Are Global Companies on Track for Net-Zero 2050?

A recent analysis from Accenture has revealed alarming insights into the progress of global companies toward achieving net-zero emissions by 2050.

Only 16% of the world’s largest companies, collectively known as the G2000, are on track to meet these goals—a slight decrease from 18% in 2023.

This is a concerning trend as businesses worldwide struggle to reduce emissions while scaling their operations.

Andrea Ranger, director of shareholder advocacy at Trillium Asset Management, commented, “The fact that so few of the G2000 companies are on track to reach net-zero emissions is alarming.” Ranger’s statement underscores the urgency for immediate and effective decarbonization strategies to mitigate climate change's dire consequences.

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A Closer Look at Accenture’s Findings

The fourth edition of Accenture’s “Destination Net Zero” report paints a mixed picture of global decarbonization efforts.

While 53% of companies have reduced their scope 1 and scope 2 emissions since 2016, 45% still report increasing emissions.

Stephanie Jamison, Accenture’s sustainability services lead, called it a “significant milestone” that many companies are reducing emissions despite operational growth. However, she warned, “To reach 2050 net-zero goals, all of us need to move faster, together, to reinvent sustainable value chains.”

Notably, the report highlighted regional disparities. European companies lead the pack, with 21% on track for net zero and only 33% reporting rising emissions.

In contrast, North American companies align more closely with global averages, with just 17% prepared for net zero by 2050.

Encouraging Trends Amid Challenges

Despite the challenges, some promising trends are emerging. Companies are increasingly adopting “decarbonization levers” to reduce emissions.

These actions include energy efficiency, renewable energy adoption, waste reduction, circular economy principles, and building decarbonization.

Over 80% of G2000 companies utilize at least five methods, signaling widespread adoption of proven strategies to curb emissions.

The number of companies with net-zero emissions targets, including Scope 1 and Scope 2, rose to 28% in 2024, up from 18% in 2023.

Overall, 65% of companies have net-zero targets, showing a growing commitment to climate action.

Anya Solovieva, global commercial lead of climate solutions at Morningstar Sustainalytics, noted that European companies remain better equipped to manage transition risks.

She said, “European companies are more prepared than companies in other regions to manage transition risk,” based on data from Morningstar’s Low Carbon Transition Ratings.

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The Role of Technology in Decarbonization

Accenture’s report emphasized the need for innovative approaches, including artificial intelligence (AI), to accelerate decarbonization.

Currently, only 14% of G2000 companies use AI for emissions reduction, highlighting untapped potential in leveraging technology for climate goals.

Over time, Accenture recommends that companies refine and incorporate AI into their climate strategies, enabling more efficient and effective solutions.

For immediate action, the report advises companies to set comprehensive emissions targets covering scopes 1, 2, and 3, with clear milestones and external validation.

Developing business-relevant decarbonization strategies and implementing transformative actions remain essential steps.

Urgent Need for Science-Based Targets

Environmental organizations are amplifying calls for science-aligned climate action.

Steven Clarke, program director for climate and energy at Ceres, stressed the importance of setting actionable goals. “While the recent trend towards more companies setting net-zero targets is encouraging, we need far more companies across all sectors of the economy not only setting 1.5 [degrees] C aligned science-based net zero targets but also developing comprehensive climate transition action plans,” Clarke said.

The Accenture study revealed that while some progress has been made, the urgency for widespread and meaningful action is undeniable.

The report warns of the economic and environmental consequences of inaction, particularly as projections indicate 2024 could become the hottest year on record.

Moving Forward with Purpose

With 2050 looming, the path forward requires collaboration, innovation, and decisive action.

Companies must focus on immediate steps like setting emissions targets and using proven decarbonization techniques.

Over the long term, integrating advanced technologies such as AI can streamline processes and enhance impact.

For now, it remains clear that businesses cannot afford to delay their climate strategies.

As Ranger aptly noted, “The existing and predicted impacts of climate change are so dire, companies must saddle up and find emissions cuts before we face an economy-wide financial crisis.”

By embracing comprehensive plans, leveraging technology, and collaborating across sectors, companies can contribute to a more sustainable future—while positioning themselves as leaders in the global transition to net-zero.