Investors say many companies with some of the highest greenhouse gas emissions rates in the U.S. lack clear climate targets and, in some cases, are using nebulous climate-related goals to pad CEO pay. The fuzzy carbon emissions targets hurt the world’s efforts to avoid climate change and create poor incentives for CEOs to meet their environmental commitments, according to researchers.

Scientists warn that without further action to limit carbon emissions, Earth is on a path to experiencing a warming of 2.8° Celsius over the course of this century, resulting in an acceleration of extreme weather patterns such as “flooding, drought and wildfires, causing food shortages, health problems and damage to ecosystems and human habitats.” All of this may drive internal displacement and migration around the world, according to a 2022 report from the United Nations Environment Program (UNEP).

Given the urgency, experts expect policymakers and investors to continue to put pressure on boards and compensation committees to structure pay packages tied to clear carbon emissions-reduction targets for 2030 and beyond.

Agenda – Investors Cry Foul on Emissions Reduction Targets