Corporate climate targets are typically assessed against global decarbonisation pathways, overlooking heterogeneous national policy contexts that shape companies’ transition risks and opportunities. Analysing 52 countries’ electricity sector strategies confirms substantial variation in national decarbonisation trajectories. We evaluate the emissions targets of 65 power companies operating in 19 countries with suitable national and corporate data against three benchmarks: NDC-derived pathways, a global 1.5 °C normative pathway, and national 1.5 °C normative pathways. Unambitious corporate commitments jeopardise the achievement of national plans in 14 countries. If governments implement their strategies, misaligned companies face heightened transition risks. However, because NDCs lack 1.5 °C alignment, using them as benchmarks risks lowering corporate climate ambition. Combining national and global benchmarks, and complementing emissions target assessments with evaluations of implementation plans, can improve their robustness and relevance.
