EY: There is a climate plan, but little real action

The EY Climate Action Barometer surveyed 860 companies in 50 countries. 64% of companies have a net-zero transition plan, but only a small number have made progress in implementing it. In the EMEIA region (Europe, Middle East, Africa, India), this figure is 88%, mainly due to EU regulations.

According to the research, less than half of companies align their climate goals with scientific guidance. Two-thirds of companies pursuing a net-zero strategy rely on carbon credits, especially in the financial and transport sectors; in the EMEIA region, this figure is 60%. In addition, many companies have scaled back their goals due to financing and regulatory difficulties.
According to EY, organizations that do not properly manage climate risks could lose up to 15% of their annual revenue.

The research also revealed that management oversight is lacking: only one in five leaders track targets and less than half monitor results.
Ákos Lukács, EY Climate Change and Sustainability Partner, emphasized: “Long-term planning strengthens companies’ resilience. A transition plan is needed that anticipates risks and adapts to a changing environment. Integrating climate goals into strategy, risk assessment and leveraging the potential of AI are key to future-proof success.”

The report found that while many companies have assessed climate risks, only 44% have specific adaptation measures in place, and less than a fifth report on financial impacts.

“Science-based targets and transparent reporting are essential. Companies that communicate openly about their progress build trust among their customers and investors,” added Ákos Lukács.