PwC Finds 82% of Companies Maintaining or Accelerating Climate Goals

A new PwC report finds that 82% of companies are maintaining or accelerating their climate targets, challenging the narrative that corporate sustainability commitments are retreating under political pressure. The study, drawing on data from 3,547 companies, also found that decarbonization efforts are increasingly extending to supply chains, with Scope 3 emissions transparency rising by 30% over the prior year.

PwC's third annual State of Decarbonization report analysed disclosures from companies across multiple industries and geographies. Key findings include 69% of companies on track to meet their Scope 1 and 2 targets, and 56% on track against Scope 3 pathways, up from 54% the year prior. Global investment in industrial energy efficiency rose 45% between 2020 and 2025, reaching approximately $30 billion. The median revenue of companies setting new Scope 1 and 2 goals in 2025 fell to $1.1 billion, compared with $4.1 billion in 2020, indicating that decarbonization target-setting is spreading beyond large corporations.

The report highlights growing supply chain engagement as a defining trend in corporate climate action. The share of Fortune 500 companies with visibility into supply chains beyond tier-1 suppliers rose from 50% in 2023 to 75% in 2025. Companies with structured decarbonization programs in place increased from 35% to 64% over the same period. However, challenges persist for Scope 2 emissions reduction, including competition for energy resources from data centre expansion and a 19% decline in contracted power purchase agreement volumes in the U.S. and Europe.

The use of artificial intelligence in sustainability initiatives is gaining traction but remains early-stage, with 60% of companies reporting AI use for operational decarbonization, while less than 1% are actually quantifying the resulting emissions reductions. Only 14% of companies publicly report using AI to improve sustainability or emissions reporting. PwC highlights sustainability data management as a near-term opportunity for AI adoption, particularly as reporting requirements under frameworks such as CSRD and ISSB standards increase complexity for companies globally, including those with Indian supply chain exposure.

Key figure — $30 billion in global industrial energy efficiency investment in 2025