Companies need to back up their climate ambitions with action and assurance – here’s how

The author calls for CEOs to move beyond distant net-zero targets by committing to a 45% emissions reduction by 2030 and adopting a common, global set of sustainability standards. The text highlights the need for third-party assurance to prevent 'empty promises' and supports the IFRS Foundation's work in developing an international sustainability reporting framework. It notes that while ESG assets reached $37.8 trillion in 2020, the lack of standardized metrics complicates progress comparison, urging regulators and businesses to converge on a single set of reporting rules.

• There is a significant discrepancy between corporate climate ambitions and actual implementation, where net-zero targets for 2050 are considered meaningless without supporting policies and immediate actions.
• To align with the 1.5°C goal, global emissions must be reduced by 45% from 2010 levels by the year 2030.
• The current landscape of ESG reporting is fragmented and voluntary, which hinders the ability to compare corporate progress; consequently, there is a call for a single, global set of sustainability standards verified by third-party auditors.
• Various international bodies and regulators are moving toward mandatory and standardized climate disclosures, including the IFRS Foundation, IOSCO, the US SEC, the European Commission, and G20 finance ministers via TCFD guidelines.
• Investment in ESG assets grew significantly to $37.8 trillion in 2020 and is projected to represent one-third of all assets under management by 2025.

APA

Thomas, F. V. H. B. (2021). Companies need to back up their climate ambitions with action and assurance – here’s how. World Economic Forum. https://www.weforum.org/stories/climate-action/companies-need-to-back-up-their-climate-ambitions-with-action-and-assurance-cop26-esg-environmental-social-governance-metrics/

Chicago

Thomas, Frans van Houten, Bill. Companies need to back up their climate ambitions with action and assurance – here’s how. World Economic Forum, 2021. https://www.weforum.org/stories/climate-action/companies-need-to-back-up-their-climate-ambitions-with-action-and-assurance-cop26-esg-environmental-social-governance-metrics/.

Wikipedia

{{cite press release |last1=Thomas |first1=Frans van Houten, Bill |title=Companies need to back up their climate ambitions with action and assurance – here’s how |publisher=World Economic Forum |date=2 November 2021 |url=https://www.weforum.org/stories/climate-action/companies-need-to-back-up-their-climate-ambitions-with-action-and-assurance-cop26-esg-environmental-social-governance-metrics/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{thomas2021companies, author = {Thomas, Frans van Houten, Bill}, title = {{Companies need to back up their climate ambitions with action and assurance – here’s how}}, publisher = {World Economic Forum}, year = {2021}, month = nov, url = {https://www.weforum.org/stories/climate-action/companies-need-to-back-up-their-climate-ambitions-with-action-and-assurance-cop26-esg-environmental-social-governance-metrics/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }