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- Only 9% of companies report comprehensive Scopes 1, 2, and 3 emissions.
- Companies using AI for decarbonization are 4.5x more likely to see significant benefits.
- Brazil, India, and China lead in emissions reporting, target setting, and reductions.
Despite increasing urgency to address climate change, corporate decarbonization progress has slowed. A new report by Boston Consulting Group (BCG) and CO2 AI reveals minimal progress by companies in addressing climate issues over the past year.
The Carbon Emissions Survey, conducted among 1,864 executives from 16 industries across 26 countries, highlights the gap between ambition and action. Only 9% of companies surveyed comprehensively report Scopes 1, 2, and 3 emissions, and just 11% have achieved emissions reductions in line with their targets.
“Too few companies are seizing the financial gains offered from decarbonization,” said Diana Dimitrova, BCG Managing Partner. “By mastering essential actions like measurement and target setting, companies can become more efficient and profitable.”
AI’s Role in Decarbonization
Companies using AI to reduce emissions are 4.5 times more likely to see significant benefits. AI optimizes sustainability efforts, enabling businesses to cut emissions and increase value capture.
“AI has the potential to be a game changer, empowering businesses to reduce emissions and achieve climate goals,” said Charlotte Degot, CEO of CO2 AI.
Financial Benefits of Decarbonization
Companies leading in decarbonization report substantial financial gains, averaging $200 million in annual net benefits. These savings come from reduced operating costs, increased efficiency, and the adoption of renewable energy.
Countries like Brazil, India, and China are setting the pace, with comprehensive emissions reporting and aggressive emissions reduction strategies.
Related Article: Boston University report says China could drive Africa’s renewable energy revolution
“The window for companies to take decisive action is rapidly narrowing,” said Hubertus Meinecke, BCG’s Global Leader of Climate & Sustainability.
Companies that excel in foundational climate actions—measurement, reporting, and target setting—are more likely to unlock significant decarbonization benefits, making decarbonization not just an environmental necessity but also a financial opportunity.