10 global companies leading their sectors on climate change and carbon transition

10 companies across the globe are leading the way in grappling with climate change and carbon transitions, according to a new Morningstar Sustainalytics study.

The study, titled “Navigating Material Climate Risks in the Global Equities Market,” evaluates how companies are doing in the transition toward a low-carbon economy, given “intensifying concerns” about global warming and the rise of carbon dioxide and other greenhouse gas emissions.

Only one of the companies, Walmart WMT , is based in the United States. The other nine include Canadian Natural Resources CNQ , Taiwan Semiconductor TSM , Siemens , Dr Reddy’s Laboratories RDY , Cathay Financial, Unibail-Rodamco-Westfield , Lundin Mining , Acciona Energias Renovables and Vodacom Group VOD .

“Today’s investors must deal with the new material world – where tightening regulations and reporting standards require market participants to demonstrate how they track, disclose and manage ESG issues,” the authors wrote in the introduction to the report.

“The combination of pressure to meet emissions reduction targets, tightening regulations, and the physical impacts of climate change present uncertainties and risks. Yet these factors can also represent opportunities to invest in solutions that contribute to a more just and sustainable global economy.”

A growing number of financial institutions are prioritizing climate change in their investment strategies, a team of analysts at Morningstar Sustainalytics wrote. Increasingly, climate change is viewed as a “threat multiplier” that can intensify the impacts of a wide range of hazards facing people’s occupations, livelihoods, and portfolios, they wrote.

The study looks at 3,373 companies for which Sustainalytics provides a low carbon transition rating and which are in the Morningstar Global Markets Large-Mid Cap Index. It also assesses the companies using Sustainalytics’ physical climate risk metrics.

Virtually all the companies are “to some extent misaligned” with net zero targets, the study found, and companies generally underreported carbon emissions, especially the scope 3 emissions that aren’t in their direct control.

Still, the analysts identified 10 companies that lead their sectors. Here are there comments on each:

Read more: How to get started investing in carbon-reduction technology