How to Screen for Net-Zero Companies

A net-zero company is one that commits to reducing its greenhouse gas emissions to as close to zero as possible — and offsetting any remaining emissions it cannot eliminate. The commitment typically covers Scope 1 (direct emissions), Scope 2 (purchased energy), and Scope 3 (supply chain and product use).

A credible net-zero company sets a specific target date and publishes measurable progress data. Without both, the label is a claim, not a commitment. Learn how to measure the climate impact of your investments using verified emissions data.

Scope 1 covers emissions a company produces directly — from its own facilities, vehicles, and manufacturing processes. Scope 2 covers emissions from the electricity and heat a company purchases. Scope 3 covers all indirect emissions across a company's value chain, including suppliers, business travel, and the use of its products by customers.

Scope 3 is typically the largest category and the hardest to measure. A company that only reports Scope 1 and Scope 2 data is showing an incomplete picture. Understanding all three scopes is essential to assessing the true climate impact of your investments.

A net-zero claim is a statement. A net-zero target date is a measurable commitment tied to a specific year. Companies that publish target dates — such as 2040 or 2045 — are held to a higher standard of accountability than those that simply describe themselves as committed to sustainability.

Earlier target dates signal greater ambition. A 2035 target requires faster, deeper action than a 2050 one. When building a fossil-free portfolio, filtering by target date is one of the most direct ways to distinguish genuine commitments from marketing language.

Yes. A company can have low carbon intensity simply because its business model has always been light on emissions — a software company, for example, generates far less carbon per dollar of revenue than a steel producer. Low intensity today does not mean the company has actively decarbonized or made any commitment to reduce further.

This is why trajectory matters alongside intensity. Ziggma's carbon intensity change percentage filter identifies companies whose emissions intensity is actively falling — not just companies that started low. Use it alongside the net-zero target date filter to find companies that are both clean and improving. See how to reduce the climate impact of your portfolio using these signals together.

Exclusion screening removes companies whose business model conflicts with a net-zero portfolio — fossil fuel producers, companies with deforestation risk, or those flagged for active controversies. It sets a floor by eliminating what you don't want.

Positive selection screening actively identifies companies contributing to the net-zero transition — through clean energy, resource efficiency, or verified climate commitments. It builds on the floor exclusion sets by finding the best opportunities within the remaining universe. The Ziggma free stock screener supports both strategies through separate preset themes and individual filter controls.

Four presets are most relevant. For exclusion, Fossil Fuel Free and No Deforestation remove companies with direct conflicts with a net-zero mandate. For positive selection, Growth + Net Zero targets high-growth companies with published emissions commitments, and Climate Solutions targets companies whose core business delivers measurable climate benefits.

The most effective approach is to apply one or more exclusion presets first, then layer a positive-selection preset on top. All four are available in the Ziggma free stock screener with no account required to explore.

Yes. The Ziggma screener covers both individual stocks and ETFs. You can toggle between the two at the top of the screener. ETF screening is particularly useful for investors who want net-zero exposure through a diversified fund rather than individual stock picks.

Climate-focused ETFs such as iShares Global Clean Energy ETF (ICLN) and State Street SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) appear in the ETF results. The same impact filters — carbon intensity, net-zero target date, and climate solutions — apply to both views in the Ziggma free stock screener.

The Ziggma Stock Score rates every company from 0 to 100 based on four financial dimensions: growth, profitability, financial health, and valuation. It appears as a column in every screener result, alongside the climate data.

This matters because a low carbon intensity or a net-zero target date says nothing about whether a company is a good investment. Sorting screener results by Ziggma Score after applying climate filters surfaces the highest-quality net-zero companies at the top of the list — rather than the ones that merely pass the emissions threshold. Learn more about how the Ziggma Stock Score is calculated.

Ziggma's climate and impact data is powered by ACA Ethos, a specialist impact data provider. ACA Ethos covers more than 600 metrics across environmental, social, and governance dimensions — including carbon intensity across all three scopes, net-zero target dates, deforestation risk, climate solutions scores, and controversy monitoring.

Data is sourced from company disclosures, regulatory filings, and third-party verification — not self-reported ESG questionnaires alone. Learn more about how Ziggma's impact data works and how ACA Ethos differs from traditional ESG ratings providers.

ACA Ethos updates core emissions and impact metrics monthly, as new company disclosures and regulatory filings become available. Controversy monitoring — which flags companies with active greenwashing claims or environmental violations — runs on a daily basis.

This means the net-zero target dates, carbon intensity figures, and controversy flags in the Ziggma screener reflect the most current available data, not a static annual snapshot. Run a Ziggma Portfolio Checkup to see how your current holdings score across these same climate dimensions.