Corporate America Races Ahead On Net Zero As White House Steps Back

GILLETTE, WY – JUNE 13: Heavy vehicles stop moving as a timed detonation brings down a wide coal face at the Buckskin Coal Mine, on June 13, 2006 in Gillette, Wyoming. The open pit Buckskin Mine is a medium size operation owned and operated by Kiewit Mining Group. The mine produces 20 million tons of low sulfur and low BTU coal per year. Wyoming’s Powder River Basin coal sells for on average $6.50 per ton compared with high sulfur, high BTU Appalachian coal, now at over $60 per ton. The coal is transported by rail east to St. Louis, Detroit, Chicago and eventually the eastern US or by barge down the Mississippi River for power generation. (Photo by Robert Nickelsberg/Getty Images)

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While the U.S. government has scaled back its formal net-zero ambitions, Corporate America is pressing forward. More than half of the largest U.S. firms now have plans to become carbon neutral, according to the 2025 Net Zero Tracker, which analyzes nations that are parties to the UNFCCC.

The Tracker shows that net zero is no longer just about cutting emissions—it’s now a matter of global competitiveness. Economic incentives match or exceed environmental and reputational ones. While Main Street companies are pushing forward on net zero, financial institutions are largely holding back, with major banks retreating from collective climate commitments. The study highlights eBay, Merck, and Goodyear as companies making a strong effort to eliminate all greenhouse gas emissions.

“U.S. companies know they need to keep pace with the EU, China, and other regions where climate policy is increasingly shaping competitiveness. Net zero is less a political battleground and more a race to secure future markets, investment, and jobs,” said Thomas Hale, professor of global public policy at the Blavatnik School of Government at Oxford University, in a release.

The good news is that commitments rose by 9% in one year; 304 major U.S. firms now signed on, totaling $12 trillion in revenue. But fewer than 1 in 10 meet the most basic credibility standards—covering all greenhouse gases, addressing supply chain emissions, publishing a plan and taking immediate action, and reporting annually. Most targets may appear promising on paper, but lack the key commitments to make them truly meaningful. Meanwhile, half of the sub-national governments and companies still have no plan at all.

Notably, some major brands—including Microsoft, Procter & Gamble, and Unilever—operate without Science-Based Targets initiative validation. The SBTi is an independent organization that assesses whether companies’ climate targets are consistent with keeping global warming below 1.5°C while ensuring that their own pledged reductions are credible and science-aligned.

At the same time, a third of companies studied by the Net Zero Tracker with carbon neutrality goals rely on nature-based solutions—paying rainforest nations to keep trees standing rather than decarbonizing operations or buying cleaner energy. That’s fine for now, but over time, they must invest in clean tech.

“This is 2025. If a major company, city, or state still has no target or plan for being part of a climate-safe future, you have to ask if they are risking their own economic and environmental opportunities, as well as the world’s,” said Steve Smith, executive director of Oxford Net Zero and CO2RE, in a release.

Banks Lag as Main Street Drives Climate Action

What exactly are eBay, Merck, and Goodyear doing right?

eBay has a bold goal to reach net-zero carbon emissions by 2045, confirmed by the Science-Based Targets initiative and aligned with the 1.5°C pathway. It aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 90% by 2030, compared to a 2019 baseline, aligning with the 1.5 °C target. It also aims to cut its Scope 3 emissions tied to transportation and distribution by 20% by 2030.

Meanwhile, Merck has committed to net-zero greenhouse gas emissions across global operations. The company aims to reduce Scope 1 and 2 emissions by at least 46% and Scope 3 emissions by at least 30% by 2030, using SBTi guidelines. It is implementing energy efficiency, renewable energy, and engaging suppliers.

Goodyear targets net-zero across its value chain by 2050, with interim reductions of 46.2% for Scope 1 and 2, and 28% for Scope 3 emissions by 2030. As of 2024, it achieved a 25.4% reduction in Scope 1 and 2 emissions and 9.7% in Scope 3 compared to 2019. The company focuses on energy efficiency, renewable energy, and sustainable product development.

These concrete, measurable targets highlight the difference between companies taking credible action and those with aspirational pledges. Credible targets cover all greenhouse gases and emissions scopes, include clear rules for offsets, require immediate action, and must report progress annually.

Several financial companies, including HSBC and Barclays, are reportedly withdrawing from the UN-led Net-Zero Banking Alliance, although they still hold individual 2050 net-zero targets and commitments to sustainability finance.

“Ten years post-Paris Agreement, net zero has become a widely accepted shared ambition and vision for companies, regions, and cities,” said Saskia Straub an analyst with the NewClimate Institute, in a formal statement. “Leading companies have already begun to implement robust plans to back up targets. The message is clear: it’s time for others to catch up or risk being left behind.”

The foot-dragging must stop. This year’s record wildfires—from 382,000 hectares in Spain to Arizona’s devastating blazes—along with floods and heatwaves, underscore the urgent need for immediate climate action. In the United States, the 2025 wildfire season has been destructive, with millions of acres burned and many structures lost.

Businesses will rise or fall based on the actions they take and how soon they execute them. Companies must act swiftly to preserve both international competitiveness and environmental obligations—the core components of the American spirit.