Transition Finance Data: Insights from the Net Zero Tracker
In July, the Luxembourg Stock Exchange (LuxSE) announced the launch of a brand-new initiative which aims to support issuers in their transition journey and provide transparency to investors. The Transition Finance Gateway shines the spotlight on the exchange’s some 500+ non-financial corporate debt issuers across both conventional and sustainable bonds.
To mark the launch of our innovative Transition Finance Gateway, we sat down with John Lang, Project Lead at the Net Zero Tracker - one of the four data providers helping to power the Gateway with market-renowned climate transition data.
The NZT was launched in 2021 as a collaboration between the Energy & Climate Intelligence Unit, Data-Driven EnviroLab, NewClimate Institute and Oxford Net Zero. Its mission - track and assess net zero targets across the global economy, and demystify the landscape for non-specialists.
Since then, NZT has become a trusted resource for understanding who has pledged what — and how credible those pledges are. Our database tracks more than 4,000 entities, including every country, all regions in the 25 largest-emitting nations, and the world’s largest 2,000 publicly listed companies. We assess not just whether a net zero pledge exists, but how robust it is — based on the UN Expert Group’s integrity criteria. This includes what emissions are covered, the quality of plans, whether interim milestones exist, information on offsets, and details of good governance mechanisms.
Each entity profile summarises these features, enabling investors, journalists, policymakers and citizens to determine who is walking the talk, and who is not.
Credible transition plans are a cornerstone of a just, investable path to net zero. Without transparency on who is transitioning — and how — it becomes almost impossible to deploy capital effectively, or to distinguish climate leaders from laggards. Our data provides clarity and comparability, ensuring that capital flows to companies with genuine intent and viable strategies to decarbonise.
This is especially important now, as scrutiny increases from regulators, shareholders and the curious public. Data like ours empowers people to engage constructively and push for action based on evidence, not just marketing.
With NZT data now integrated into the Transition Finance Gateway, investors can assess the integrity of climate plans, enabling smarter portfolio decisions and engagement. Investors can also use our framework to structure transition finance products, such as sustainability-linked bonds, with more rigour and accountability.
Ultimately, our goal is to help investors allocate capital in a way that rewards demonstrable leadership and accelerates real-economy emission reductions.
Being featured on platforms like the Transition Finance Gateway also gives issuers an opportunity to demonstrate progress transparently. It’s a tool to engage with investors, customers and regulators in a consistent and comparable way.
What we’re starting to see is a shift from a binary green/non-green model toward one that recognises credible transition pathways. That’s positive, but it also calls for much more robust, entity-level information.
In the future, transition finance will drill deeper than just a smattering of KPIs. It will require full transparency on business models, capex plans, policy alignment and broader ‘spheres of influence’. Issuers that proactively disclose and tighten plans over time will be better positioned to attract capital and earn trust.
Our data helps lay the groundwork for that future — by showing what ‘good net zero’ looks like and calling out what doesn’t.
There’s no expectation to be perfect on day one, but you should be fully transparent. Make a public commitment. Disclose your emissions and plug data gaps. Set near- and long-term targets. Be honest about how you plan to get there. Investors and other interested observers should support transparency about genuine challenges, not spin or silence.
And remember: credible transition planning isn't just about managing risk. It’s about capturing this enormous opportunity and showing leadership as economic uncertainty grows globally. The transition is happening. Those that choose to lead will make the future.
To mark the launch of our innovative Transition Finance Gateway, we sat down with John Lang, Project Lead at the Net Zero Tracker - one of the four data providers helping to power the Gateway with market-renowned climate transition data.
Could you please tell us a little about the history of Net Zero Tracker and its creation?
The Net Zero Tracker (NZT) was born of necessity — a response to mounting global demand for transparency and accountability on climate targets. As corporate, national, and subnational net zero pledges surged from 2019 onwards, a gap emerged - many commitments lacked substance and credibility, and interested observers had no easy way to compare them.The NZT was launched in 2021 as a collaboration between the Energy & Climate Intelligence Unit, Data-Driven EnviroLab, NewClimate Institute and Oxford Net Zero. Its mission - track and assess net zero targets across the global economy, and demystify the landscape for non-specialists.
Since then, NZT has become a trusted resource for understanding who has pledged what — and how credible those pledges are. Our database tracks more than 4,000 entities, including every country, all regions in the 25 largest-emitting nations, and the world’s largest 2,000 publicly listed companies. We assess not just whether a net zero pledge exists, but how robust it is — based on the UN Expert Group’s integrity criteria. This includes what emissions are covered, the quality of plans, whether interim milestones exist, information on offsets, and details of good governance mechanisms.
What transition data does NZT provide?
NZT provides detailed, entity-level data on both the existence and quality of mitigation pledges, not just net zero targets. Specifically, we assess whether entities:- Have made public commitments to reach net zero and by when
- Cover all scopes of emissions (Scopes 1, 2 and 3)
- Set interim targets on the path to net zero
- Provide transparent reporting and regular updates
- Rely on carbon offsetting and to what extent
- Link targets to board-level oversight.
Why is this data so important?
Not all net zero commitments are created equal. There’s a big difference between making a net zero pledge and having a credible plan to reach it. Unfortunately, the market is still saturated with greenwashing and vague ambitions. The NZT helps users cut through that noise.Credible transition plans are a cornerstone of a just, investable path to net zero. Without transparency on who is transitioning — and how — it becomes almost impossible to deploy capital effectively, or to distinguish climate leaders from laggards. Our data provides clarity and comparability, ensuring that capital flows to companies with genuine intent and viable strategies to decarbonise.
This is especially important now, as scrutiny increases from regulators, shareholders and the curious public. Data like ours empowers people to engage constructively and push for action based on evidence, not just marketing.
How can investors use this data to finance the transition towards net zero by 2050?
Investors can use our data to identify which companies are taking the transition seriously — and which are not. Whether you’re an asset manager, pension fund, or ESG analyst, you need to know if a company’s climate claims are credible, particularly as climate risk becomes increasingly financial.With NZT data now integrated into the Transition Finance Gateway, investors can assess the integrity of climate plans, enabling smarter portfolio decisions and engagement. Investors can also use our framework to structure transition finance products, such as sustainability-linked bonds, with more rigour and accountability.
Ultimately, our goal is to help investors allocate capital in a way that rewards demonstrable leadership and accelerates real-economy emission reductions.
How can issuers use this data to transition towards net zero by 2050?
For issuers, NZT data provides a benchmark of how a company’s transition plan stacks up against sectoral or regional peers. It also acts as a guide: if your plan doesn’t yet cover Scope 3 emissions, include interim targets, or disclose governance arrangements, our assessment criteria shows you what’s expected.Being featured on platforms like the Transition Finance Gateway also gives issuers an opportunity to demonstrate progress transparently. It’s a tool to engage with investors, customers and regulators in a consistent and comparable way.
How do you see the financing of the transition developing in the future?
Transition finance is set to become a central pillar of sustainable finance, especially for high-emitting sectors and emerging markets. But to unlock its full potential, we need better data, convergence on standards and stronger accountability.What we’re starting to see is a shift from a binary green/non-green model toward one that recognises credible transition pathways. That’s positive, but it also calls for much more robust, entity-level information.
In the future, transition finance will drill deeper than just a smattering of KPIs. It will require full transparency on business models, capex plans, policy alignment and broader ‘spheres of influence’. Issuers that proactively disclose and tighten plans over time will be better positioned to attract capital and earn trust.
Our data helps lay the groundwork for that future — by showing what ‘good net zero’ looks like and calling out what doesn’t.
If you could put forward one call to action to issuers that have yet to start their transition journey, what would it?
Start now. Waiting for perfect information or the shadow of regulation to become reality is neither wise nor defensible. The risks of delay — financial, legal, reputational — are rising.There’s no expectation to be perfect on day one, but you should be fully transparent. Make a public commitment. Disclose your emissions and plug data gaps. Set near- and long-term targets. Be honest about how you plan to get there. Investors and other interested observers should support transparency about genuine challenges, not spin or silence.
And remember: credible transition planning isn't just about managing risk. It’s about capturing this enormous opportunity and showing leadership as economic uncertainty grows globally. The transition is happening. Those that choose to lead will make the future.
