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How listed companies are making progress towards Net Zero

This week, as we are in the midst of COP 26, we would like to reference a quarterly report MSCI publishes on how listed companies are making progress towards Net Zero. The most recent one was published in October, and it has some interesting highlights we want to share with you below. We recommend reading the full report if you want to see tables on the 10 largest emitters in MSCI ACWI IMI, the 15 largest listed companies by market cap in the MSCI ACWI IMI that improved their emissions disclosure, MSCI’s estimate of the 10 largest emitters that have not reported emissions data, and the 10 companies in the MSCI ACWI IMI that have published the most thorough corporate decarbonization targets.

  • “Less than half (43%) of listed companies align with a 2°C temperature rise, which falls short of the Paris Agreement goal of keeping warming well below 2°C, preferably to no more than 1.5°C, above pre-industrial levels.”
  • “Less than 10% of listed companies align with a 1.5°C temperature rise, which science tells us offers the best chance of averting a climate disaster.”
  • “Some sectors are running hotter than others — the energy, materials and utilities sectors emit more and may be harder to decarbonize than sectors such as health care, financials and communication services. But there are high-emitting companies in every sector.”
  • “Though companies in developed economies are projected to become more carbon efficient than those in emerging economies, no region yet aligns with the Paris Agreement target.”
  • “Gaps also remain in companies’ disclosure of their carbon emissions. Some companies are broadening their emissions reporting and setting decarbonization targets that align with global goals. Others have yet to disclose their emissions at all.”


The situation surrounding climate change is not only in the hands of publicly listed companies (not even close), but according to the CDP, over 30% of global emissions come from companies who are funded by institutional investors.

The situation in Mexico is even worse than average. The Climate Action Tracker ranks the current policies and action as highly insufficient and based on the fair share the country should take on, as critically insufficient. This should come as no surprise given the public agenda is far from pushing clean energy development. As for corporate commitments, there are not many, but here are four good examples of companies leading the way within their industries in the fight against climate change:

  • Coca Cola FEMSA – the first Mexican company to align its emission targets with the Paris agreement under Science Based Targets’ framework, it plans to reduce 50% of Scope 1 and Scope 2 emissions and 20% of its value chain emissions by 2030. It is also committed to using 100% renewable energy.
  • Cemex – plans to reach Net Zero by 2050, reducing 40% of its emissions by 2030. Its goal is aligned with Science Based Targets, and the company is part of Business Ambition for 1.5°C.
  • Banorte – committed to reducing 100% of its absolute CO2 emissions by 2050 and 50% of them by 2030. Part of the Net Zero initiative of the Banking Alliance and aligned with Science Based Targets.
  • Bimbo – committed to Net Zero Carbon Emissions by 2050 with three intermediate goals: eliminating Scope 2 by 2025, reducing 50% of Scope 1 or direct emissions and 28% of Scope 3 or other indirect emissions, by 2030. The first Mexican food company to commit to Business Ambition for 1.5°C and join the UN’s Race to Zero Campaign. Targets were validated by Science Based Targets.


There are other companies that are aligned with Science Based Targets (Criotec, America Movil, GCC, Orbia, FUNO, and Nemak). Some of them are still in the process of setting formal targets (companies have 24 months from the moment they commit to have their targets approved by Science Based Targets), while others have set targets which not necessarily take them all the way to Net Zero, but to an emissions level that is still in line with the 1.5°C warming path.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.



CEO, Miranda ESG

Contacts at Miranda Partners

Damian Fraser
Miranda Partners

Marimar Torreblanca