- BCG and CO2 AI’s Fourth Edition of the Carbon Emissions Survey Found that Most Respondent Companies Have Made Little Progress on Climate Issues Over the Past Year
- Just 9% of the Nearly 2,000 Companies Surveyed Said They Comprehensively Report Scopes 1,2, and 3 Emissions
- Companies That Use AI to Help Reduce Emissions Are 4.5 Times More Likely to Experience Significant Decarbonization Benefits
- Brazil, India, and China Are Leading in Comprehensive Emissions Reporting, Target Setting, and Reducing Emissions in Line with Ambitions
BOSTON—Despite the escalating climate crisis and 2023 marking the hottest year on record, corporate progress on decarbonization has slowed. A new study by Boston Consulting Group (BCG) and CO2 AI released today reveals that companies have made minimal progress on climate issues over the past year.
In the fourth edition of BCG and CO2 AI’s Carbon Emissions Survey, detailed in the report Boosting Your Bottom Line Through Decarbonization, 1,864 executives overseeing their company’s emissions measurement, reporting, and reduction initiatives were surveyed. The respondents represent 16 major industries across 26 countries, and collectively are responsible for approximately 45% of global greenhouse gas emissions. Each organization has at least 1,000 employees and annual revenues ranging from $100 million to more than $20 billion.
This survey builds on BCG and CO2 AI’s 2021, 2022, and 2023 investigations into the progress that companies have made on emissions management and reduction, and the actions they can take to decelerate climate change.
“This year’s survey highlights the substantial rewards some companies are reaping from decarbonization, including significant financial gains, enhanced reputations, and operational efficiencies,” said Hubertus Meinecke, BCG’s global leader of climate and sustainability and a coauthor of the study.
“Too few companies are seizing the financial gains offered from decarbonization,” said Diana Dimitrova, a BCG managing partner, director, and a coauthor of the study. “By mastering essential foundational actions like measurement, reporting, target setting, and taking advanced steps toward sustainability, these companies can become more efficient, more profitable, and demonstrate a stronger commitment to a greener future.”
Climate Progress Stalls, with a Few Countries Leading by Example
Among the nearly 2,000 companies surveyed in 2024, only 9% described comprehensive reporting of Scopes 1, 2, and 3 emissions. Additionally, just 16% have set targets across all three scopes, and only 11% have achieved emissions reductions in line with their ambitions. These figures are all lower than those reported by companies in 2023.
Companies in Brazil, India, and China are leading the way in comprehensive emissions reporting, target setting, and achieving emissions reductions in line with their goals.
Some Companies See Substantial Financial Benefits from Decarbonization
Even as overall progress seemed to slow, 25% of the businesses that BCG and CO2 AI surveyed reported annual decarbonization benefits equal to more than 7% of their revenues for an average net benefit of $200 million a year. One of the leading sources of these benefits was a reduction in operating costs, often resulting from initiatives focused on efficiency, waste reduction, the rationalization of materials or footprints, or the use of renewable energy.
Unlocking Value by Excelling in Foundational and Advanced Climate Actions
Foundational actions are the initial steps in a company’s decarbonization journey and optimizing them often leads to decarbonization excellence and significant value capture.
- Measurement. Companies measuring all three scopes comprehensively are 1.6 times more likely to experience significant decarbonization benefits.
- Reporting. Companies fully reporting each scope are 1.5 times more likely to experience significant decarbonization benefits.
- Target setting. Companies setting validated targets for each scope are 1.9 times more likely to experience significant decarbonization benefits.
Beyond foundational steps, companies can increase emissions reductions and potential rewards through advanced actions. According to the survey, these tech-enabled actions boost accuracy, impact, and value capture.
- AI Usage. Companies using AI to reduce emissions are 4.5 times more likely to see significant decarbonization benefits. AI tools enhance sustainability efforts by automating tasks, freeing teams to focus on strategic goals like cutting emissions and capturing value.
- Product-level emissions. Companies that calculate product-level emissions are four times more likely to experience significant decarbonization benefits.
- Climate Transition Plans. Companies that adopt a climate transition plan are 2.9 times more likely to experience significant decarbonization benefits and 3.3 times more likely to reduce emissions in accordance with a 1.5°C pathway.
“The window for companies to increase ambition and take decisive action to limit global warming to 1.5°C is rapidly narrowing, but AI has the potential to be a game changer, empowering businesses to reduce emissions and make meaningful strides toward mitigating climate change,” said Charlotte Degot, CEO and founder of CO2 AI and a coauthor of the report. “Our research shows the need for companies to double down on using AI responsibly to make sure they can deliver their climate goals and bottom-line business targets.”
Download the publication here.
