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Warren Buffett's Berkshire Hathaway has been pointed out for not having set a net-zero target. (Photo: Flickr)
The latest annual report from the international Net Zero Tracker indicates that the number of entities setting net-zero targets continues to rise at regional, city, and corporate levels.
However, over 40% of entities have not taken any action, including electric vehicle giant Tesla, Japanese gaming behemoth Nintendo, and Warren Buffett’s Berkshire Hathaway.
Regional net zero targets’ growth jumps
Since its inception in 2021, Net Zero Tracker has published comprehensive review reports. This year's report a total of 148 countries, with Taiwan and the EU, setting net-zero targets, a slight decrease of one country compared to last year. The number of participating regions grew significantly by 28%, followed by a 23% increase in corporate participation, while cities saw the smallest growth at just 8%.
The report found that when excluding national levels and focusing on 3,870 entities across regions, cities, and corporations, nearly 1,700 lacked carbon reduction targets, representing over 40%. Despite a clear increase in regional participation, the limited growth in city involvement highlights insufficient regulatory frameworks for mandatory net-zero targets in certain countries.
More Asian corporates participate net zero
On the corporate side, the number of companies without carbon reduction targets significantly decreased from 734 last year to 495 this year. However, notable companies leading low-carbon transitions, such as Tesla, BYD, and Japan's Shimano, as well as others like Fox Television, Nintendo, Hertz, and Berkshire Hathaway, have not proposed net-zero targets.
Among the 1,977 listed companies tracked in the report, nearly 60% have set net-zero goals, encompassing annual revenues of $31 trillion, a substantial increase of 130% compared to 2020.
The growth in Asian companies is particularly notable, with China increasing from 27 to 48 companies, Japan from 118 to 184, and South Korea nearly doubling its count, aligning with the growth trend of the Science-Based Targets initiative (SBTi).
The report attributes the increase in Asian corporate participation to strengthened decarbonization momentum in the region and an expanded scope of research by Net Zero Tracker, which now includes analyses in multiple languages, not just English.
Several local governments set net zero targets in Indonesia
Additionally, the report examines the net-zero progress of major carbon-emitting countries, including the U.S., China, and Brazil, while also assessing the performance of local governments within these nations. Indonesia and Japan are among the few countries where local governments are mandated to set net-zero targets.
In Indonesia, of the 38 provinces, only five have established climate goals, and three have set net-zero targets, all anticipated to be achieved earlier than the national goal of 2060.
Five provinces in Indonesia have set climate goals, with three of them establishing net-zero targets. (Chart: Net Zero Tracker report)
With a new government set to take office in October, Indonesia plans to establish a regulatory body responsible for managing green initiatives and carbon rights programs. The Deputy Minister of Environment and Forestry, Alue Dohong, recently stated in an interview with Nikkei Asia that Indonesia will sign a mutual recognition agreement with Japan to facilitate carbon trading between the two countries.
He also revealed that a second round of nationally determined contributions (NDCs) is being drafted, aiming for submission to the United Nations by 2035 with a clear emissions reduction target.
Source: Net Zero Tracker、Nikkei Asia
