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Is Net Zero Still a Priority for Businesses? What the Data Says

Written by CarbonUnits.com | Apr 24, 2025 10:30:00 AM

In recent years, net-zero targets have become a central pillar of corporate sustainability strategies. Yet in public discourse, there is some skepticism: Are companies truly following through on their commitments, or is momentum fading behind closed doors?

Close-up of tree seedlings ready for planting, with office employees gathered in front of the buildings. AI generated picture.

The latest data tells a different story. According to PwC’s 2025 State of Decarbonization report, 84% of companies either maintained or strengthened their environmental goals in 2024. This finding challenges the perception of backtracking and suggests that decarbonisation remains a strategic priority for the vast majority of businesses.

Growth in companies with decarbonisation targets.

So, how committed are companies in practice—and where is meaningful progress actually being made?

A Closer Look at Corporate Commitments

PwC’s report draws from over 4,000 corporate disclosures, supplemented by data from CDP, the Science-Based Targets initiative (SBTi), and S&P Capital IQ. The findings reveal that companies are not only sticking with their climate strategies but, in many cases, are scaling them up:

  • 37% of companies increased their emissions targets in 2024.

  • Only 16% reduced their targets, with most citing the need to recalibrate unrealistic ambitions set without detailed implementation plans.

  • The trend is expanding beyond major corporations. The average revenue of companies setting Scope 1 and 2 targets has declined from $3.8 billion in 2020 to $1.3 billion in 2024, indicating that smaller firms are also engaging seriously in sustainability efforts.

This broadening of commitment is especially noteworthy, as it reflects deeper integration of environmental goals across the value chain, not just at the top tiers of industry.

Number of companies setting Scope 1  and 2 targets per year and emissions covered by targets.

Scope 1, Scope 2—and the Challenge of Scope 3

Breaking down the numbers by emissions categories provides further insight into where progress is occurring:

  • Scope 2 emissions (indirect emissions from purchased energy) saw a 12% reduction in 2024, largely driven by a shift to renewable energy. PwC notes that over 40% of last year’s Scope 1 and 2 reductions were linked to clean electricity uptake.

  • 67% of companies are on track to meet their Scope 1 and 2 targets, suggesting strong progress in areas where businesses have more direct control.

Scope 3 emissions—those generated across a company’s entire value chain—remain more complex. However, improvements are emerging:

  • Over 3,600 companies disclosed Scope 3 data in 2024, an increase of 80% compared to the previous year.

  • Supplier engagement rose to 72%, while customer engagement reached 67%, highlighting a shift toward more collaborative decarbonisation efforts.

Although only 54% of companies are currently on track to meet Scope 3 goals, the growing transparency and stakeholder involvement suggest a positive trajectory.

Sustainability as a Strategy: Value Beyond Compliance

The emphasis on net-zero targets is no longer being driven solely by regulatory pressure or reputation management. Increasingly, companies view decarbonisation as a strategic business opportunity:

  • 60% of companies already offer low-carbon products, positioning themselves to benefit from a growing market shift.

  • PwC projects an 18% increase in capital expenditure and a 21% rise in operational spending on climate mitigation and adaptation by 2030.

  • These efforts are expected to translate into direct business value. According to PwC, low-carbon offerings and cleaner supply chains could increase a company’s value by 6% to 25% over time.

This transition from compliance to competitiveness reflects a maturing approach to sustainability—one that is increasingly integrated into financial and operational planning.

The Execution Gap: Ambition vs Delivery

Still, challenges remain. Not all companies are moving at the same pace, and the gap between ambition and delivery is significant in some sectors.

A recent Accenture analysis revealed that only 16% of the world’s 2,000 largest public companies are currently on track to meet their net-zero targets by 2050. Similarly, the Oxford Net Zero Tracker found that over 40% of major companies still lack full emission reduction plans, particularly for Scope 3.

This divergence illustrates a key tension in the net-zero transition: while commitments are widespread, follow-through varies. For many organisations, the next few years will be critical for converting pledges into measurable outcomes.

Case in Point: Emissions Declines in the EU Power Sector

​The European Union's Emissions Trading System (EU ETS) has been instrumental in driving significant reductions in greenhouse gas emissions, particularly within the power sector. In 2024, the EU ETS reported a 5% decrease in carbon dioxide emissions compared to the previous year, bringing emissions to approximately 50% below 2005 levels and aligning with the 2030 target of a 62% reduction.

Key Factors Contributing to the Emission Reductions:

  1. Transition to Renewable Energy: Electricity from renewable sources increased by 8% in 2024. This shift was a primary driver in reducing reliance on fossil fuels, leading to lower emissions. ​

  2. Nuclear Energy Contribution: There was a 5% uptick in nuclear power generation, further diversifying the energy mix and contributing to emission reductions. ​

  3. Decline in Fossil Fuel Usage: Coal and natural gas consumption decreased by 15% and 8%, respectively, reflecting a deliberate move away from high-carbon energy sources. ​

Solar panels and wind turbines as part of a renewable energy project. AI generated picture.

These developments underscore the effectiveness of the EU ETS as a policy tool, demonstrating how a combination of regulatory frameworks and targeted investments can lead to substantial environmental benefits. The power sector's proactive approach serves as a model for other industries aiming to achieve similar decarbonisation goals.

Looking Ahead: Where Corporate Net Zero is Headed

The 2024 data offers a clear message: despite mixed narratives, companies are largely maintaining or increasing their commitment to net zero. More importantly, these goals are being translated into action through investment, product innovation, and stakeholder engagement.

Yet the work is far from done. Scope 3 remains a major challenge, and long-term alignment will require continued transparency, standardisation, and collaboration—across industries and along supply chains.

Net zero is no longer just an aspirational label. For many companies, it is becoming a core component of future-proof strategy.

From Commitment to Action—and Why Nature Still Leads

The latest data leaves little doubt: most companies are not backing away from their sustainability commitments. In fact, many are accelerating efforts, especially in areas where policy support and technological solutions are well developed. But while progress is evident, particularly on Scope 1 and 2 emissions, the path to full decarbonisation remains complex—especially when it comes to value chain and Scope 3 emissions.

This is where nature-based solutions come into sharp focus. They offer a powerful, scalable complement to internal decarbonisation efforts. From reforestation and biodiversity restoration to regenerative agriculture and sustainable land use, these solutions provide measurable carbon reductions while also enhancing ecosystems, supporting communities, and building climate resilience.

Drone view of a local community working at a tree nursery as part of a reforestation initiative. AI generated picture.

For businesses seeking long-term value, the message is clear: investing in nature isn’t just good for the planet—it's a good business strategy. It offers credibility, co-benefits, and flexibility in a fast-evolving policy and stakeholder landscape.

In short, net-zero isn’t a destination. It’s a shift in how businesses think, operate, and create value. And the most forward-looking companies already know that relying on nature is not a fallback—it’s a competitive advantage.