate net-zero actions are poised to enter an accelerated and deepening phase.
Looking ahead to 2026 and beyond, corporate net-zero actions are expected to enter a new phase of accelerated advancement and sustained deepening, driven by the gradual maturation of regulatory frameworks, the rapid development of digital technologies, and the increasingly clear business case for corporate net-zero initiatives.
First, sustainable disclosure and climate regulatory systems are taking shape at an accelerated pace globally and in China. With the full implementation of relevant EU policies and the gradual establishment of China's sustainable disclosure standard system, regulatory requirements are evolving from principle-based guidance toward more operational and comparable institutional arrangements. This trend will push more companies to transition from "making commitments" to "undertaking verifiable, traceable practical actions." In the future, Scope 3 emissions management and nature-related risk and impact disclosure will become key focus areas for the next phase.
Second, the mature application of artificial intelligence and related digital tools will provide crucial support for corporate net-zero actions. On one hand, AI and digital systems can enhance the accuracy and efficiency of energy management and emission monitoring through automated data collection and analysis; on the other, such tools are expected to significantly lower the cost barriers of carbon accounting, reporting, and tracking, enabling more small and medium-sized enterprises to participate in net-zero actions, thereby expanding the reach of these initiatives.
Finally, corporate net-zero actions are gradually shifting from being perceived as "cost inputs" to becoming strategic choices with clear returns. Practice demonstrates that advancing deep decarbonization not only helps companies reduce operational uncertainties stemming from climate change and policy adjustments but also translates into tangible business returns through improved energy efficiency, reduced energy costs, and enhanced supply chain resilience. For example, some large corporations have achieved significant carbon footprint reductions alongside sustained operational cost reductions and enhanced brand competitiveness through large-scale energy efficiency improvements and renewable energy investments.
In conclusion, while the corporate path to net-zero has never been straightforward, companies committed to establishing science-based targets, steadfastly advancing emission reductions, and balancing transparency with feasibility will undoubtedly gain a competitive edge in the global low-carbon economic transition and contribute significantly to achieving the 1.5°C temperature control goal.
Sina Finance ESG Rating Center Profile. The Sina Finance ESG Rating Center is the first Chinese-language ESG professional information and rating aggregation platform in the industry, dedicated to promoting and disseminating sustainable development, responsible investment, and ESG (Environmental, Social, and Governance) values. It communicates corporate ESG practices and exemplary cases, drives the development of China's ESG sector, and contributes to the establishment of Chinese ESG assessment standards and the enhancement of corporate ratings.
Leveraging the ESG Rating Center, Sina Finance has launched several innovative ESG indices, providing more options for investors focused on corporate ESG performance. Concurrently, Sina Finance has established the China ESG Leaders Organization Forum, collaborating with leading Chinese ESG companies and partners to promote the development of an ESG evaluation standard system suited to China's contemporary characteristics through ESG principles and foster the growth of ESG investing within China's asset management industry.