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Sustainability

Accelerating global companies toward net zero by 2050

November 2, 2022 5-Minuten Zeit

RESEARCH REPORT

In brief

Progress growing globally but concerted action is needed

Building on our European net zero research in 2021, Accenture expanded analysis to the Accenture Global 2000 (the top 2,000 public and private companies in the world by revenue).

Our findings show some progress in the past year. But also an urgency for companies in every industry to accelerate their decarbonization efforts.

On the positive side, net zero momentum has been building since COP26. More companies than ever before (34%) have publicly committed to reaching net zero carbon emissions by around 2050.

And a large proportion of companies committed to net zero are putting in place more sophisticated measures. These include setting nearer-term intermediate targets, planning the shift to renewables, and developing clearly visible climate mitigation and adaptation strategies.

However this heightened ambition isn't yet matched by the necessary action.

"Even in an accelerated scenario –where the pace of emissions reduction is twice as fast until 2030 and then up to five times as fast until 2050– two fifths of companies will miss their own targets."

And 22% will fail to hit net zero by 2050 – the deadline deemed necessary to avert catastrophic climate change.

Companies stepping up in difficult circumstances

The economic and geopolitical context has changed considerably in the past year. Problems of inflation, supply chain bottlenecks and talent shortages have all contributed to a more challenging environment for investment and action.

Our findings, though, show that the current instability has not deterred the focus on sustainability. In fact, these events seem to have strengthened determination:

84%

of companies said they plan to increase investments in sustainability initiatives by the end of 2022. This proportion has risen by 4 percentage points since last year.

39%

of all Science-Based Target initiative (SBTi) commitments set since 2015, were set in the months after the war in Ukraine began (up to the start of October 2022).

$226B

Total worldwide renewable energy investment in the first six months of 2022 - a record for a first half year, and an 11% year-on-year rise.

Yet it’s still not enough. The pace of emissions reduction needs to accelerate significantly in this decade to reach net zero by around 2050.

Uncovering net zero trends across industries and geographies

Strategies to accelerate decarbonization in every sector

Regardless of where companies are on the journey to net zero, they can take key steps beginning today.

It starts with setting targets

On average, companies that have set full net zero targets managed to cut operational emissions by 18% between 2011 and 2020.

Multiple targets cut emissions faster

In addition to long-term net zero targets, they set intermediate targets and lever-specific goals like renewable energy targets. They also follow a clear and integrated transition strategy.

Lessons from the leaders

Looking at the companies on track to hit net zero by 2050, we see a pattern of speedier decarbonization. They have developed and deployed comprehensive decarbonization strategies and carbon intelligence capabilities.

Carbon intelligence is a set of capabilities that enables organizations to control, improve and drive value-creation and impact, by embedding carbon (and broader ESG) business intelligence into decision making within the core business and across the value chain.

These leaders are more likely to treat their carbon, energy and emissions data as true business information. They not only track it; they act on it. Specifically, they’re more likely to: 

  1. Ensure their targets are science-based.
  2. Build in methods to reduce energy use and emissions.
  3. Implement more complex mechanisms such as internal carbon pricing.
  4. Adopt and report against prominent ESG frameworks, which demand clarity around climate strategy and governance.

Companies setting the example

Naturgy

With the goal of achieving zero emissions across all scopes by 2050, Naturgy’s strategy for decarbonization includes achieving a 56% clean energy mix by 2025, leading to the closure of all its coal-powered stations in 2020, and a 33% increase in installed capacity through wind, water and solar power investment in 2021.

Mahindra & Mahindra

The Indian automotive company has in place a carbon neutral goal by 2040, validated by SBTi, as well as the target to achieve 100% renewable energy by 2030. In 2021, the company increased its renewable energy consumption by 19%, and enhanced energy efficiency in its sites, achieving an 11% reduction in scopes 1 and 2 emissions compared with the year before.

Accelerate your company’s actions today

Regardless of maturity level, every company can make a difference in the race to net zero.  Click or tap to see the actions you can take to help the world get to net zero by 2050.

  • Gather, interpret and act on your carbon and energy data.
  • If your company doesn’t have a clearly defined net zero target, set one. Then make sure there are milestones to get there, in the form of publicly announced intermediate targets.
  • With the pathway set, build in more sophisticated metrics – around energy use, for example, and create capabilities for measurement and a plan for action.

  • With granular data about energy and emissions adequately integrated with operational and financial data, identify and prioritize the investments that have immediate value and carbon payoffs.
  • Evaluate assets and operations for areas where efficiencies can be achieved. These lead to both avoided emissions and saved energy – especially useful when energy prices are high.
  • Such measures can often be as mundane as fixing the lighting in your buildings or measuring electricity performance with greater granularity. But it could also involve rethinking processes or pivoting to self-generate renewable electricity.

  • In some industries, the solutions to get to net zero lie in the future through innovation. Identify, build and scale them.
  • This will involve extensive collaboration – across sectors and value chains. For some industries, key solutions will be developed elsewhere. Work out what solutions will be needed, and find partners to develop them.
  • Similarly, legacy solutions that look cheap today may become stranded assets. Identify where new investments can be made now that will give your company an edge in the future.

 

Jean-Marc Ollagnier

CEO – Europe

Jean-Marc is the chief executive officer of Accenture in Europe and is a member of Accenture’s Global Management Committee.

Peter Lacy

Global Sustainability Services Lead & Chief Responsibility Officer

Peter advises leaders of Fortune 500 companies on strategies related to growth, technology, innovation and sustainability.

Mauricio Bermudez Neubauer

Managing Director – Strategy & Consulting, Carbon Strategy & Intelligence Lead

Mauricio supports organizations in the transition to the future economy—the intersection between the low carbon, circular, ethical and digital economies.

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