Fortescue, Lendlease and IKEA demonstrate positive practice in climate leadership

The assessment builds on a 2024 ISF report that found widespread shortcomings in Australian companies’ climate transition plans. While most companies had public net zero targets, few aligned completely with the UN HLEG standards for climate transition plans, and none had committed to phasing out fossil fuels.

In contrast, the three companies in the latest report showed relatively high alignment with the UN HLEG benchmark. While operating in diverse sectors – mining, construction, and retail – Fortescue, Lendlease and IKEA have ambitious targets, which in some cases exceed science-aligned pathways. The report identifies four key areas of leadership:

• commitment to phase out fossil fuels for significant parts of the business
• commitment to achieve decarbonisation without reliance on offsets
• efforts to collaborate and support sectoral reform through leadership and information sharing, involving advocacy for real zero (not net zero), Scope 3 emissions protocol
• strong internal leadership and commitment to real decarbonisation outcomes, fostering a culture of commitment to targets as a core part of the companies’ culture.

The report aims to showcase what credible, high-integrity climate leadership can look like. “The ambition displayed by Fortescue, IKEA and Lendlease is redefining what corporate climate leadership could and should look like both in Australia and around the world,” said Climate Integrity Director, Claire Snyder.

Research outputs

download Real Zero Leadership: Positive Practice in the Net Zero Pledges of Australian Companies (2025) (Report)