TPI report finds 30% of global firms aligned with 1.5C scenario

On September 17, 2025, the Transition Pathway Initiative released its State of the Corporate Transition 2025 report, finding 30% of 2,000 assessed global companies now align with the 1.5C scenario, up from 9% in 2020. The report, which shows electricity and auto sectors cutting emissions nearly five times faster than peers, gives Indian high-emitting firms and investors a benchmark for credible transition planning.

On September 17, 2025, the Transition Pathway Initiative (TPI) released its sixth State of the Corporate Transition report, assessing climate performance and governance across 2,000 of the world's largest publicly listed corporations. It found 30% of companies now align with the long-term 1.5C scenario, a triple-fold increase from 9% when assessments began in 2020. The average Management Quality score reached 3 out of 5. A backward-looking analysis reviewed emissions-intensity trends across eight high-emitting industrial sectors since 2020.

The report affects high-emitting sectors and the investors who fund them. Electricity generation and automotive sectors led, reducing emissions intensity nearly five times faster than peers such as cement and steel, with automakers prioritising market-ready solutions like accelerated electric vehicle production. Oil and gas made the least progress toward a Paris-aligned trajectory, marking it for engagement, while many airline firms still relied on unproven net-zero technologies. The TPI Centre evaluated decarbonisation technological readiness across 72 major companies in eight high-emitting sectors.

Companies should translate net-zero targets into detailed, actionable transition plans, the report's identified next phase, and improve on the average Management Quality score of 3 out of 5. Oil, gas, and airline firms in particular should prioritise credible, technology-backed plans to secure long-term capital support. Investors should use the data to direct capital toward the highest-performing firms and demand evidence of transition-plan execution, distinguishing credible corporate plans from abstract announcements as they assess transition risk.

Key figure — Climate alignment: 30% of 2,000 firms aligned with 1.5C scenario, up from 9% in 2020