(Bloomberg) -- When it comes to net-zero, a lot of companies are more talk than action.

That’s the conclusion of a new report from Climate Action 100+, an investor alliance with combined assets of more than $68 trillion, which shows that promises by major corporate emitters to achieve net zero targets are “not matched by the development and implementation of credible decarbonization strategies.”

The analysis, which looked at 159 companies with the largest carbon footprints, showed that 75% have now committed to achieve net zero emissions by 2050 or sooner across all or some of their emissions footprint, up from 69% in March; over a third of the companies have set long-term targets aligned with the Paris agreement target of 1.5C.

But in most cases, there’s a lack of  follow-through. The report found that while 82% of focus companies have set medium-term targets, only 20% of those targets cover all material scopes of emissions and are aligned with 1.5C. And though 53% of companies have a decarbonization strategy, only 19% quantify key elements of their plans as they relate to the major sources of their emissions, including Scope 3, which refers to a company’s entire value chain.

Corporate net zero targets “are often not supported by strategies to deliver them,” CA100+ said, and efforts to tackle Scope 3 emissions are largely absent.

The Intergovernmental Panel on Climate Change says net zero emissions are achieved when there’s a balance between greenhouse gas emissions pumped into the atmosphere, and emissions removed from the atmosphere over a specified time period. The UN-backed Race to Zero campaign considers individual companies or financial institutions to have achieved net zero when they have reduced their emissions in line with climate science and neutralized any remaining greenhouse gas pollution, possibly via the use of valid carbon credits.

“Now more than ever, we must focus our attention on getting companies to take real action, beyond just setting targets for their decarbonization efforts,” said Simiso Nzima, managing investment director of global equity at the California Public Employees’ Retirement System and a member of the CA100+ global steering committee. “The global climate risks from unfulfilled commitments are far too high.” 

Climate Action 100+ was formed in 2017 and now has about 700 members, including Amundi SA, BlackRock Inc. and HSBC Global Asset Management. The new analysis is the latest update from the Climate Action 100+ Net-Zero Company Benchmark.

The number of companies committing to reach net zero emissions continues to grow as businesses respond to public pressure and perceived economic or reputational opportunities in pledging to eliminate emissions. Delivering on those commitments will be essential in helping limit global warming.  Climate change has led to an increase of about 1.1C in global temperatures since pre-industrial times and is exacerbating extreme events such as heat waves and drought.

“Companies are making net zero commitments,”  said Rebecca Mikula-Wright, CEO of the Asia Investor Group on Climate Change and the Investor Group on Climate Change. “But investors want those companies to turn intentions into concrete short- and medium-term actions to provide the confidence they can get to net zero.” 

©2022 Bloomberg L.P.