Is the net zero target really applied?

International consulting, audit, corporate finance, strategy and tax services company EY (Ernst & Young) has released EY Global Climate Action Barometer, which analyzes businesses in line with climate targets. Research was conducted with more than 850 companies in the global diameter from 50 countries and 13 sectors. Barometer shows that businesses participating in research have a plan for the ‘net zero’ migration of 64 percent, while only 12 percent of them are drawing gold by developing new transition plans or explaining existing plans. However, in the barometer, attention is also taken to the shortcomings that have a risk of exposing progress. Accordingly; the transition plan of a major part of the world’s largest companies is ready, yet, it’s not in force to support efforts to limit global temperature increases.

The use of carbon credit is increasing
68 percent of participating companies are indicated to evaluate the physical and transition risks arising in the process of carbonization, or directly from climate events. But only 17 percent of companies report financial effects of significant risks. This shows that physical exposure levels of climate change are not yet clear and measurable. 63 percent of companies with net zero targets are dependent on carbon loans. This means that the emissions tend to balance only instead of actively reducing emissions. In the research, carbon credit usage rate is observed that especially in the process of carbonization such as financial services (78 in the earth), transportation (69 on the earth) is high in the sectors that live difficulty in the process of carbonization. On the other hand, 34 percent of companies participating in research are highlighted by reconstituting climate targets by taking into account factors such as reduced financing or regulation uncertainty. These revisions are often resulted in weakening the targets (44 on the earth) or delaying target times. [

Could be governance deficiencies that may weaken the proxy]
] 92 percent of companies involved in research states that physical risks have completely analyzed their potential effects on their operations. However, only 44 percent of these companies express the measures that will help to manage and adapt the risks in question. Research also pays attention to effective governance deficiencies, a situation that can weaken climate change in many companies. Only 8 percent of the companies participating in the research are the board-level surveillance team for capital allocation, targeting at 21 percent and monitoring progress in 41 percent. Another EY analysis evaluated with barometer findings pay attention to the cost of inactivity in terms of businesses. The companies that do not address climate change risks are highlighted that their annual income can lose up to 15 percent.

[The first five steps that businesses who want to compete in climate action in work...
1. Businesses are ambitious but determined to be accessible and should be integrated into the basic strategies of climate targets by directing their capital into climate-related investments.
2. Businesses; governance structures have been developed a comprehensive, feasible transition plan with Paris Agreement-compatible emission reduction targets, carbon-freeization strategies, transition steps to sustainable products and services, transparent financing mechanisms, assumptions and dependency based on this plan.
3. Businesses have focused on using internal carbon price (ICP) as a strategic tool to minimize dependence on carbon loans and promote actual emissions reductions.
4. Businesses have been actively working with value chains by encouraging suppliers to identify clear-zero targets and develop transition plans to address coverage 3 emissions and beyond important challenges.
5. Businesses must adopt artificial intelligence in a responsible way.
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The companies that turn their action into action]
] EY Turkey Company Partner, Leader of Climate Change and Sustainability Services Ece Sevin said that EY Global Climate Action Barometer research: “Artan becomes more devastating than the traditional effects, the urgency of corporate climate action plans is more prominent than ever. According to EY Global Climate Action Barometer 2025, we see that progress in climate action is not evenly distributed on the sector and country basis. While some regions run rapidly in climate reporting and transition strategies, we can say that some regions remain behind due to resistance environment or different priorities. While the world continues to warm up, climate change brings together the need of a newer and cyclic economy for both people and planet. Moving from the fact that climate change also threatens for global financial stability; today we can express that companies that turn climate actions into action will be leaders of tomorrow and will stand out in competition. Our research findings also reveal that companies have yet limited progress in climate reporting and structural challenges encountered in concrete application processes are caused by incompleteness and lack of stress tests at maturity level with climate risk assessment. In this framework, we support businesses in every field from the process of carbonization to manage financial reporting and climate risks from the carbonization process to turn the conversion process into a strategic opportunity. "