A report has found that while companies are making progress to cut greenhouse gas emissions “a steep change is needed to meet international climate goals”.

The report, by academics at the University of Exeter and J O Hambro Capital Management, forecasts UK firms’ climate change action for the next 25 years.

It estimates that emission cutting will plateau until 2032, following by a reduction from 350 million tonnes of CO2 equivalent to approximately 115 million tonnes in 2050 – about one third of current levels.

But while this is “substantial” it “remains insufficient to meet the net zero pathway needed to limit warming to 1.5°C, placing the UK on track for a “disorderly” transition and “exposing the UK economy to heightened risks”.

“UK firms are performing reasonably well, but our analysis shows that accelerated action is needed,” said Nikolaos Dimakis, senior data scientist at J O Hambro.

“The research shows that just a few sectors – Energy Minerals, Process Industries, and Transportation – are responsible for 88% of total UK corporate emissions.

“It also reveals that 88.7% of their emissions are generated overseas, underscoring the global footprint of UK businesses and their supply chains.”

He added: “The UK accounts for a small proportion of global emissions, but we have a significant influence – and we also have a responsibility to play our part and lead by example.

“UK-listed companies do business around the world, so they can be agents of change worldwide.”

The report points out that the UK has already cut its onshore emissions by about 50% since 1990, largely due to renewable power – which now accounts for more than half of UK electricity generation.

The report looked at almost 350 firms, spanning 20 sectors, including finance, transport, oil, gas and technology.

It only assessed scope 1 and 2 emissions – “as data on scope 3 (indirect emissions across a company’s value chain) is poorly reported and inconsistently disclosed, limiting their reliability for comprehensive analysis”.

Their report added: “Scope 3 emissions often represent a significant portion of a company’s total carbon footprint and should be urgently addressed through enhanced reporting and regulations.”

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