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

By: Trademagazin Date: 2025. 12. 02. 11:46

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While many companies have climate plans, actual action is lacking. According to recent research by EY, the majority of the world’s largest companies are not sufficiently prepared to limit global warming.

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.