Projected temperature alignment of G20 countries (Implied Temperature Rise in °C)

Major emitters, like China (3.8°C) and the U.S. (2.7°C), remain off track, according to MSCI’s Sovereign Implied Temperature Rise metric. Canada and Australia also lag. New national 2035 targets due this September may help investors sharpen their view of sovereign transition risk.

https://www.msci-institute.com/wp-content/uploads/2025/07/Transition-risk.svg

Source: MSCI ESG Research, data as of June 30, 2025.