The nonprofit organization CDP Europe and consultant Oliver Wyman said in a joint report that the current level of global warming from European companies' emissions would be 2.7 degrees Celsius by 2100.
That's almost double the 1.5°C target set by the Paris agreement in 2015 and significantly higher than the 2°C ambition.
Fewer than one in 10 companies have emissions targets aligned with the Paris goal, well below 2°C, according to CDP and Oliver Wyman's analysis of nearly 1,000 of Europe's largest companies.
CDP and Oliver Wyman found that to cap warming at 1.5°C, the European economy will need to reduce emissions by 50% over the next decade. And that at least 65% of companies should be "fully aligned with Paris" by then.
According to the report, the 25% of companies that have made the most progress on decarbonization reported a 15% drop in emissions last year, equivalent to the annual emissions of the Netherlands.
56% of companies report having a transition plan in place, and more than 50% of Europe's largest companies by market value have joined the Science Based Targets initiative, which determines whether emissions targets are in line with the Paris Agreement.
CDP and Oliver Wyman found that a €4 trillion ($4.8 trillion) mismatch is forming between bank lending that aims to be "Paris-aligned" and the current market for such loans in Europe.