PwC Releases Annual State of Decarbonization Sector Insights
Overview
PwC has released its Second Annual State of Decarbonization-Sector Insights, revealing a nuanced picture of corporate climate action: while 37% of companies are ramping up their decarbonization efforts, progress varies widely across sectors. The report dives into 12 industries, uncovering the structural, technological, and financial factors shaping their unique paths to net zero.
Quiet Progress Amid Climate Fatigue
Despite headlines suggesting a retreat from sustainability, PwC’s analysis of over 4,000 companies’ CDP responses shows a steady, if understated, momentum. While only 16% of companies are scaling back, a growing number are doubling down on climate ambition—especially as supplier engagement and value chain pressure intensify.
Sector-Specific Decarbonization Journeys
Each sector faces distinct challenges and opportunities:
Automotive: 69% of companies are on track for Scope 1 and 2 targets, but only 28% for Scope 3. That’s because 85% of emissions occur downstream, after vehicles leave the factory. EV adoption and OEM-led innovation are key to closing the gap.
Steel & Heavy Industry: Technologies like electric arc furnaces offer a path to lower emissions, but they also demand massive electricity inputs, creating new infrastructure challenges.
Aviation: Alternative fuels are in use, but scaling them remains difficult. The sector’s decarbonization hinges on innovation and cross-sector collaboration.
Consumer & Industrial Products: Companies are leveraging AI, digital twins, and robotics to optimize manufacturing and design, but success depends on capital investment and supply chain alignment.
Scope 3
Across sectors, Scope 3 emissions—those from upstream suppliers or downstream product use—remain the hardest to tackle. For example, in agriculture and food, 81% of Scope 3 emissions come from sourcing raw materials. This highlights the need for deep supply chain transformation and collaborative climate strategies.
AI-Powered Insights and a Call to Action
PwC used generative AI to analyze over a million data points, surfacing key drivers of success: strategy, governance, and execution. The report emphasizes that while each company’s journey is unique, clear ambition, cross-functional collaboration, and sustained investment are universal enablers.
The message is clear: decarbonization is not one-size-fits-all. Companies must tailor their strategies to their sector’s realities—but those who do stand to gain not just environmental credibility, but also competitive advantage and long-term resilience.
