How Decarbonisation Can Help to Drive Business Success
In today's world, the urgency to combat climate change and reduce greenhouse gas (GHG) emissions has never been greater. In the ever-changing environmental landscape, businesses worldwide are grappling with the complexities of environmental compliance and sustainability, as we aim to preserve and protect our planet.
New research from the 2024 BCG + CO2 AI Carbon Emissions Survey published in September 2024, which surveyed 1,864 directors across 16 industries and 26 countries, paints a varied picture of progress and challenges in corporate decarbonisation. The survey builds on the work they started in 2021 to examine how companies are advancing in measuring and reducing emissions, and to highlight the steps they can take to mitigate climate change.
Corporate decarbonisation efforts have stalled
The survey highlights that global corporate decarbonisation efforts have stalled over the past year. Only 9% of companies comprehensively reported Scope 1, 2, and 3 emissions, down from the previous year. Additionally, just 16% have set targets across all three scopes, and only 11% reported emissions reductions in line with their goals this year. These figures highlight a slowdown in efforts, despite the pressing need for action.
The benefits of embracing decarbonisation
Although these results demonstrate a fall behind in decarbonisation efforts, 25% of the businesses surveyed have reported significant financial benefits that have come from successful decarbonisation initiatives, mainly through reducing their operating costs. These savings were driven by initiatives such as efficiency improvements, waste reduction, streamlining materials or footprints, and adopting renewable energy.
The survey results also highlighted that companies who are leveraging advanced measures like artificial intelligence (AI), embedding a comprehensive carbon management plan into their business operations and calculating product-level emissions, saw even greater benefits.
Key decarbonisation statistics
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AI usage: Companies using AI are 4.5 times more likely to achieve significant decarbonisation gains.
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Carbon management plan: Comprehensive measurement of all three emissions scopes boosts the likelihood of decarbonisation gains by 1.6 times, while full reporting and setting validated targets increase the likelihood by 1.5 and 1.9 times, respectively.
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Product carbon footprints: Those calculating product-level emissions are 4 times more likely to see decarbonisation and financial benefits.
Summary
While global corporate decarbonisation has stalled this year, the benefits of successful decarbonisation are clear, and there is still optimism among businesses. More than half of the surveyed companies believe they can reduce emissions by 10% to 40% while achieving net cost savings. Companies that embrace innovation and comprehensive reporting in the sustainability space can reduce their environmental impact but also reap significant financial rewards.
Take action now
The findings from the 2024 BCG + CO2 AI Carbon Emissions Survey emphasise the advantages and opportunities for businesses to initiate their sustainability journey. It is essential for companies to take action now, utilising comprehensive strategies to foster positive change and ensure a sustainable future for all.
How Beyondly can help
We use our sustainability expertise and curiosity to drive pioneering change for businesses. Whether that’s through carbon management, better business strategies or embracing circular economy practices like zero waste to landfill or product carbon footprints, we work with businesses to embrace decarbonisation and reduce their environmental impact.
Speak to our solutions team today at solutions@beyond.ly or call 01756 794 951, to learn more about how we can help you on your decarbonisation journey.