The building blocks for net zero transformation

The recent surge in corporate net zero commitments has been an important and promising development for combating the impacts of climate change — but there is still more work ahead. While most of the Fortune 500 companies have made net zero or carbon reduction commitments, many remain vague in their plans around how value chain emissions will be tackled and, in particular, how downstream emissions from products, services and investments will be monitored.

To support companies on their net zero journeys, PwC has defined nine key building blocks for corporate net zero transformation. This ‘blueprint’ seeks to help companies move from ambition to implementation. For each building block, this report:

Defines the checklist of critical actions companies need to undertake to transform to net zero
Explains why these actions are important
Provides practical and actionable guidance for companies to follow.

Nine key building blocks toward decarbonization

1. Ambition

Aligned to achieving global net zero by no later than 2050 & to limit warming to 1.5°C

2. Governance

Accountability driven from the top

3. Strategy

Embedded and aligned net zero into company strategy

4. Enterprise

Key operating model changes in support of transformation

5. Supply chains

Transformed net zero supply chains

6. Innovation

Developed innovation and technologies to deliver net zero

7. Finance

Financing the net zero transformation

8. Transparency

Communicating action

9. Engagement

Enhancing the pace and scale of net zero action