The end of sustainability? Errr….nope.
The end of sustainability is nigh? Far from it…
PwC’s 2025 State of Decarbonization report reveals a landscape where corporate sustainability initiatives are not retreating but instead progressing quietly and becoming more rigorous. Despite public narratives suggesting a pullback, the report indicates that companies are steadfast in their commitments, driven by the recognition of sustainability as a source of business value.
Summary:
- 9x as many companies with carbon targets as five years ago.
- 2x as many companies are making their sustainability targets more stringent than are watering them down (37% vs. 15%).
- 4 in 5 companies are launching low-carbon products and services, as it is recognised that these perform 5%-25% better in the market.
A significant finding is the surge in climate commitments: over 4,000 companies reported targets to the CDP in 2024, marking a nine-fold increase over five years. Notably, 37% of these companies are elevating their ambitions, while only 16% are scaling back. This trend is not confined to large corporations; smaller companies are increasingly making commitments, influenced by supplier engagement efforts. The median revenue of companies making commitments decreased from $3.6 billion in 2020 to $1.3 billion in 2024, indicating broader participation across company sizes.
The report identifies four key takeaways:
- Commitments and Ambitions Remain High: Contrary to headlines about companies retreating from sustainability, the data shows a strong and growing commitment to decarbonization.
- Setting the Table for Shared Value: Companies are learning valuable lessons as they address Scope 1, 2, and 3 emissions, recognising the potential for shared value creation.
- The Greatest Value Unlock is Yet to Come: Scope 3 decarbonization presents opportunities for revenue and margin growth, particularly as companies meet the demand for sustainable products and services.
- Quiet Momentum Turning Climate Commitments into Competitive Advantage: Companies are focusing on execution, integrating sustainability into decision-making, securing financing, engaging suppliers and customers, and innovating products to meet rising demand for sustainable solutions.
The report also highlights sector-specific insights, noting that decarbonisation pathways vary across industries due to structural, technological, and financial differences. For instance, the automotive sector faces challenges in Scope 3 emissions, with 85% occurring downstream after the vehicle leaves the factory. While 69% of automotive companies are on track for Scope 1 and 2 targets, only 28% are on pace with Scope 3 goals, underscoring the need for customer adoption of electric vehicles and investment in infrastructure.
PwC’s report underscores that despite external pressures and changing global leadership, companies are maintaining or even enhancing their climate commitments. The focus is shifting from public declarations to tangible actions, with a clear understanding that sustainability efforts are integral to long-term growth and resilience.
As a vital part of the corporate supply-chain, what do you think this will mean event clients will be asking of the event sector?
See the full report here.
