PwC’s Second Annual State of Decarbonization report highlights an era of quiet, but consistent progress on climate action. The report — which used GenAI to analyze responses from over 4,000 companies who submitted responses to CDP in 2024 — reveals a telling split: 37% of companies are raising their climate ambition, while just 16% are scaling back. But not all organizations are decarbonizing at the same rate.
To unpack that, we dove deeper into the data. In our State of Decarbonization – Sector Insights report, we take a closer look at 12 sectors to uncover what motivates climate action and what drivers, barriers, and opportunities companies can expect as they look to deliver on their goals. One immediate takeaway: from energy to electronics manufacturing, each sector is staring down unique pathways to decarbonization.
These pathways — and how companies navigate them — can be largely shaped by the sources of emissions within their operations and whether value chain emissions aggregate upstream or downstream. The sector differences aren't superficial — they’re structural, technological, and often financial. For example, wide adoption of electric arc furnaces can decarbonize steel production but this infrastructure also significantly increases electricity demand. Airlines have begun using alternative fuels, yet scaling alternatives is difficult. Industrial and consumer products companies are employing technology — AI, digital twins, robotics — to help them rethink manufacturing processes and product design and to identify operational efficiencies. At every step, though, the success of such initiatives can depend on collaboration across supply chains and the allocation of the necessary capital.
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