Only 20% of companies globally are meeting their carbon reduction targets, and many acknowledge need for "complete transformation," according to ENGIE Impact report

December 05, 2023 05:00 PM AEDT | By Cision
Follow us on Google News:

ENGIE Impact's 2024 Net Zero Report reveals five core roadblocks preventing organisations making headway with their decarbonisation plans.

NEW YORK, Dec. 5, 2023 /PRNewswire/ -- ENGIE Impact today announced the release of its 2024 Net Zero Report. The report identifies common roadblocks to decarbonisation and explores some troubling findings, including the tendency for many organisations to approach decarbonisation as a limited, narrow initiative instead of the transformational, whole-business approach it needs to be.

This fourth instalment of the annual report, based on surveys of more than 500 senior decision-makers from large global organisations, provides year-over-year analysis of the progress companies are making in their decarbonisation efforts — identifying trends that are both encouraging and concerning.

The share of companies rating their sustainability programmes as either "extremely" or "considerably" successful has significantly increased from a combined total of 28% in 2020 to 68% today. Additionally, half of companies (52%) are already making fundamental changes to their business model to achieve long-term decarbonisation commitments.

figure one
figure one

Infographic - https://mma.prnasia.com/media2/2292645/ENGIE_Impact_1.jpg?p=medium600

However, only 20% say they are "meeting or exceeding" their ambitious goals, acknowledging the extent of work that still needs to be done. A majority of companies also expect future "significant change" or "complete transformation" of some fundamental business practices — including technology and data, sourcing and supply chain, employee skillsets, and even the products and services they offer — in order to reach their long-term decarbonisation commitments.

"The signals from our 2024 Net Zero Report research are encouraging, with corporate leaders indicating they are open to the necessary transformational change," said Mathias Lelievre, CEO of ENGIE Impact. ''There are signs of progress, but there is still significant work to be done. The necessary acceleration is not there yet. We need to do it faster. It needs to happen today. It's time for businesses and governments to prioritise doing the executional work.''

The research revealed five core roadblocks inhibiting corporate decarbonisation progress:

  1. Multiple business priorities and a lack of executive focus.
  2. Internal governance bottlenecks that slow decision-making and execution.
  3. Budget constraints that limit the speed of execution.
  4. Limited data and technology to measure and report progress.
  5. Lack of internal skillsets to execute change at pace and scale.

"These roadblocks are cross-functional and cannot be solved by one group or team alone," said Lelievre. "Taking a holistic business approach addresses all of these roadblocks — turning inhibitors into benefits and creating a pathway to success.''

Companies that approach decarbonisation from a business transformation perspective will be able to address all those main barriers — providing clarity of focus, effective governance, smart financing, alignment on data and measurement, and the right implementation delivery models.

"Most organisations have clear decarbonisation goals for 2050 and many organisations have interim targets to hit by the end of this decade. For their decarbonisation ambitions to remain credible in the eyes of investors, employees, customers, and other stakeholder groups, these organisations find themselves under pressure to deliver measurable progress quickly. They cannot wait to begin to make headway. Now is the time to accelerate decarbonisation efforts together," concludes Lelievre.

Download ENGIE Impact's 2024 Net Zero Report for the latest insights on global decarbonisation trends and opportunities.

About ENGIE Impact
ENGIE Impact partners with companies to accelerate decarbonisation efforts worldwide. ENGIE Impact's comprehensive engagement model goes beyond strategy to include data excellence and digital tools, project delivery expertise, and financing support. An authentic long-term partner, ENGIE Impact establishes credible paths to hit difficult carbon-reduction metrics while sharing commitments and accountability across portfolios. With 20 offices worldwide and headquarters in New York City, ENGIE Impact today has a portfolio of over 1,500 clients, including 25% of the Fortune 500 Companies. ENGIE Impact is part of the ENGIE Group, a global leader in the transition toward a carbon-neutral economy through reduced energy consumption and more environmentally friendly solutions.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK