Despite a shifting regulatory landscape and political uncertainty, most public companies are holding firm (or going further) on their climate change targets. A new study from PwC, drawing on 2024 CDP disclosure data, reveals that 84 percent of companies are either maintaining or accelerating their decarbonisation goals.
This signals that corporate sustainability remains a strategic priority across industries. The growing alignment between climate ambition and corporate strategy offers both a powerful signal and a practical roadmap for other businesses. Keep reading as we unpack the findings.
Key findings from PwC’s 2025 State of Decarbonization
Below are the main findings from the recent PwC report.
1. Climate ambition remains high, despite scepticism
Contrary to headlines suggesting corporate backtracking, 47 percent of companies maintained their climate change targets in 2024, and 37 percent increased them. Only 16 percent reduced ambitions, with most doing so to recalibrate overly ambitious early-stage targets rather than abandoning action.
2. Climate goal setting is growing, especially among smaller companies
The number of companies setting new Scope 1 and 2 emissions targets has increased for seven consecutive years, rising 14 percent in 2024 to 1,293 companies. Interestingly, smaller companies now make up a larger share, with average revenue for companies setting targets dropping from $3.8 billion in 2020 to $1.3 billion in 2024.
Build internal sustainability capability at every level of your organisation with expert-led, online training
3. Scope 3 is the new frontier for climate action
Engagement across the value chain is gaining momentum, as 72 percent of companies are now engaging suppliers, and 67 percent are engaging customers on climate-related matters. This is translating into better reporting, with 3,600+ companies disclosing Scope 3 emissions – an 80% jump from 2023. Still, challenges remain: only 54 percent of companies are on track to meet Scope 3 targets, although this marks an improvement from 50 percent the year prior.
4. Progress on Scope 1 and 2 is tangible, especially on electricity
Companies are seeing stronger results on their operational emissions: 67 percent are on track to meet Scope 1 and 2 goals. Within that, Scope 2 is advancing fastest, with a 12 percent aggregate reduction in emissions, largely driven by a shift to renewable electricity, which accounted for over 40 percent of emissions reductions last year.
5. Climate action is viewed as a value driver
The report found rising investment expectations: companies anticipate an 18 percent increase in capital expenditures and a 21 percent rise in operating expenses going towards climate initiatives by 2030. At the same time, 60 percent of companies already offer low-carbon products, with sustainability-linked product innovation seen as a key opportunity. PwC estimates a 6 percent to 25 percent value uplift from products with sustainability attributes, and lower Scope 3 emissions could also lead to cost efficiencies and improved margins.
Conclusion – Climate change targets are strategy, not just compliance
The PwC findings send a powerful message: despite shifting regulations, companies are doubling down on climate commitments. This is not just about compliance; it’s about risk management, innovation, and competitive advantage. Businesses that act decisively now are the ones best positioned to thrive in a low-carbon economy.
While some companies may be recalibrating, the long-term direction is clear: those accelerating or maintaining climate ambitions today are the leaders of tomorrow. They’re protecting value, building resilience, and responding to growing demand from investors, customers, and employees.
Delaying action may offer short-term relief, but it carries long-term risk – operational, reputational, and regulatory. As more businesses integrate sustainability into their core strategy, capability becomes the differentiator. Explore our sustainability training for employees to equip your workforce with the knowledge, confidence, and skills to deliver on your climate goals.
