A new report by the Science Based Targets initiative shows that corporate climate target-setting accelerated significantly in 2025, with companies across all major regions increasing adoption of validated science-based and net-zero commitments, bringing total participation to nearly 10,000 firms globally by the end of the year amid continued pressure from investors, supply chains and emerging regulatory frameworks.
The SBTi Trend Tracker 2025 found that the number of companies with validated science-based targets rose by 40% over the past year to 9,764 by December 2025, while validated net-zero targets increased by 61% over the same period. Total corporate participation in the initiative surpassed 10,000 companies in January 2026, reflecting continued expansion of emissions-linked corporate governance across both developed and emerging markets.
The data indicates that climate target-setting is becoming more deeply embedded in corporate strategy rather than remaining a voluntary sustainability exercise. Companies are increasingly using emissions reduction commitments to manage transition risks linked to energy costs, trade exposure and access to capital, particularly as financial institutions and large buyers tighten disclosure and environmental requirements across global supply chains.
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Asia recorded the fastest growth in 2025, with a 53% increase in companies setting validated targets and 1,216 new firms joining over the year. This nearly matched Europe’s absolute increase of 1,209 companies, signalling a gradual shift in the geography of corporate climate governance. Growth was concentrated in major manufacturing and export-oriented economies including China, Japan and India, alongside expanding adoption in Indonesia, Pakistan, Singapore and Thailand.
The report suggests that Asia’s rising share of corporate climate commitments is closely linked to its integration into global production networks. Export-oriented firms are increasingly aligning emissions reporting and reduction strategies with requirements imposed by multinational buyers, particularly in sectors such as electronics, automotive manufacturing and industrial materials, where carbon disclosure is becoming a condition of market access.
Europe continued to account for the largest share of companies with validated targets at 49% globally, followed by Asia at 36% and North America at 11%. While Europe remains the dominant region in absolute terms, the data points to a gradual rebalancing as adoption accelerates more quickly in Asia and selected emerging economies.
Africa and Latin America and the Caribbean recorded the next highest proportional growth rates, increasing by 48% and 42% respectively, although from a smaller base. The report links this trend to growing participation from companies seeking access to international capital markets, export finance and multinational supply chains, where emissions disclosure is increasingly required as part of due diligence and investment screening processes.
Despite faster percentage growth in emerging regions, concentration remains high in advanced economies. Japan led globally with 2,091 companies holding validated targets, followed by the United Kingdom with 1,363 and the United States with 943. These figures reflect stronger regulatory environments, more mature sustainability reporting systems and greater investor scrutiny of climate-related financial risks.
At the sector level, healthcare recorded the strongest growth in validated target adoption in 2025, followed by information technology and materials. The expansion in healthcare and technology reflects the increasing integration of climate targets into service-oriented and high-growth industries, while growth in materials highlights increasing participation from emissions-intensive sectors that are central to industrial decarbonisation efforts.
The report also shows that companies with validated targets are most heavily concentrated in major equity indices, including France’s CAC 40, Germany’s DAX 40 and the United Kingdom’s FTSE 100, followed by Japan’s Nikkei 225 and the S&P 500. This pattern suggests that large listed companies with greater exposure to international investors and capital markets are leading adoption, partly due to stronger expectations around disclosure, risk management and long-term sustainability planning.
Market analysts note that the increasing penetration of SBTi-aligned firms in benchmark indices reflects how climate governance is becoming integrated into mainstream financial valuation frameworks. Investors are increasingly incorporating emissions trajectories into capital allocation decisions, particularly in sectors exposed to transition risks such as energy, manufacturing and transport.
The Science Based Targets initiative said the expansion reflects continued integration of climate considerations into corporate decision-making, with companies using validated targets to manage transition risks, strengthen operational resilience and maintain competitiveness in global markets. It added that adoption continues to broaden across regions and sectors despite a more complex geopolitical and policy environment, suggesting that corporate climate alignment is increasingly being driven by market forces rather than regulatory mandates alone.
While the pace of adoption varies significantly by region and sector, the overall trajectory points to a structural shift in corporate behaviour, where emissions measurement and reduction commitments are becoming part of standard business planning. The report suggests that this shift is likely to influence investment flows, supply chain configuration and long-term industrial strategy, particularly in economies closely integrated into global trade networks.
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