Deconstructing corporate net-zero and climate neutrality targets in the German chemical industry

Abstract

ABSTRACT Companies are becoming ever more present actors in climate change governance and increasing numbers of mostly multinational companies are pledging to become greenhouse gas neutral, climate neutral, or to reach for net-zero emissions. This article deconstructs net-zero, greenhouse gas and climate neutrality targets of 51 chemical companies in Germany. A brief contextualization of companies as actors in climate change governance and an overview of the German chemical sector as an emission-intensive industry are given. Evaluation criteria for corporate greenhouse gas and climate neutrality targets are developed by comparing seven existing or emerging industry and non-governmental standards and guidelines for (corporate) net-zero, climate and greenhouse gas neutrality. The criteria are then applied to the climate and sustainability targets of 51 companies in the German chemical sector. Results show that the targets vary greatly in terms of their actual definition, the target year and covered emissions, the timeline and planned implementation measures. Only some companies underpin their targets with strategic decarbonization approaches while others rely heavily on offsetting their emissions. This heterogeneity highlights the need for unified assessment criteria and in-depth analysis of corporate climate strategies to rule out greenwashing. Recommendations for target definitions and minimum criteria are given.