Only 12% of Companies Are Set Up to Turn Climate Action Into Business Value, South Pole Finds

Most companies are taking climate action, but very few are built to get real results from it. That's the headline finding of the 2026 Net Zero Report from South Pole, released on October 21, 2026. While 90% of companies surveyed report active climate initiatives, only 12% have the foundations needed to turn that activity into measurable emissions reductions and business value.

The study surveyed 600 senior business decision-makers across Europe and the United States. Respondents were senior manager level or above, working in finance, sustainability, or procurement, with direct involvement in their organization's climate strategy. Market research firm Sapio Research conducted the interviews online in July 2026.

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The Value Delivery Gap

South Pole calls the disconnect between climate activity and real outcomes the value delivery gap. Only 43% of respondents said their company has an approved climate strategy with implementation well underway.

Just 23% said that 75% to 100% of their climate-related business cases were approved by the CFO or investment committee in the past 24 months.

Siloed Teams Are the Biggest Barrier

Nearly all respondents, 95%, reported barriers to capturing business value from climate action. Siloed responsibility across departments was the most common, cited by 24%.

Another 20% said sustainability and finance teams use different ways to measure value. And while 77% said their climate plans cover both risk protection and value creation, 53% still described their climate work as compliance-focused.

What the Advanced 12% Do Differently

South Pole placed 71 of the 600 respondents in an "Advanced" group. These companies met all four criteria at once. They have a formal strategy under implementation, value creation and risk protection built into their climate plans, climate risk quantified or integrated into financial decisions, and a dedicated budget for climate transition.

The remaining 88%, the "Aspiring" group, met some of these criteria but not all four. The payoff for the Advanced group was clear. Compared to the rest of the sample, they were:

• 91% more likely to report improved operational efficiency or lower costs

• 91% more likely to report better access to finance or financing terms

• 77% more likely to report winning new customers, contracts, or tenders

• 76% more likely to report entering new markets or industry segments

Dara Olufon, Global Head of Advisory at South Pole, said companies with these building blocks in place are roughly twice as likely to report benefits like lower costs and better access to finance, but they make up only about one in ten companies. "It's time for leaders to establish these building blocks," Olufon said.

Four Actions to Close the Gap

South Pole recommends four steps. Companies should first decide where to act, prioritizing interventions by emissions impact, business value, feasibility, and risk.

Next, they should build the case and secure commitment through executive ownership, dedicated budgets, and CFO sign-off. The third step is mobilizing delivery across core business functions, including suppliers, renewable energy, technology, capital, and market-based instruments, instead of leaving it to sustainability teams alone.

Finally, companies should measure emissions and business value from the start, with the accounting and reporting needed to prove progress.

About South Pole

Founded in 2006, South Pole describes itself as the world's leading carbon asset developer and climate consultancy. The company helps businesses decide where and how to decarbonize, then mobilize the suppliers, projects, technology, and capital needed to deliver results.

South Pole serves more than 3,500 clients, has over 900 carbon projects in its global portfolio, and has helped reduce more than 200 million metric tonnes of CO2 emissions to date. It's a social enterprise recognized by the World Economic Forum's Schwab Foundation.