More than 34% of the world’s largest companies are now committed to Net Zero, with a record rise in the number of corporate targets validated by the Science-Based Targets initiative (SBTi) this year alone. Furthermore, 84% of companies plan to increase their sustainability initiatives investments before 2022.
However, according to a new report from Accenture, if they don’t at least double the pace of emissions reduction by 2030, nearly all (93%) will fail to achieve their goals. Also, only 7% of companies are on track to achieve their net zero targets for scope 1 and 2 emissions at the observed rates of change and moving targets to 2050 increases that share just slightly to 8%.
The report says even in a scenario where companies accelerate emissions reduction at a doubled rate compared to the present in the years to 2030 and then three times after – 59% would still fail by 2050.
The report titled Accelerating Global Companies toward Net Zero by 2050 finds that soaring energy price and supply insecurity is pushing commitments out of reach based on an analysis of data of emissions reduction commitments from the 2000 largest public and private companies worldwide.
Thus, acceleration to achieve net zero goals will require ‘carbon intelligence’ capabilities, including integrating carbon, energy, ESG and other sustainability data and insights into financial and operational business information to help drive everyday decision-making.
“Amid global economic, political and environmental disruption, more companies than ever before have publicly committed to largely decarbonizing by around 2050. This heightened ambition is encouraging, but it is also clear that a steep acceleration of emission reductions is required,” said Jean-Marc Ollagnier, CEO of Accenture for Europe.
Jean-Marc Ollagnier, CEO of Accenture for Europe.
“Maximizing value from mature technologies, such as digital and certain renewable energies, while accelerating the deployment of breakthrough solutions like hydrogen will be critical. Most importantly, reaching net zero will require urgent and profound transformations, as it is about embedding sustainability into everything organizations do, redefining their purpose, culture and business models.”
“To move at the speed and scale required by science and economics, it will be critical for businesses to develop multiple ‘carbon intelligence’ capabilities at the same time,” said Mauricio Bermudez-Neubauer, global lead for carbon strategy & intelligence at Accenture. “This means integrating decision-ready carbon data and insights across their systems and processes, enabling efficient use of financial and non-financial resources along with sound risk management in deploying the digital, biological and industrial technologies that will be necessary to attain net zero.”
