As climate change poses an increasing threat across the global economy, organisations are tasked with developing and implementing tangible transformation-based action plans to reduce emissions and work toward net zero.
Some organisations have been taking incremental action and finding quick wins. But to achieve the world’s net zero ambition, business leaders need to think strategically and truly shift their business models and their value ecosystems upstream and downstream. And they’ll need to do so quickly, as the regulatory environment necessitates rapid change. This is where PwC can help—identifying your most effective climate actions and bringing together real-world objectivity, with the right tech and data insights.
Making real progress towards net zero goals is going to need business transformation. This will mean transforming operations, products and services, working within supply chains and navigating complex transparency requirements.
The 2015 Paris Agreement has set the benchmark for limiting global warming by 1.5 degrees Celsius (2.7 degrees Fahrenheit); the next challenge lies in picking a starting point and developing an action plan that delivers compound value and not just incremental results. Most companies are simultaneously pursuing revenue growth, which creates an inherent challenge in finding a holistic solution: How do companies derive benefits for the business while meeting the expectations of regulators and the demands of stakeholders?
The effort, for your company, begins with understanding your own carbon footprint, that of your operations, products and services and of your supply chain upstream and downstream. This opens the door to thinking about opportunities for circularity, energy solutions and options for transformation.
Businesses thinking about how they can become climate compliant in the short-term should also consider how they can create real value from the long-term opportunity that climate change presents.
It’s not only about assessment and reporting. By pursuing transformation, organisations can rethink their sustainability practices from the ground up and shape their businesses to capture long-term value. Organisations that pinpoint the transformation they need, from investment to sustainable innovation, will be positioned for success as climate change continues to unfold.
An organisation’s carbon footprint extends outside its own four walls. Companies need to understand the climate risks along their entire value chain in order to truly assess their carbon footprint and set forth a plan to decarbonise.
The next stage is more challenging—working with vendors upstream and downstream to create incentives, metrics, knowledge, financial resources and opportunities to help them to decarbonise.
Companies are looking to tackle the complex challenges of value chain carbon neutrality and monitor downstream emissions from products, services, and investments. It’s vital that they drive competitive advantage that is truly theirs—spotting new wins and opportunities across their entire value chain.
An ever-changing regulatory ecosystem continues to put pressure on organisations to make transparent their efforts to reduce carbon emissions. They’re tasked with understanding the full scope of taxes and incentives, from the EU Green Deal to the Carbon Border Adjustment Mechanism and the Inflation Reduction Act.
Government action has come in the form of both regulation and incentives, and each can play a role in how businesses approach net zero. Regulation will impact cost while incentives help deliver a business case for a new strategy. Clear training and reporting can connect corporate actions to both regulatory imperatives while helping organisations capture opportunities for incentives.
An assessment of existing net zero initiatives and capabilities to understand the implications of science-based targets for a company’s growth strategy and operating model. Also includes an assessment of the organisation’s emissions. Both are critical to effectively engaging stakeholders and for making the strategic case for action.
With our breadth of knowledge and diverse expertise across domains, from tax to legal and regulatory, to supply chain, to IT, we provide our clients with the comprehensive assessment that they need.
From the energy sector to manufacturing and more, PwC helps companies efficiently and cost-effectively navigate business transformation and pursue decarbonisation.
Working in partnership with PwC, E.SUN became the first bank in Taiwan and the third in the world to be validated by the UN-backed Science-Based Targets initiative.
Metal One Service Asia Group (Metal One) has strengthened its commitment to carbon neutrality and is collaborating with manufacturers and clients to achieve its ecological goals.
PwC Australia worked with CEOs from the Australian Climate Leaders Coalition on addressing Scope 3 emissions. This work culminated in the creation of the Scope 3 Roadmap featuring proof-of-concepts and advice to support other CEOs with Scope 3 emissions reduction.
Learn more about how energy tech company Baker Hughes is working toward net zero at scale.
Our Net Zero Economy Index reveals that the global reduction in carbon intensity has stalled to its lowest level in over a decade. The world must now decarbonise at a rate twenty times faster if we are to limit global warming to 1.5°C. With overshooting this threshold fast becoming a reality, bold action is needed to meet climate ambitions.
Companies in the F&B industry can cut costs and create value by optimising demand, becoming energy independent, maximising markets and electrifying fleets.
Europe’s net-zero transition needs an investment of US$32 trillion by 2050. This requires tripling investments yearly and developing financing strategies.
Working in partnership with PwC, E.SUN became the first bank in Taiwan and the third in the world to be validated by the UN-backed Science-Based Targets initiative.
Partner, Net Zero Transformation Leader, PwC United Kingdom
Tel: +44 (0)7715 704870
Asia Pacific Sustainability, Sustainable Supply Chains, Managing Director, PwC Hong Kong
Tel: +852 6331 6254
Gunther Dütsch
Sustainability Services & Climate Risk, Partner, PwC Germany
Tel: +49 (0)40 63780
