Net-zero commitments remain strong despite challenges
More than 1,900 countries, regions, cities and large companies around the world have kept their net-zero targets in place. This finding comes despite rising political pressure, economic uncertainty and shifts in national policy priorities. The sixth annual Net Zero Stocktake, published in May 2026 before COP31 in Türkiye, tracked over 4,000 entities. It found that commitments have largely held steady. However, fresh pledges have slowed significantly. Meanwhile, implementation quality varies widely across sectors and geographies.
For UK businesses, these patterns matter. Supply chain partners, overseas customers and domestic competitors all operate within this changing landscape. Furthermore, procurement requirements continue to evolve. Public sector tenders increasingly reference net-zero credentials. As a result, understanding where climate commitments are strengthening or weakening helps firms manage commercial risk and plan investment decisions.
The stocktake offers evidence that widespread backtracking has not materialised. Nevertheless, it also reveals persistent gaps in target coverage, particularly among cities, regions and financial institutions. Consequently, businesses need to look beyond headline pledges. Actual emissions performance and credible delivery plans now matter more than target announcements alone.
Global commitments hold at 47% coverage
Researchers assessed 4,062 entities in total. These included national governments, states, regions, cities and the world's largest companies. Overall, 47% had adopted a net-zero or equivalent target. This proportion remained unchanged from 2025. The comparable figure was only 18% in 2020. Therefore, long-term growth has been substantial even though momentum has recently plateaued.
More than 90% of governments and companies maintained the same or similar net-zero target from the previous year. Researchers described this as evidence of resilience rather than rapid expansion. In other words, commitments are holding firm. However, new target-setting has stalled across most categories.
Among the world's largest companies, 64% had net-zero commitments. These firms represent approximately $40 trillion in annual revenue. Notably, 78% of companies with targets had published implementation plans. This figure rose from 69% in 2025. Even so, nearly one-fifth of tracked companies still had no mitigation target at all.
Subnational governments lagged significantly. Only 28% of cities and 29% of states and regions had adopted targets. This gap is particularly important because local authorities control or influence high-emitting systems. These include transport networks, building standards, waste infrastructure and local energy systems.
The population covered by state and regional targets increased from 497 million in 2020 to 2.21 billion in 2026. This growth demonstrates that subnational action can expand rapidly when major jurisdictions commit. However, the low overall proportion of cities with targets remains a structural weakness in global climate governance.
US corporate targets remain stable despite federal policy shifts
American companies have largely retained their climate commitments. Among tracked US firms, 51% maintained net-zero targets in 2026. This compares with 52% the previous year. Those 289 companies represent approximately 64% of assessed US corporate revenue, equivalent to $13.1 trillion.
This stability is notable given the federal government's opposition to aspects of the clean-energy transition. It suggests that many large US businesses view net-zero commitments as commercially advantageous. Reasons likely include investor expectations, customer preferences, supply chain requirements and international market access.
European companies continued to lead. Corporate coverage in the EU rose to 85%. Meanwhile, China recorded a notable increase from 24% to 28% of tracked companies with net-zero targets. The share of Chinese firms without any emissions target fell from 65% to 58% year on year.
However, target existence does not guarantee emissions reductions. A separate review of the 50 largest companies found evidence of weakened commitments at 20 of the 43 firms with targets. Financial institutions accounted for 11 of these cases. Consequently, finance emerged as the sector with the most visible concentration of backtracking.
Common forms of backtracking included weakening existing targets or withdrawing them altogether. For example, several companies reduced the scope of their emissions coverage. Others pushed back interim milestones. At the same time, firms including Microsoft and Google retained 2030 commitments while reporting rising annual emissions. This illustrates the difference between maintaining a pledge and delivering near-term reductions.
Implementation plans increase but Scope 3 coverage remains weak
One positive development was the rise in published implementation plans. Among companies with targets, approximately 78% had published plans in 2026. This rose from 69% in 2025. The increase matters because credible net-zero governance requires more than a distant target year.
Effective plans generally include interim milestones, detailed emissions accounting, investment commitments, governance arrangements and transparent reporting. Nevertheless, the stocktake found substantial weaknesses. Fewer than half of corporate targets fully covered Scope 3 emissions. These value-chain emissions include supply chains, product use and other activities. Frequently, they account for the majority of a company's climate footprint.
For UK manufacturers and distributors, this gap has direct implications. Scope 3 emissions include purchased goods, logistics, employee commuting and product end-of-life treatment. Therefore, businesses without comprehensive coverage may face challenges in public procurement. They may also struggle to meet customer requirements or attract certain investors.
The report also found that almost three-quarters of national mitigation commitments were now embedded in legislation or formal policy. This represented a six-percentage-point increase from 2025. However, 38% of tracked entities still lacked both a long-term and a short-term target. This limitation makes it difficult to assess whether near-term action aligns with eventual net-zero goals.
UK businesses should note that credible net-zero plans increasingly require interim targets. These typically cover 2030 or 2035. Without them, it becomes harder to demonstrate progress. Moreover, procurement frameworks such as PPN 06/21 expect suppliers to show measurable emissions reductions. Consequently, long-term pledges alone may not satisfy tender requirements.
Cities and regions show lowest target adoption rates
Subnational governments represent the largest coverage gap. Only 28% of tracked cities and 29% of states and regions had adopted targets. This matters because cities and regions control or strongly influence transport, buildings, waste and local energy infrastructure.
Relatively low target coverage among local authorities can weaken the implementation of national climate policies. This is particularly true where subnational governments are responsible for delivering practical emissions reductions. In the UK, local authorities play a key role in planning, housing standards, public transport and waste management. Therefore, their engagement directly affects the feasibility of national net-zero objectives.
The disparity between higher and lower-income countries is pronounced. Around 68% of tracked G7 cities had net-zero targets. In contrast, only 30% of G20 cities and 5% of cities in low-income countries had adopted targets. These figures point to persistent differences in administrative capacity, finance, technical expertise and access to clean infrastructure.
Despite the low proportion of cities with targets, the growth in population covered by state and regional commitments shows that subnational action can expand rapidly. The increase from 497 million people in 2020 to 2.21 billion in 2026 demonstrates significant potential. However, the overall rate of adoption remains slower than national or corporate target-setting.
What UK businesses should understand about these findings
- Almost half of tracked countries, regions, cities and large companies now have net-zero targets, a proportion that has remained stable despite political and economic uncertainty.
- Among the world's largest companies, 64% have net-zero commitments representing approximately $40 trillion in annual revenue, but nearly one-fifth still have no mitigation target.
- Implementation plans among companies with targets rose from 69% in 2025 to 78% in 2026, indicating a shift towards execution rather than announcement.
- Fewer than half of corporate targets fully cover Scope 3 emissions, creating potential gaps in supply chain accountability and public procurement eligibility.
- Only 28% of cities and 29% of states and regions have adopted targets, representing a significant weakness in local climate governance.
- US companies largely retained their climate commitments in 2026, with 51% maintaining net-zero targets despite federal policy opposition to aspects of the clean-energy transition.
- Financial institutions showed the most visible concentration of backtracking, with 11 of the 50 largest companies weakening or withdrawing commitments.
- Almost three-quarters of national mitigation commitments are now embedded in legislation or formal policy, up six percentage points from 2025.
COP31 context and diplomatic outlook
The stocktake was released ahead of COP31 in Antalya, Türkiye. The conference is expected to focus on translating existing commitments into implementation. It will also strengthen the evidence base for the next global stocktake under the Paris Agreement.
The wider diplomatic context remains challenging. A European Parliament briefing noted that projected emissions reductions from new national climate plans had fallen. Earlier estimates suggested a 17% reduction below 2019 levels by 2035. More recent assessments indicate approximately 12%. This outlook is consistent with roughly 2.3°C to 2.5°C of warming.
The European Union has nevertheless maintained its climate course. Its targets include a 55% net greenhouse gas reduction by 2030, a 90% reduction by 2040, and climate neutrality by 2050. These commitments illustrate the gap COP31 must address. Some governments and companies are strengthening formal commitments. However, aggregate global action remains insufficient for the Paris Agreement's temperature goals.
The European Parliament has reiterated that limiting warming to 1.5°C would require global emissions reductions of 43% by 2030 and 60% by 2035. These figures compare with 2019 levels. Global net zero would need to follow around 2050. Consequently, the gap between current trajectories and required action remains substantial.
Commercial implications for UK firms
For UK businesses, the stocktake findings carry several practical implications. First, climate commitments among major companies and governments appear more durable than many observers expected. This suggests that supply chain expectations around carbon reporting and emissions reductions are likely to persist. Therefore, businesses should plan on the assumption that net-zero requirements will continue rather than fade.
Second, the shift towards implementation plans indicates that scrutiny is intensifying. Customers, investors and procurement teams increasingly ask for evidence of actual progress. Consequently, firms should focus on measurable emissions reductions and interim milestones. Our net-zero program for carbon reporting compliance helps businesses develop credible implementation plans that meet these expectations.
Third, the weakness in Scope 3 coverage presents both a risk and an opportunity. Businesses that comprehensively measure and manage value-chain emissions may gain a competitive advantage. This is particularly true in public sector procurement. Conversely, firms that neglect Scope 3 may find themselves excluded from certain tenders or customer requirements.
Fourth, the variation in corporate commitments by region affects international trade and investment. European companies show the highest target adoption rates. Chinese companies are increasing coverage. US firms have largely held steady. These patterns influence how businesses assess partners, suppliers and market opportunities across different geographies.
Fifth, the gap in subnational government targets has implications for local supply chains and infrastructure investment. UK businesses operating across multiple local authority areas may encounter inconsistent planning frameworks, building standards and transport policies. Understanding these variations helps firms manage regulatory risk and identify supportive operating environments.
Finally, the concentration of backtracking among financial institutions warrants attention. Banks and investors play a key role in funding the transition. Therefore, weakened commitments in the finance sector may affect the availability or cost of green finance products. Businesses should monitor lending criteria and investment policies rather than assume consistent support for climate-related projects.
Quality matters more than target announcements
The 2026 stocktake clarifies that climate commitments have entered a period of consolidation. Rapid expansion has slowed. However, widespread abandonment has not occurred. Consequently, the focus is shifting from target-setting to delivery.
For UK SMEs, this means that credible emissions reporting and evidence-based reduction plans are becoming essential. Public procurement frameworks already require carbon reduction plans under PPN 06/21. Similarly, many large corporate buyers now ask suppliers for emissions data and net-zero roadmaps. Therefore, businesses need to move beyond headline commitments and demonstrate actual progress.
Three priorities stand out. First, comprehensive emissions measurement including Scope 3 where relevant. Second, interim targets with clear milestones for 2030 or 2035. Third, transparent reporting that shows year-on-year performance. Our ESG compliance and carbon reporting services support businesses in meeting these requirements.
The stocktake also highlights the importance of independent verification. A target can remain formally unchanged while its emissions boundary is narrowed, its interim measures weakened or its delivery postponed. For this reason, credibility increasingly depends on third-party assessment and measurable outcomes rather than self-declared commitments.
Businesses should also consider the broader policy context. The UK government remains committed to its statutory net-zero target for 2050. Meanwhile, the EU continues to strengthen climate regulations. These frameworks create a long-term policy direction that supports investment in emissions reduction. However, the gap between commitments and required action remains substantial. Therefore, policy changes or new requirements are likely as governments seek to close this gap.
Where to find authoritative guidance and data
Businesses seeking detailed information on net-zero commitments and climate policy can access several authoritative sources. The Net Zero Tracker provides comprehensive data on countries, regions, cities and companies. It is maintained by the Energy and Climate Intelligence Unit, Oxford Net Zero, the NewClimate Institute and the Data-Driven EnviroLab.
The UK government's net zero strategy sets out the national policy framework. It includes sectoral pathways, investment plans and regulatory timelines. For businesses involved in public procurement, the PPN 06/21 guidance on carbon reduction plans explains supplier requirements.
The United Nations Framework Convention on Climate Change provides access to national climate plans, COP outcomes and the Paris Agreement text. For businesses tracking international developments, this resource offers the most comprehensive view of global climate diplomacy.
Finally, the European Parliament's climate briefings offer analysis of EU policy developments. These are particularly relevant for UK businesses trading with European customers or operating within EU regulatory frameworks.