Insights
Climate Action

The net zero credibility gap – what is it and why should investors care?

The net-zero credibility gap is the gap between net-zero pledges and credible actions to implement plans. This gap exists at country and corporate level. We explain why it is important for investors.

Author
Head of Sustainability Insights & Climate Strategy
Girl looking at VR

Duration: 1 Min

Date: 30 Jun 2023

Simply, the net-zero credibility gap is the gap between net-zero pledges and credible actions to implement plans. It exists at both country and corporate level. This gap matters to investors who aim to take a forward-looking view on where carbon emissions will be in the future in order to identify credible transition leaders for investment. To do that, investors should not simply take stated carbon targets at face value - they need to assess the credibility of these targets. This is what drives the transition to net zero with real world impact.

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