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In CDP’s 2015 annual global climate change report, companies were invited to say whether their board supports an international agreement between governments on climate change and to describe their board’s position on what an effective agreement would mean for their company. According to the results more than 800 of the largest listed companies favor a global deal to tackle climate change. In countries such as India and South Africa, the majority of companies responding to the two questions showed their support for an agreement in Paris.

These companies are demanding a legally binding international agreement that will ensure net zero greenhouse gas emissions well before the end of century. Officials from BMW AG, Germany states: “We are calling for a universal, ambitious and balanced climate agreement with a long term goal to achieve global net-zero emissions within the 21st century, backed by national contributions that create an upward spiral of ambition.” However, to achieve this long-term goal, the agreement must also include several other components, such as:

• A ratchet mechanism that ensures continuous improvement of current targets and spurs national, sub-national and corporate ambition to reduce greenhouse gas emissions further and faster, 
• Principles and mechanisms that enable carbon pricing to be implemented across the globe,
• Clear accounting and reporting rules to track global progress,
• A clear framework for governments and private sector that enables them to provide investment in the low carbon economy and climate resilience at scale,
• Equal treatment of mitigation and adaptation with governments leveraging private sector finance to build adaptive capacity

These components of a Paris agreement will ease the transformation to a low-carbon economy.