Comparing alignment by EU and non-EU listed companies with the Net Zero Investment Framework’s maturity scale

Transition finance

Companies in the EU outperform the rest of the world in their decarbonization journey.  Our data shows that 14% of EU-domiciled companies are “aligned to a net-zero pathway” (as defined by the Paris Aligned Investment Initiative’s Net Zero Investment framework), compared with 3% of companies outside the EU.  While a majority (58%) of companies in the EU are still “not aligned” with a net-zero pathway, that compares favorably with 88% of listed companies elsewhere.

Companies represented by the MSCI Europe Investable Market Index (IMI), which captures large, mid and small cap representation across 15 Developed Markets countries in Europe. With 1,296 constituents, the index covers approximately 99% of the free float-adjusted market capitalization across the Developed Markets countries of Europe, as of July 31, 2024.

https://www.msci-institute.com/wp-content/uploads/2024/09/EU-vs-Non-EU-listed-companies-01.svg

Source: MSCI Sustainability Institute, based on constituents of the MSCI ACWI IMI, as of July 22, 2024