RIYADH: Net-zero targets have been set by almost half of all major listed companies, but just 4 percent meet UN guidelines, a new report has revealed. Research released by independent data consortium Net Zero Tracker showed that 1,003 relevant firms – more than 40 percent – have made the environmental commitment, up from 702 in June 2022. The report, which included participation from Oxford University, the Energy and Climate Intelligence Unit, and the Data-Driven EnviroLab, underscored the urgent need for these firms to enhance the credibility of their mitigation targets to align with the objectives outlined in the Paris Agreement. This international treaty on climate change, established in 2015, calls on signatories to work toward limiting the global temperature increase to 1.5°C above pre-industrial levels. John Lang, project lead at Net Zero Tracker, said: “A clear line in the sand on net zero has surfaced. Countless net zero targets are credibility light, but now we can say for certain that most of the world’s largest listed companies are on the right side of the line on net zero intent.” He added: “With credible net zero target-setting a proxy for forward-thinking, future-proofing companies, it begs a simple question: are the firms we’re investing in, working for, and buying from on the right or wrong side of the line?” A closer look at the companies that have set net zero targets reveals that only 37 percent of them include Scope 3 emissions, which are tied to a corporation’s value chain. The report further added that an even smaller fraction, just 13 percent, establish quality standards for the utilization of carbon offsets. Earlier in October, the International Energy Agency warned that stronger energy policies are required to limit global warming and to ensure a greener future. The IEA also added that the global temperature could rise by 2.4 degrees Celsius this century without substantive policy changes worldwide. According to the agency, the share of fossil fuels in the global energy supply is expected to decline to 73 percent by 2030 from 80 percent now.