RESEARCH REPORT
Destination net zero: Fast-tracking progress
5-MINUTE READ
November 11, 2024
In brief
- Companies are making progress toward net zero, but the pace of decarbonization is not fast enough to meet global climate targets.
- Only 16% of G2000 companies are on track to reach net zero in their operations by 2050—down from 18% from last year.
- AI is emerging as a key accelerant of decarbonization, but only 14% of companies are using it to tackle emissions. Increased adoption is crucial.
By the numbers
The race to net zero is well underway, but how fast are companies progressing? Our Destination net zero report uncovers the latest data from the world’s 2000 largest companies by revenue (G2000), revealing that while progress is being made, acceleration is essential.
Here’s a breakdown of the numbers shaping the future of corporate decarbonization:
55%
of G2000 companies have reduced their operational emissions (Scope 1 and 2) since 2016. (+ 3% since 2023).
77%
have reduced emissions intensity (emissions per unit of revenue). (+ 2% since 2023).
30%
are deploying 15 or more decarbonization levers, which represents a crucial threshold on the path to net zero.
Emissions data were retrieved from S&P Global Trucost 2024.
Progress is still limited
Only 16% are on track to reach net zero in their operations by 2050
Significant regional and sectoral discrepancies also persist
64%
of European companies have full Scope 1-3 targets, compared to only 26% of North American companies.
54%
of banking companies have full Scope 1-3 targets, while only 20% of health companies do.
3.7
levers are deployed on average by communications and media companies, compared to 6.3 in the health sector.
Here’s where more work is needed…
This data not only highlights enduring barriers specific to industries and regions, but also underscores the urgent need for a broader and faster adoption of foundational decarbonization levers across the economy to drive faster progress to net zero. Yet, foundational measures alone may not suffice.
To truly accelerate decarbonization, companies must embrace next-generation levers, particularly emerging technologies with transformative potential.
…and why AI could be a game-changer
How companies can accelerate their path to net zero over the next two years
Set targets and develop transition plans
Companies must define comprehensive targets covering Scope 1, 2, and 3 emissions, and collaborate with reputable external bodies to validate their data and track performance. Businesses should also implement robust internal governance mechanisms to embed accountability and work with industry partners to address emissions hotspots.
Build a stack of decarbonization levers
Foundational levers, such as improving building efficiency, adopting renewable energy, and reducing waste, should be implemented universally.
Supercharge AI
As companies refine their decarbonization approach, embedding AI as a next-generation lever can supercharge their efforts. AI enables more efficient decision-making, real-time monitoring, and predictive analytics to optimize resource management.
