PwC: Corporate Climate Commitments Are Gaining Momentum
Companies are not retreating from sustainability initiatives despite headlines suggesting otherwise, according to PwC's 2025 State of Decarbonisation report.
The number of companies making climate commitments has grown nine-fold over the last five years, with more than 4,000 reporting through CDP in 2024.
More telling is that 37% of companies are increasing their climate ambitions while only 16% are scaling back goals.
"We're entering an era of quiet progress, where companies avoid publicising climate pledges that can open them up to unwanted scrutiny and instead focus on making progress far from the spotlight," the report notes.
Despite these instances of ‘greenhushing’, PwC finds that commitments remain quite stable among companies, even those experiencing leadership transitions.
Widening participation
For this report, PwC examined 47 companies with net zero targets that experienced CEO changes and found none abandoned their climate pledges.
The research also found a significant trend in smaller companies joining the sustainability movement.
The median revenue of companies making commitments decreased from US$3.6bn in 2020 to US$1.3bn in 2024.
The report argues that this indicates that supplier engagement efforts are taking across the global economy, with the largest companies working together with their suppliers to reduce emissions across the value chain.
It is thought that this could create a ripple effect, with suppliers influencing their suppliers, and so on.
What makes a decarbonisation leader?
The report identifies four factors that separate leaders from laggards in decarbonisation.
- How an organisation governs sustainability
- How it funds these initiatives
- The level of engagement and collaboration with suppliers and customers
- The ability to reduce Scope 3 emissions through product sustainability
Now, it is important to note that progress varies significantly across emission scopes.
While companies are making strides with Scope 2 emissions, the report finds that only 46% are on track for Scope 1 targets and 54% for Scope 3 targets.
An interesting pattern emerged showing companies with more ambitious targets often demonstrate better progress.
"Companies with relatively more ambitious targets tend to be on track, while those that are taking a more conservative approach with targets also seem to be approaching their programs cautiously and are behind compared to their targets," the report states.
The business case for sustainability continues to strengthen.
According to PwC's analysis, 83% of companies report R&D investment in low-carbon products and services, with sustainable products achieving revenue increases of 6% to 25%+ over conventional alternatives.
The financial opportunities in decarbonisation
Organisations anticipate that by 2030, more than a third of their revenue will derive from the climate transition.
The findings contradict the narrative of corporate retreat from sustainability, instead revealing a maturation of approaches.
Some companies have extended timelines or adjusted targets, but this often reflects increased rigour in planning rather than abandonment of goals.
With CFOs increasingly involved in sustainability efforts, climate initiatives are receiving more detailed scrutiny and realistic implementation strategies.
Decarbonised companies will rise to the top
The report suggests that success in decarbonisation will likely determine future market leaders.
Companies effectively combining climate targets, product sustainability and operational commitments stand to capture significant value from addressing emissions throughout product lifecycles.
"Success in this new era won't be left to chance – it will likely turn on execution," the report concludes.
While progress on Scope 3 emissions remains challenging, it represents the next frontier where companies can differentiate themselves and create competitive advantage through sustainability innovation.
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