The Science-Based Target Initiative explains that to keep global warming well-below 2°C, countries and companies must achieve net zero greenhouse gas emissions no later than 2050. We assess a company's alignment with this objective and provide a score of 1 if the company has declared a net zero target year before 2050 or can demonstrate that they have already achieved net zero emissions. If our analysis finds no evidence of an aligned net zero target, the company will not receive any points.

We award 1 point only if the sustainability report clearly states that the company is aligned with the Paris Agreement or aligned with limiting warming to 1.5°C or “well below 2°C.” If this alignment is not stated directly and unambiguously, the score is 0 — we don’t infer or assume. Clear Paris-aligned wording matters because it reflects measurable, science-based targets rather than general climate ambition. Research shows that firms with explicit Paris-linked goals are more likely to adopt credible transition planning and transparent reporting.

We award 1 point if a company clearly sets a net-zero target for Scope 1 and 2 emissions by 2035 or earlier, or if it explicitly discloses a baseline year (between 2015 and the present) that is directly linked to its emissions reduction targets. If neither is stated, the score is 0. Clear baseline years are important because they allow progress to be measured and tracked over time. Research shows that companies with transparent baselines and targets are more accountable and more likely to achieve real emissions reductions.

We award 1 point if a company has a clear net-zero target for Scope 1 and 2 emissions by 2035 or earlier, or if it has set an interim emissions-reduction target within 5–10 years of the present, in line with SBTi-recommended timeframes. If no near-term target exists or the timeline is unclear, the score is 0. Short-range goals are important because long-dated pledges often lack credible pathways to delivery. Research shows that companies with well-defined interim targets demonstrate stronger action and accountability over time.

The International Energy Agency models a net zero future, assuming a drastic increase in renewable and clean energy consumption. The private sector’s transition to renewable energy is a crucial factor in the achievement of decarbonisation. If a company currently uses, or declares a commitment to procuring, 100% renewable energy, GreenWatch assigns a score of 1. If no renewable energy commitments are identified, no points will be awarded.

Decarbonisation requires a concerted and unambiguous achievement of a legitimate reduction in emissions. Carbon offsets and credits can provide a transitional reduction in a company’s overall emissions. However, inconsistent accounting methodologies, poor supply chain transparency and the potential for offsets to stymy genuine decarbonisation efforts exacerbate the risk of missing a net zero future when these tools form an integral part of a company’s sustainability strategy. Therefore, until a verifiable system is introduced to regulate carbon offsets, GreenWatch will assign 1 point for companies that do not use offsets. If a company uses carbon offsets as part of their strategy, it remains prudent to award zero points.

Planning and provisioning for a range of warming scenarios is a strong way for companies to demonstrate their climate change preparedness. EY explains that the inclusion of climate scenario planning provides investors with insight into how a company plans to respond to low, medium and high warming scenarios across their operation, supply chain and broader corporate strategy. If a company provides a scenario analysis of at least two warming scenarios, GreenWatch assigns a score of 1. If the company does not include any warming scenario planning, no points will be awarded.

You can’t manage what you can’t measure. A transparent approach to emissions reporting is an essential way to diagnose the severity of a company’s decarbonisation requirements. SBTi (4.2) requires a comprehensive assessment of a company’s Scope 1, 2 and 3 emissions. If a company provides data on their emissions in their sustainability report, GreenWatch assigns a score of 1. If the reporting is incomplete or not available in the sustainability report, no points will be awarded.

All companies produce waste, whether it’s a multi-national mining conglomerate or a sole-trader working from home. UN SDG 12 (Responsible Consumption and Production) emphasises the importance of reducing waste drastically by 2030. Setting a quantifiable target with a future date and a percentage decrease allows stakeholders to determine how serious a company is about its waste reduction efforts. If a company meets the above criteria, GreenWatch assigns a score of 1. If the company does not meet this criteria, no points will be awarded.

Similar to the emissions inventory, it is important for companies to provide transparent reporting on their waste production. This should ultimately provide more context for the waste targets set by the company and allow readers to gain a better understanding of the company’s sustainability ambitions. If a company reports on their waste production, GreenWatch assigns a score of 1. If the company does not report on their waste, no points will be awarded.