Companies know that climate risk is a business risk. Beyond projections of nearly $600 billion in annual losses for listed companies by 2035, rising ambitions to curb greenhouse gas emissions underscore the growing importance of credible climate commitments for businesses and their stakeholders.
Turning climate targets into credible plans
The growing number of emissions reduction targets has also increased the necessity of creating plans to reach them. While a 2024 Ernst and Young survey reported 83% of companies having short-term climate targets, less than half published a climate transition plan. As with any business plan, climate transition plans ensure that leadership is putting the time and resources now necessary to reach its sustainability goals later. Even more, detailed plans provide the framework for companies to report progress and positive returns on climate adaptation and resilience investments.
Green Century has been holding companies accountable for achieving their climate targets for several proxy seasons. Since 2023, we’ve negotiated agreements with five semiconductor companies to disclose key elements of their climate transition plans. These victories included NVIDIA setting emissions reduction goals across its value chain and sharing initiatives to achieve them, and Intel disclosing its inaugural, stand-alone plan outlining net-zero and supplier emissions reduction pathways. In the last proxy season, we built upon this work by engaging nine companies on their climate transition plans and securing two new commitments to publish them.
Green Century drives laggards toward leadership
While some corporations are paring down their climate reporting, others are advancing their carbon cutting efforts. Businesses reporting climate transition plans to the Carbon Disclosure Project grew 44% between 2022 and 2023. This increase is likely due to the recognition that insufficient reporting obscures exposure to key environmental risks, signaling a company may be unprepared for supply chain disruption, transition risk, and physical risk in a rapidly changing climate and economy.
This year, Green Century has successfully urged companies to step up their climate policies and plans. We pressed Jack in the Box to outline steps to reach its new climate commitments, and Green Century’s resolution at Tractor Supply Company pushed the company to assess new opportunities for energy-efficiency projects across its 2,300 stores. With renewables and energy efficiency contributing to cost cutting for 82% of company respondents in a 2025 Boston Consulting Group survey, ongoing decarbonization is a financial opportunity for businesses and their investors.
Despite this, some companies continue to fall behind. Green Century filed climate transition plan proposals at Verizon and Harley-Davidson. Both companies have ambitious, science-based targets and 2050 net-zero commitments. At the same time, neither company published a sustainability report in 2025, with Harley-Davidson not disclosing since 2023. Not only do these major emitters lack forward-looking actions to meet current goals, but they also fail to provide updated information on their climate strategies, challenges, and successes. Investors will vote on these Green Century proposals in May.
In a world where climate risk is economic risk, transition planning is not only about reducing company costs but also securing durable growth and safeguarding long-term portfolio health for investors. Businesses must continue developing clear, credible climate transition plans to capitalize on strategies that reduce emissions and drive returns.
—Giovanna Eichner, Shareholder Advocate