Inaccurate financial strategies and questionable disclosures regarding corporate environmental efforts spark debates on the need for regulatory oversight in corporate sustainability measures
News Article: Corporate Climate Commitments Fall Short, According to CCRM Report
The Corporate Climate Responsibility Monitor (CCRM) 2025 report has revealed that the climate commitments of global brands in the technology, fashion, automotive, and agrifood sectors are falling short of the mark, with significant gaps in transparency, ambition, and alignment with deep emission reduction pathways.
The top performing companies in this year's CCRM were all headquartered in the European Union, where large companies are required to disclose their environmental and social impacts. However, the report found that corporate climate commitments generally lack credibility and effectiveness in meeting the Paris Agreement 1.5°C goal.
In the technology sector, companies like Amazon, Apple, Google, Meta, and Microsoft fall short of credible leadership, with outdated climate strategies that do not match the speed and scale of the required transition. However, Google and Microsoft are recognised as signatories of the 24/7 Carbon-free Energy Compact, promoting more granular renewable energy accounting.
The fashion sector shows mixed results. Adidas, Inditex, and H&M Group show progress by disclosing critical data such as material volumes and supply chain energy use, and have made moderate climate commitments with some initial steps like renewable electricity procurement. However, no fashion company achieved a “reasonable” or “high” rating for climate strategy integrity due to missing electrification plans and continued reliance on unsustainable energy sources like biomass or fossil gas. Lululemon and Shein show weaker or very weak commitments.
The automotive sector shows significant shortcomings. Toyota’s decarbonisation targets are not aligned with 1.5°C, it lacks a phase-out commitment for internal combustion engines, and its emissions increased by 33% from 2021 to 2023.
In the agrifood sector, Danone stands out by setting a credible methane emissions reduction target for milk production and a food loss and waste target, though it lacks plant-based protein targets. Overall, the agrifood sector’s progress is patchy and insufficient to reach 2030 climate goals, mirroring concerns across other sectors.
The report also emphasised the need for a binding legislative and regulatory framework to set the direction for individual sectors and the economy as a whole, while voluntary standards should focus more on enforcement and measurable impact. It recommended that target-setting frameworks require companies to set transition-specific targets, such as food firms shifting to plant-base food or automakers producing more EVs.
The report noted that standard setters should oblige agrifood companies to set separate targets for carbon removal and reduction to bring greater transparency to the sector. None of the agrifood companies in the report had clear commitments to transition from animal to plant-based protein.
The investigation revealed patchy progress by the world's largest firms in the technology, fashion, automotive, and agrifood sectors towards 2030 global climate goals. Across these sectors, the CCRM highlights widespread issues such as misleading accounting practices, irregular disclosures, and a gap between pledged intentions and actual action.
While some examples of good practices exist (like Inditex explicitly disclosing use of carbon removals or credits), most companies’ business models remain misaligned with the necessary rapid and deep emission reductions demanded by the Paris Agreement 1.5°C target. The report called on sustainability frameworks to prioritise 24/7 matching of renewable electricity procurement, a commitment to ensure that every kilowatt-hour of electricity consumed is matched with carbon-free electricity at every hour of every day.
Regulators are called for to create an environment where corporate climate action is a business necessity rather than a voluntary side job. The report also recommended that target-setting frameworks require companies to set transition-specific targets, such as food firms shifting to plant-base food or automakers producing more EVs.
[1] CCRM (2025). Corporate Climate Responsibility Monitor 2025. Retrieved from www.ccrm.network [2] CCRM (2025). CCRM 2025: Climate commitments in the technology, fashion, automotive, and agrifood sectors generally lack credibility and effectiveness. Retrieved from www.ccrm.network/blog [3] CCRM (2025). CCRM 2025: Fashion sector progress is mixed, but no company achieves a high or reasonable level of integrity. Retrieved from www.ccrm.network/blog [4] CCRM (2025). CCRM 2025: Automotive sector commitments are critically insufficient. Retrieved from www.ccrm.network/blog [5] CCRM (2025). CCRM 2025: Agri-food sector progress is patchy and insufficient. Retrieved from www.ccrm.network/blog
- The CCRM 2025 report highlights the inadequacy of corporate climate commitments, particularly in the technology, fashion, automotive, and agrifood sectors, as they fall short of deep emission reduction pathways.
- Google and Microsoft, technology sector companies, are recognized for their commitment to renewable energy through the 24/7 Carbon-free Energy Compact, but are still criticized for outdated climate strategies.
- In the fashion sector, while companies like Adidas, Inditex, and H&M Group disclose critical data and make moderate climate commitments, they lack electrification plans and continue relying on unsustainable energy sources.
- Toyota's decarbonisation targets in the automotive sector are not aligned with the 1.5°C Paris Agreement goal, and it lacks a phase-out commitment for internal combustion engines.
- In the agrifood sector, while Danone sets credible methane emissions reduction targets and food loss and waste targets, it lacks plant-based protein targets, and there is a lack of clear commitment to transition from animal to plant-based protein across the sector.
- To address these issues, the report calls for a binding legislative and regulatory framework, an emphasis on enforcement and measurable impact in voluntary standards, and setting transition-specific targets for sectors like the agrifood and automotive industries. The report also recommends increasing transparency by obliging agrifood companies to set separate targets for carbon removal and reduction.
