The world’s biggest corporate firms are picking up the pace on climate action, with 89% having now set carbon emissions targets.

That’s according to a new report from environmental disclosure platform CDP, which shows around 14% of the 1,073 companies sampled are either committed to or already have targets approved under the Science Based Targets initiative.

This is a 5% increase on last year, with nearly a third more planning to set science-based targets within two years.

The report suggests the low carbon transition is driving innovation – more than a third of companies are currently offering low carbon products such as electric vehicles and zero-energy buildings, up from 30% in 2016.

CDP also ranked 160 companies as A-grade for their approaches to climate change, water and deforestation.

Unilever and L’Oréal lead the way, both achieving As across all three areas.

Paul Simpson, CEO of CDP, said: “Two years ago, the Paris Agreement fired the gun in the race to a low carbon economy. We can already see corporate winners and losers emerging.

“That’s great news for those companies seizing the opportunity of the low carbon economy but the rest need to pick up the pace or risk losing out.”