Amid escalating climate challenges and mounting disruptions across global supply chains, corporate attitudes toward climate risk have undergone a fundamental shift. The latest report published in August 2025 by the Science Based Targets initiative (SBTi), titled SBTi Trend Tracker 2025, reveals an accelerating global green transformation already underway.
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（companies with SBTi commitments or targets cumulative, thousands／Image: CY. (Richard), Chen）
The latest findings reveal that nearly 11,000 companies across the globe have either set or committed to Science Based Targets (SBTi). Notably, the number of validated net-zero targets has tripled since the close of 2023, underscoring a dramatic acceleration in climate action. This surge goes beyond mere reporting; it demonstrates that sustainability has evolved into a central strategic focus for corporations worldwide.
Trend 1: Net-Zero Surge: Asia’s Climate Goals Evolve from Vision to Competitive Advantage
Companies are rapidly evolving in how they approach climate goal-setting, moving away from traditional compliance-based motivations driven by regulation or social expectations. Instead, organizations are embracing a strategic perspective where climate action is recognized as an opportunity for value creation and competitive differentiation. Rather than viewing climate initiatives as a financial liability, businesses now see them as catalysts for innovation, talent recruitment, enhanced brand reputation, and sustained long-term growth.
- Mainstreaming Net-Zero Targets: As of mid-2025, 38% of companies have set net-zero targets, compared to 17% in 2023. This increase indicates a shift from short-term objectives to a greater focus on long-term net-zero commitments among corporations.
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（Corporates with SBTi targets, cumulative, split by target type／Image: SBTi Trend Tracker）
- Market Capital as a Climate Barometer: SBTi targets now apply to over 40% of global market capitalization and a quarter of worldwide revenue. This signals that climate performance increasingly affects company financing and investment prospects. For investors, SBTi commitments are a key sign of corporate risk management and growth potential.
Trend 2: Green Shift in Motion: Asia’s Journey from Industrial Giant to Climate Champion
The report identifies Asia as a key driver of global climate action, noting a 134% increase in companies setting SBTi targets from late 2023 to mid-2025—the fastest growth worldwide.
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（Growth in cumulative companies with SBTi targets between end of 2023 and end of Q2 2025, by region, %／Image: SBTi Trend Tracker）
- Momentum from the “Four Asian Tigers” and China: The report notes China is leading in SBTi target adoption, followed by Taiwan, Japan, Thailand, Hong Kong, and South Korea. These economies are important in the global value chain, with significant Scope 3 emissions from their operations.
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（Growth in cumulative companies with SBTi targets between end of 2023 and end of Q2 2025, by territory, %／Image: SBTi Trend Tracker）
- Activating the Supply Chain: Asian firms are urging suppliers to reduce emissions, supporting multinational brands in controlling carbon footprints and achieving net-zero targets.
Trend 3: From Liability to Leadership: Asia’s Industrial Giants Embrace Net-Zero for Growth
Once considered high-emission and challenging to decarbonize, the industrial sector is rapidly advancing sustainability. Manufacturing, consumer discretionary, and materials industries are leading the adoption of SBTi targets, marking a major move toward climate leadership.
- Industry Front-Runners: The industrial sector leads all other industries in the total number of companies setting SBTi targets, accounting for approximately one-third of the global total. Notably, over half of these targets were set in 2024 and the first half of 2025, indicating a significant acceleration in the pace of transformation.
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（Companies with SBTi targets at the end of Q2 2025, by sector, by year first target set／Image: SBTi Trend Tracker）
- From Carbon Reduction to Innovation: These industries show that climate ambition drives technological progress, process improvements, and new business models. By making climate goals central, companies develop solutions for changing markets and stakeholder needs.
Navigating the Sustainability Surge: Three Corporate Strategies to Stay Ahead of the Curve
- Strategic Integration Beyond Sustainability Reporting
Climate action must evolve from isolated sustainability initiatives to board-level strategic agendas. Companies should reassess their business models, incorporate climate risks and opportunities into long-term planning, and establish cross-functional task forces to ensure alignment across finance, operations, procurement, and other key departments.
- Activating the Supply Chain Through Partnership
The supply chain is a critical battleground for achieving net-zero. Organizations should implement mechanisms for supplier emissions data collection and management, and support partners through training, technical assistance, and even financial incentives. This shift from control to empowerment can significantly enhance supply chain resilience and competitiveness.
- Embracing Innovation: Turning Climate Goals into Growth Drivers
The transformation of high-emission industries proves that climate action and business growth are not mutually exclusive. Companies should invest in R&D to explore low-carbon technologies and materials, applying these innovations to product design and service development. This approach opens new markets and positions businesses as leaders in the green economy.
Beyond the data, the SBTi Trend Tracker outlines a clear blueprint: despite rising global uncertainty and a slowdown in sustainability progress, the green transformation is entering a phase of rapid acceleration. For corporate organizations, this is a pivotal moment to shift from reactive compliance to proactive leadership. This transformation is not only about addressing the climate crisis—it is about securing a resilient position and long-term competitive advantage in a future defined by both challenges and opportunities.
Sub-editing: SC. (Tracy) Ni
References：Science Based Targets - SBTi Trend Tracker 2025
Further Reading:
Sustainability Insights: Trust on the Brink! Navigating the Green Fog of Deception and Silence.
Sustainability Insights: Beyond DEI Backlash: TISFD Ignites the Social Resilience Measurement Battle
