Companies around the world are increasingly committed to cutting their greenhouse gas emissions to slow and ultimately reverse climate change.

One indicator is the number of companies that have set emissions targets as part of the Science Based Targets initiative, or SBTi, a global nonprofit organization. That number grew from 164 companies in late 2018 to over 6,600 by November 2024. And thousands more have committed to lower their emissions.

It’s not always a smooth road, however. Some of those companies – including big names like Microsoft and Walmart – have had to pull back on some of their SBTi commitments.

We study the history of SBTi pledges to understand these commitments and what can undermine them. We believe there is more to the story of these pullbacks than meets the eye.

To understand corporate climate commitments, let’s start with the concept of “net zero.”

The Paris Agreement, an international treaty on climate change, aims to limit global warming to well below 2 degrees Celsius (3.6 Fahrenheit) and ideally to 1.5 C (2.7 F). Meeting the more ambitious target of 1.5 C will require reaching net-zero greenhouse gas emissions by around 2050.

Net zero is the point at which the amount of greenhouse gases released into the atmosphere is balanced by greenhouse gases removed, either through natural sources like forests or technologies such as carbon capture and storage.

The Science Based Targets initiative, developed alongside the Paris Agreement in 2015, provides a framework to help companies align their efforts with the 1.5 C goal.

To join the initiative, companies begin by signing a letter of commitment to set near-term (2030) and long-term (2050) targets for reducing their emissions. Companies have 24 months to develop targets that adhere to SBTi guidelines. If the targets are validated and approved by........

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