Key Impact Points:
- More than 4,000 companies reported climate commitments in 2024, marking a nine-fold increase over five years.
- 37% of companies increased their decarbonization ambitions, while only 16% scaled back.
- Companies anticipate over one-third of revenue by 2030 will be derived from climate transition activities.
Quiet Momentum Continues
Despite headlines suggesting companies are retreating from climate pledges due to economic pressures, PwC’s 2025 State of Decarbonization Report shows the opposite: quiet yet robust momentum in sustainability.
According to the report, sustainability remains a strategic priority for companies, driven by rising energy demands, protecting long-term value, and aligning with customer expectations.
“Companies may be talking less about their climate pledges, but many are focused on addressing rising energy demands, protecting value at risk, responding to evolving customer expectations, and designing their operations to secure long-term growth and resilience.”
Small Companies Joining the Climate Commitment Wave
The median revenue for companies committing to climate goals decreased from $3.6 billion in 2020 to $1.3 billion in 2024, reflecting increased engagement of smaller suppliers driven by larger corporate pressures.
“We expect to see this trend strengthen in coming years, creating a tipping point and having a profound impact on global value chains.”
Strategic Investments Yield Returns
The report indicates a strong link between climate action and financial returns:
- 83% of companies invest in R&D for low-carbon products, seeing a revenue uplift of 6% to over 25%.
- Companies plan to allocate significantly higher portions of CapEx (18%) and OpEx (21%) towards climate initiatives by 2030.
“Most companies aren’t just keeping commitments — they’re turning sustainability into a value creation engine. Organizations anticipate that by 2030 more than a third of their revenue will be derived from the climate transition.”
Scope 3 Emissions: The Next Frontier
While progress on direct operational emissions (Scopes 1 and 2) has been notable, with 67% of companies on track, Scope 3 remains challenging:
- Only 54% of companies are on pace to meet their Scope 3 targets.
- Engagement with suppliers and customers is crucial, with 72% of companies engaging suppliers and 67% engaging customers to drive Scope 3 reductions.
“Scope 3 targets and action remain an important focus area with the potential to unlock a lot of value for companies and their customers.”
Four Keys to Success
PwC identifies critical differentiators between sustainability leaders and laggards:
- Strong governance integrating sustainability into core strategies.
- Consistent and sufficient funding.
- Extensive stakeholder engagement across the value chain.
- Innovative approaches to product sustainability.
“Our findings suggest the recipe for success is coming into focus, and that the coming years will separate industry winners and losers.”
Conclusion
Companies are quietly doubling down on decarbonization, positioning themselves not just to meet climate goals but to thrive financially and competitively through strategic sustainability investments. This trend underscores the business imperative of integrating climate action into core business strategies.
Read the full report
Related Article: PwC: How Tech Companies Can Turn Sustainability Compliance into a Competitive Edge
