Investors are ramping up their scrutiny of medium-term emissions reduction targets and are planning to hold boards accountable if they don’t pass muster.

Proxy advisory firm ISS’s recent benchmark survey results show that a significant number of 188 investors told ISS that a lack of “realistic” medium-term emissions reduction targets for Scope 1 and 2 (50%) and, if applicable, Scope 3 (45%) may constitute a “material governance failure” that should lead ISS to recommend votes against a board member or members at high-emitting companies as defined by the investor group Climate Action 100+. That means investors are evaluating disclosures about medium-term targets to discern their reliability and credibility. In addition, investors are starting to seek these disclosures among companies that aren’t currently considered heavy emitters.

If the disclosures don’t stand up to scrutiny, investors are planning to hold boards to account. Currently, few companies disclose medium-term targets in public filings.

An Agenda analysis using public company intelligence provider MyLogIQ showed that S&P 500 companies made only 26 filings mentioning the terms “medium-term” and “emissions” together between Jan. 1 and Oct. 13, which excludes mentions in exempt solicitations. A total of 18 companies made these disclosures.