An increasing number of companies are setting decarbonization goals, though achieving these targets remains a significant challenge. According to Chitra Hepburn, MSCI's Head of ESG and Climate Business for Asia Pacific, realizing carbon neutrality hinges on two main factors: technological innovation and its large-scale application, both requiring substantial financial support.
Furthermore, achieving carbon neutrality necessitates a range of tools, data, and analytical research to bridge the gap between investors seeking green opportunities and publicly listed companies looking for financing to scale up.
Despite challenges in the transition to carbon neutrality, progress has been made. Data from the MSCI Target Scorecard shows a positive trend: in 2019, only 5% of companies in the MSCI China Index had announced decarbonization goals. By 2023, this figure rose to 22%. Some companies not only set ambitious targets but also demonstrated credible capabilities in achieving these goals, showcasing significant advantages in the pursuit of decarbonization.
