Only 5% of Companies Disclose Physical Intensity Targets Assessable Against Net-Zero Pathways

A CDP data brief on sectoral physical intensities finds that only 276 companies — approximately 5% of disclosing companies — report intensity-based targets that can be effectively benchmarked against sector-specific net-zero pathways. The brief, published in March 2025, argues that standardised physical intensity metrics are essential for financial institutions seeking to credibly deploy transition finance.

Physical intensity metrics — such as tonnes of GHG emissions per megawatt-hour of power generated — are increasingly used by financial institutions to assess companies' progress against decarbonisation pathways and to underpin sustainability-linked finance products. An analysis of CDP voluntary disclosures in 2023 from over 5,700 large and listed companies shows that when companies are asked to report GHG intensities without sector-specific guidance, fewer than 20% use metrics mappable to International Energy Agency scenarios. However, when sector-specific questions are applied, 60% to 98% of companies in a given sector report the appropriate intensity metric.

Standard Chartered's use of physical intensity-based steel sector targets to provide a US$25 million transition trade finance facility for an Asian steel company illustrates the commercial application of these metrics. CDP data shows that over a quarter of companies report intensity-based targets, but fewer than half of these — 11% — use denominator metrics that can be mapped to IEA variables. Power sector analysis from 59 companies with assessable intensity targets found that half currently report physical intensities above the threshold required for 1.5°C alignment, while half of 2030 targets aim to reach below 150kg CO2e/MWh.

CDP recommends that financial institutions drive adoption of comparable intensity-based targets and support disclosure of associated metrics, particularly for transition finance. The brief highlights regional disparities in physical intensity performance, with companies exceeding benchmark values concentrated in Asia and Latin America, including India, China, Japan, and Brazil, where coal power remains significant. CDP plans to develop additional transition finance guidance ahead of COP30, with particular focus on enabling credible transition finance for entities in high-emitting sectors across emerging market jurisdictions.

Key figure — 276 companies (5%) with intensity targets assessable against sectoral net-zero pathways