Corporate Net Zero Targets Rise, but Value Chain Emissions Progress Slows: Accenture Report

A new report from Accenture, Destination Net Zero, highlights that while the world’s largest companies are increasingly setting net zero emissions targets for their operations, progress on emissions reductions across value chains has stalled. The study analyzed the net zero commitments, carbon reduction activities, and emissions data of 2,000 major public and private companies.

According to the report, 65% of companies have now set targets to achieve net zero emissions in their operations, a notable increase from 54% in 2023. However, despite these commitments, only 16% are on track to achieve net zero in their operations by 2050, a decline from 18% last year.

Accenture's study also revealed that companies are adopting a variety of decarbonization methods. Over 80% of companies are utilizing energy efficiency, waste reduction, renewables adoption, circular principles, and building improvements to reduce emissions. The use of employee incentives as a decarbonization lever has more than doubled to 54%, and 65% of companies are focusing on material sourcing.

Despite progress in operational emissions reduction, the report found that the proportion of companies with net zero targets encompassing Scope 1, 2, and 3 emissions has stagnated at 37%. This indicates significant challenges in decarbonizing value chains, particularly in high-emitting industries.

In the report, Accenture noted, “The gap between companies setting full net zero targets and those focusing only on operational emissions highlights the challenges in addressing Scope 3 emissions, especially for heavy industries that are hard to decarbonize. Speeding up progress in these high-emitting sectors is crucial, as broad decarbonization—and the global transition to net zero—depends disproportionately on the outcomes they achieve.”

One notable trend in the study was the increasing use of AI. While AI’s carbon footprint is expected to rise sharply, with data center emissions predicted to increase tenfold by 2030, executives remain optimistic. 42% of respondents believe AI will reduce emissions in the short term, with 65% expecting a net reduction over the long term. However, only 14% of companies are currently using AI for decarbonization purposes.

Stephanie Jamison, Accenture’s Global Sustainability Services Lead, emphasized the importance of accelerating decarbonization efforts. “To get to net zero by 2050, all of us need to move faster, together, to reinvent sustainable value chains using deep collaboration and transformative technologies. AI can help but can only go so far when only 22% of AI-employing companies are currently using it for decarbonization,” she said.