Accenture: Net Zero Goal

According to new research from Accenture, only 18% of companies are on track to achieve net zero emissions in their operations by 2050, and 38% say they are unable to make further investments in decarbonization in the current economic environment. However, industry leaders can break this economic impasse in just three years by reshaping their decarbonization strategies, enabling growth in energy-intensive, hard-to-abate heavy industries such as steel, metals and mining, cement, chemicals, freight and logistics, whose operations generate 40% of total global CO2 emissions.

Accenture’s analysis found that the number of companies setting zero-emission targets has risen to 37% from 34% last year. 32.5% of companies are reducing emissions, but based on current observable trends, they are not on track to achieve net zero emissions by 2050.

Structural misalignment between decarbonizing economies and sectors is a core constraint on progress:

Access to and availability of affordable, low-carbon energy needs to be improved: 81% of heavy industry leaders expect it will take more than 20 years to have enough zero-carbon electricity to decarbonize their industry, with energy suppliers primarily focused on decarbonizing their own operations.

There is a need to increase confidence in the viability of low-carbon products: 95% of heavy industry leaders expect it will take at least 20 years before net-zero emission products or services can be offered at prices close to those of high-carbon alternatives; just over half (54%) say manufacturers’ future purchasing intentions give them enough confidence to invest in decarbonization.

Concerns about cost management must be addressed: 40% of heavy industry leaders say they cannot afford further investments in decarbonization in the current economic environment, and 63% say the decarbonization measures they prioritize will not be economically attractive before 2030.

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