10 of 11 business sectors fall short of net-zero challenge
PWC listed three actions to achieve sustainability goals.
Ten of 11 business sectors will not meet their short-term emissions-reduction targets, according to an analysis by PWC.
The majority of companies were holding firm to their timelines (53%) or even accelerating them (37%). Yet, sustainability teams tend to focus on easier projects whilst disregarding challenging ones.
According to PWC, companies that perform only high-level estimates of their emissions will lack the details to produce an effective plan.
A plan needs to clearly identify the actions to be taken and then carefully calculate how much carbon it will abate, its cost, how long it will take to implement, and the extent to which grants, tax credits or incentives might offset costs.
Reducing electricity consumption is not a futile attempt, but to hit zet-zero commitments, companies must undertake initiatives with longer effects.
Fewer than 25% of the companies in the PwC study disclosed emissions-reduction projects with a payback period of more than ten years.
Setting aside financing for sustainability initiatives can be useful; but so can pinpointing an internal cost of carbon.
Sustainability initiatives span geographies, require alignment across business functions, and coordination with third parties and regulators.
But when market conditions and business priorities shift, decarbonisation plans can be disregarded.
PWC notes that companies must find ways to embed sustainability throughout the business. This can leverage credits and grants that will increase ROI of decarbonisation efforts.
