Breaking Down Corporate Net-Zero Climate Targets

Critically assessing companies' decarbonisation targets requires breaking them down into individual components, such as target types and units, the boundaries for the emissions they cover, and associated timelines. The lack of uniformity can make comparison a challenge. This guide from MSCI introduces an analytical framework to help you evaluate climate targets across three key dimensions: comprehensiveness, ambition, and feasibility. This framework will be particularly helpful to institutional investors who are trying to better understand the credibility of climate commitments to better mitigate climate-related risks in their portfolio.