Click on any major news site, and you’ll likely see a host of headlines about companies scaling back or even dropping their sustainability initiatives. These stories create the impression that corporate sustainability efforts are faltering under economic, political, and regulatory pressures. But look closer, and you’ll find a different reality quietly unfolding behind the scenes.

According to PwC’s latest 2025 “State of Decarbonization report”, an impressive 84% of public companies have maintained or increased their emissions reduction goals, defying the narrative that businesses are stepping back from sustainability. In fact, 37% of companies have ramped up their ambitions, while only 16% have scaled back, with many of those recalibrating overly ambitious goals.

We see this as a strong signal that companies recognise both the urgency of climate action and the business benefits of reducing carbon emissions. While financial pressures and shifting regulatory landscapes persist, organisations are demonstrating resilience and long-term thinking by embedding sustainability deeper into their operations.

One of the most encouraging findings from PwC’s report is the increasing participation of smaller businesses in setting climate targets. The number of companies making climate commitments continues to grow, with more than 4,000 companies reporting through CDP in 2024, which is a nine-fold increase over the last five years. Notably, the median revenue of companies making commitments has dropped from $3.6 billion in 2020 to $1.3 billion in 2024, highlighting how climate action is becoming a priority for businesses of all sizes.

Additionally, companies are ramping up engagement with their supply chains to tackle Scope 3 emissions. The report shows that 72% of companies are now actively working with suppliers, and 67% are engaging with customers to drive sustainability across the value chain. This increased collaboration is crucial in addressing indirect emissions, which often represent the largest portion of a company’s carbon footprint.

Despite this momentum, challenges remain. Only 54% of companies are currently on track to meet their Scope 3 emissions goals, nevertheless, this represents an improvement from 50% in 2023. However, there is stronger progress in operational and energy emissions, with 67% of companies on track to meet Scope 1 and 2 targets. The shift to renewable energy has been identified as a key driver. This accounted for over 40% of last year’s emissions reductions.

Importantly, sustainability commitments are proving durable even through leadership transitions. Companies stand by their climate commitments even after changing their CEO, demonstrating that these goals are increasingly embedded in corporate strategies rather than tied to individual leaders.

Businesses are backing up their commitments with increased financial investment. PwC’s report found that 83% of companies are investing in R&D for low-carbon products and services. As such, products featuring sustainability attributes can achieve a revenue increase of 6% to 25% compared to traditional products.

Additionally, companies anticipate allocating 18% more capital expenditure and 21% more operating expenses toward climate initiatives by 2030. Beyond compliance, there is a growing recognition of the value that sustainability efforts bring, both in terms of cost savings and new revenue opportunities.

At Net Zero Group, we welcome this positive trend. Despite economic uncertainties and shifting policy landscapes, businesses are demonstrating a commitment to sustainability that goes beyond short-term pressures. The evidence is clear that companies are not just holding the line on climate commitments, but many are pushing forward with even greater ambition.

The path to net zero isn’t without obstacles, but the direction of travel remains strong. As more companies embrace decarbonisation and recognise the economic and environmental benefits of sustainability, we remain optimistic that business-led climate action will continue to accelerate.

References:

84% of companies keeping or accelerating Climate Targets: https://www.esgtoday.com/84-of-companies-keeping-or-accelerating-climate-targets-pwc/