U.S. companies are dropping climate targets, Harvard data reveals

A new database from Harvard researchers shows that U.S. companies are pulling back on climate commitments. The study tracked companies in the Russell 3000 (a group covering 98 percent of U.S. stock market value) over 25 years and found the number with climate targets peaked in 2022 at 1,140 — about a third of the group. That number held roughly steady in 2023, then dropped by 79 companies in 2024, the most recent year with data.

Researchers point to a few reasons for the decline. One is pressure from Republican attorneys general who have investigated ESG investing and climate nonprofits, which one researcher said has had a "chilling effect" on some companies. Another is that many corporate goals were modeled on government targets, like President Biden's 2021 pledge to cut U.S. emissions in half by 2030 — so when the political mood shifted, company goals shifted too. A third factor is that the 2022 Inflation Reduction Act, which offered financial support for cutting emissions, has since been largely rolled back by the current administration, leaving some companies with less incentive to keep their pledges.

This is a story about corporate behavior, not a program or rebate that affects your house directly. It does not change any home energy incentives or rules. But it is a sign of how the broader political and business climate around clean energy is shifting, which is useful context if you are watching for how federal support for home energy upgrades might change in the future.