Net-Zero Tracker - intro

The MSCI Net-Zero Tracker indicates the collective progress of publicly listed companies in the MSCI ACWI Investable Market Index (IMI)1 (which covers 9,300 listed companies, representing 99% of the global equity universe) in keeping global warming well below 2°C. It also highlights the largest listed companies with improved climate disclosures, as well as those that lag.

The MSCI Net-Zero Tracker offers investors, companies, financial intermediaries and policymakers an objective gauge of the contribution by the world’s public companies to total carbon emissions and their progress toward a net-zero economy.

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Key Findings

We’re running out of time to reach net-zero emissions

Companies in the MSCI ACWI IMI emit an estimated 10.9 billion tons (gigatons) of direct (Scope 1) greenhouse gases annually, putting them on a trajectory to exceed their carbon budgets for keeping global temperature rise below 1.5°C as soon as 2026.2

 

5 years and 8 months: Time remaining until companies deplete the emissions budget for keeping global temperature rise below 1.5°C

Time remaining until companies deplete the emissions budget for keeping global temperature rise below 1.5°C

21 years and 5 months: Time remaining until companies deplete the emissions budget for keeping global temperature rise below 2°C

Time remaining until companies deplete the emissions budget for keeping global temperature rise below 2°C

Source: MSCI, based on the emissions trajectory of the MSCI ACWI IMI, as of May 31, 2021


Burning Through the Emissions Budget

Burning Through the Emissions Budget

To limit warming to 1.5°C by 2050, listed companies would need to collectively cap future Scope 1 emissions at 61.4 gigatons of CO2e. Without any change to their current emissions of nearly 11 gigatons a year, listed companies would deplete their remaining emissions budget in 5 years, 8 months.2

Burning Through the Emissions Budget

*The chart above shows annual total Scope 1 emissions of MSCI ACWI IMI constituents (not index weighted) based on companies’ reported emission data and MSCI estimates, up to 2020. Emissions for 2020 that companies haven't yet reported and 2021 figures are based solely on MSCI estimates, given a lag in company reporting. The remaining future emissions budget to achieve a 1.5°C and 2°C warming scenario are calculated based on bottom-up estimates (sum of remaining emissions budget of all MSCI ACWI IMI constituents) as of May 31, 2021.


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footnote

1 The MSCI ACWI Investable Market Index (IMI) captures large, mid and small cap publicly listed companies across 23 Developed Markets (DM) and 27 Emerging Markets (EM) countries. The index is comprehensive, covering approximately 99% of the global equity investment opportunity set.

2 methodology used to estimate companies' latest annual emissions, see page 7 in the MSCI Net-Zero Tracker.