• 84% of companies maintain or accelerate climate ambitions; just 16% scale back.
• Companies investing in sustainable products see 6%–25% revenue uplifts.
• Small businesses increasingly adopt climate goals, driving broader supply-chain action.

Despite persistent headlines suggesting businesses are retreating from sustainability commitments, PwC’s second annual State of Decarbonization Report reveals steady, quiet progress toward corporate climate ambitions.

Analyzing disclosures from over 4,000 companies, PwC found a nine-fold increase in climate commitments over the past five years. More than 4,000 companies reported climate commitments through CDP in 2024, significantly up from previous years.

“More companies than ever are committed to decarbonization,“ the report emphasizes. Even with changing leadership, corporate sustainability commitments remain resilient. Among companies with CEO transitions, none abandoned their net-zero targets.

Companies are discovering significant financial rewards linked to sustainable investments. Products emphasizing sustainability attributes achieved revenue increases between 6% and over 25% compared to non-sustainable counterparts. “Products featuring sustainability attributes can achieve a revenue increase of 6% to 25%+ over products without such emphasis,” the report highlights.

Investment in low-carbon R&D remains robust, with 83% of companies actively pursuing innovation in this area. The shift towards sustainable product design is now central to corporate strategy, driven by consumer expectations and regulatory pressures.

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A notable shift is occurring among smaller companies, prompted by supplier engagement initiatives from larger corporations. Median revenue of companies committing to climate goals has dropped from $3.6 billion in 2020 to $1.3 billion in 2024, reflecting deeper penetration into smaller enterprises. “We expect to see this trend strengthen in coming years, creating a tipping point and profound impacts on global value chains,“ PwC states.

Scope 3 emissions—those from value chains—remain the most challenging, yet critical, area for action. Over half (54%) of companies are now on track with Scope 3 targets, up from 50% the previous year.

PwC identifies four key differentiators that separate decarbonization leaders from laggards:

• Strong governance integrating sustainability into corporate strategy.
• Strategic funding for climate initiatives.
• Deep value-chain engagement with suppliers and customers.
• Product sustainability focus to reduce Scope 3 emissions.

“Success in this new era won’t be left to chance—it will likely turn on execution,“ the report concludes. Companies effectively combining these elements are positioning themselves as industry leaders, capturing resilience, margin strength, market expansion, and long-term competitive advantage.

Read the full article here.

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