Last week global professional services firm Accenture published its fourth annual Destination Net Zero report, in which it examined the decarbonization efforts and progress of the 2,000 largest public and private companies by revenue globally (G2000).

While the world’s largest companies are making meaningful progress toward net zero, the pace of decarbonization is not fast enough to meet global climate targets, the report found. Only 16% of G2000 companies are on track to reach net zero in their operations by 2050 (down from 18% in 2023). Thirty-nine percent are decreasing emissions but not fast enough to reach net zero by 2050. Forty-five percent are moving in the wrong direction, with emissions increasing.

The report also notes that while the largest companies are increasingly adopting operational emissions targets (covering Scopes 1 and 2 emissions), a much smaller percentage of companies are adopting full net zero targets (covering Scopes 1, 2, and 3).

Other notable findings from the report include:

• Operational emissions have been cut.  In their latest year of reporting, 55% of the G2000 (of those with emissions data) reported lower Scope 1 and 2 emissions totals than in 2016. 
• Operational emissions intensity has been cut. Seventy-seven percent of the G2000 have reduced operational emissions intensity (in their Scope 1 and 2 emissions) on a revenue basis from 2016 to 2022, with the typical company cutting emissions per unit of revenue by 6% annually since 2016. 
• Companies are increasingly adopting net zero target goals—but most focused on operational emissions targets only. Thirty-seven percent of G2000 companies have set full net zero goals across Scopes 1, 2, and 3 emissions (an increase of just 0.3 percentage points from last year, but 10 percentage points higher than 2021, the first year of the study). The proportions rise significantly when considering only operational emissions targets, covering just Scopes 1 and 2. A solid majority (65%) of companies now have at least operational net zero targets in place, up 11 percentage points from last year and 26 percentage points from 2021. Only 37% have adopted full net zero targets (Scopes 1, 2, and 3).
• European G2000 companies are leading the way. Sixty-four percent of European companies have full Scope 1–3 targets, up 3 percentage points from 2023 and 26 percentage points from 2021. The report attributes the geographic differences to various causes, including regulatory developments and differing economic and political climates.
• The majority of North American G2000 companies are setting emissions-reduction targets. Only 26% of North American companies have full Scope 1-3 targets (three percentage points higher than in 2021, but one percentage point lower than last year, mainly due to changes in the composition of the G2000). However, 49% have at least a net zero in operations goal (covering Scopes 1 and 2), and only 22% display no evidence of an emissions reduction target. Moreover, the share of companies with a target covering operational emissions increased to 23%, up 4 percentage points from 2023.
• Many G2000 companies have adopted transition plans. Forty-six percent of the G2000 publicly share their plan to transition to a low carbon economy. Companies with a full Scope 1–3 target are even more consistent; 77% of them say they have a transition plan in place.
• G2000 companies are embracing a broad range of decarbonization tools. Eighty percent of the G2000 are embracing a broad range of decarbonization tools to address their emissions including energy efficiency, waste reduction, renewables adoption, circular principles, and decarbonization of buildings. In addition to these methods, material sourcing adoption rose to 66% from 45% last year, and employee incentives rose to 54% from 23%.
• AI could be a game-changer, but there are concerns. While AI has the potential to accelerate sustainable development and enhance ESG reporting, its high energy demands could undermine emissions reductions.